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Do I need 1095-A if I'm covered under parents' health insurance and not a dependent?

I am 25 and covered under my parents' marketplace health insurance, but they do not claim me as dependent. They pay for 100% of the health insurance. Do I need to enter a 1095-A, and would I even recieve one if I do not pay for the insurance?

Recommended answer indicates the tip may not be valid for adult children under poverty level. Has there been any clarification from the irs on this yet?

taxes8841

Thanks, My 22 year old daughter can't be claimed as a dependent because she's went over the income limit and is not a full time student but she still stay with us and is on our Marketplace policy and we received only one 1095-A, I guess the 100% parents and 0% daughter allocation will work for us.

Surfbandit

That will work, but most likely the best result would be the other way around.  Allocate 100% to the daughter, and 0% to the parents.

TaxGuyBill

Hi TaxGuyBill, Will the IRS question this because there's a big different of $500 allocating 100% to the daughter, and 0% to the parents? I don't need a letter in the mail saying she have to pay something back or is just a matter of choice use our income or my daughter income. Thanks

Surfbandit

They shouldn't.  They specifically say it can be allocated any way you want.  Just be sure you enter it on both tax returns, or you will get a notice.

TaxGuyBill

Thanks TaxGuyBill, Great advice! :-)

Surfbandit

I was on my parents Obama care plan but got married mid year so I'm filling my own taxes. I understand I needs fill in the 1095-a that my parents got, but I'm not understanding the allocation process. I obviously made less money than my parents. Would it be more beneficial for me to claim 100%? If so does that mean I'll get a higher return and they'll get less?

Bruce

Yes, and yes.  But your increase of refund should be MORE than their decrease in refund.

I do suggest discussing it with your parents, and trying it out both ways to see what the overall results are.

TaxGuyBill

Thanks so much, I'll look into this.
I'm using the online free version, would that work to see the overall results?

Bruce

Possibly, but I think the CD/downloaded version would be easier and less problematic.

If you use the Online versions, DON'T use the same account to do yours and your parents' tax returns.  That will mess things up.

TaxGuyBill

Hey bill .... do you have any links or sources to where you see the IRS specifically say you can choose your allocation amount on your own?

afc472

See "Allocation Situation 4" on Page 16 of the Instructions for Form 8962:

"You and the other taxpayer may agree on any allocation percentage from zero through one hundred percent. You may use the percentage you agreed on for every month for which this allocation rule applies, or you may agree on different percentages for different months. However, you must use the same allocation percentage for all policy amounts (enrollment premiums, applicable SLCSP premiums, and APTC) in a month. If you cannot agree on an allocation percentage, the allocation percentage is equal to the number of individuals enrolled by one taxpayer for whom the other taxpayer claims a personal exemption for the tax year divided by the total number of individuals enrolled in the same policy as the individual."
https://www.irs.gov/pub/irs-pdf/i8962.pdf#page=16

TaxGuyBill

If the healthcare policy has a few taxpayers (parents as policy holders, and 2 children filling their own taxes) would the lowest income child claim 100% allocation?
Thanks Bill, you've been very helpful

Bruce

Yes, that would have the best results.

Actually, it's not the tax return that has the lowest INCOME that is best, but the tax return that has the lowest POVERTY LEVEL percentage.  That is a combination of income and family size.

For example, if you look at the table on Page 6, you can see what the 100% poverty level is:
https://www.irs.gov/pub/irs-pdf/i8962.pdf#page=6

For simplicity, let's say the 'child' (family size of 1) has an income of $11,670 (100% of the poverty level).  If the parents (family size of two) had income of $15,000 (LESS than 100% of the poverty level), the best result would be to put 100% on the PARENT'S return, because they have a lower poverty level percentage (even though they have more total income).

TaxGuyBill

Gottcha, figured!
Thanks for spelling it out so well.

Bruce

TaxGuyBill - My husband and I have the insurance for our 2 sons.  I am supposed to claim them both as dependents. #1 son is married and is not a student.  First off, the on-line won't let me claim this son as a dependent. Since when I signed up saying I would, do I now not have to?  When doing his taxes, it does ask what % he is responsible for.  #2 Son is a student.  I can claim him.  When filing his taxes, it does not ask his %.  I am worried we are over our initial projected income.  Can we put all 100% to # 1 son? Can we make #2 son claim a %?

tyler.j.bartek

If #2 son is your dependent, nothing goes to him.  His tax return shouldn't even ask him about insurance.

Yes, you can allocate 100% to your #1 son if you choose to.  Just be sure that you both enter the 1095-A into the program, and enter the proper percentage so they total 100%.

TaxGuyBill

So, even though I was supposed to claim # 1 as a dependent, concerning insurance tax credits - and now find that I can't due to normal dependent tax regulations - I can just not count him as a dependent and have him claim himself?  

We only received one 1095-A because all 4 of us were on the same policy and same tax form, claiming all 4. Would we both enter the same 1095-A?   Thank you in advance for your help!

tyler.j.bartek

What you tell the Marketplace about dependent is ONLY an ESTIMATE.  If that is not what actually happens on the tax return, then in most cases you will need to repay part of the Advance credit that you receive.  What you are ABLE to do on the TAX RETURN overrides everything else.

Yes, you would both enter the same 1095-A.  On screen immediately after that, be sure to check the box indicating the policy was shared with somebody that is not on your tax return.  Then you can enter the allocation percentage that you decide on.

TaxGuyBill

Thank you!!  I spent over an hour on the phone with Marketplace today trying to get answers.

tyler.j.bartek

TaxGuyBill,  Thanks for the answer. It's exactly my situation, except that I'm the parent.  Allocating 100% to my non-dependent 24 year old son adds a significant amount to the PTC vs allocating 100% to me (my wife and 21 year old son).  I am wondering though...is there a place where a TurboTax TaxPro has answered this same question?  Nothing against you, but I'd like the extra assurance (and protection).  Thank you.

ryankforbes

TaxGuyBill answered this question after I did, and he is correct. I amended my answer somewhat, but  I didn't repeat everything that he already explained. As far as allocating the premium is concerned, please see this link to Publication 974: https://www.irs.gov/pub/irs-pdf/p974.pdf

In particular, see page 17, "Taxpayers Allocating Due to a  Divorce or Legal Separation and Also Allocating
With Another Taxpayer. "  Read the statement  " You and your former spouse can allocate these
amounts using any percentage you agree on between zero and one hundred percent." I know that it refers to spouses, but the section refers to  anyone who is allocating with another taxpayer.

TurboTaxIsabellaG

I appreciate the link to the recipe :), but I think you meant another link.  Maybe I'll try the hot cajun sauce! :) ha ha.

ryankforbes

Well, it IS a good recipe. I changed the link, sorry about that!

TurboTaxIsabellaG

LOL.  I think she may have meant this link, on page 16 under "Allocation Situation #4":
https://www.irs.gov/pub/irs-pdf/i8962.pdf#page=16

As a side note, I know more about the ACA than anybody at Intuit.   :-)

TaxGuyBill

TaxGuyBill, you certainly nailed the answer to my specific situation.  I don't think many people have figured this one out.  Thanks!!!

ryankforbes

I just read the situation #4, but I did not receive the APTC (advanced).  I chose to wait until now to reconcile.  Does that make a difference?  I am more like situation #3.  One policy (household) with 2 tax families: Tax family 1 is myself, wife, and 21 year old fulltime student and Tax family 2 is my 24 year old son (full time student, but his age and income, over $4,000 does not allow me to claim him as dependent).  When I got the health policy, I did not realize that he would not be a dependent. So, does my situation change your advice?  Thanks in advance.

ryankforbes

Also, I assume that both tax families on the one policy should meet the requirement to qualify for the PTC, correct?  In order for one of my tax families to qualify, I need to take an IRA deduction in order to reduce my AGI.

ryankforbes

TaxGuyBill - Sorry to keep asking more questions.  Could you or someone reply to the above questions, plus:
So, if my son (tax family 2) takes the 100% of the PTC and I (tax family 1) take 0%, can I (tax family 1) include health insurance premiums deduction on Schedule A?  My son will not itemize deductions on his return.  Thanks again.

ryankforbes

OH, my mistake.  TurboTax automatically corrects Schedule A if you take 0%.  Great program.

ryankforbes

Let me address your second question first:  It shouldn't matter if both tax families qualify for the credit.  As long as the one claiming the premiums (ideally 100% of the premiums) qualifies, that is all that should matter.

No, I don't think that no APTC will make any difference for allocating 100% to your son, UNLESS your son is below 100% of the Federal Poverty Level (FPL).
https://www.irs.gov/pub/irs-pdf/i8962.pdf#page=6

If that IS the case, in most cases you will NOT want to allocate any of the 1095-A to that person.  If the person is below 100% of the FPL *AND* did NOT receive any advance credit, in most cases that person will not qualify for the credit at all.

TaxGuyBill

Thank you very much for your assistance and time.

ryankforbes

Ok, me again...if my son takes 100%, then the premium tax credit is actually higher than his income.  Is that acceptable?  Will it trigger IRS inquiry?

UPDATE:  We are a family of four: husband, wife, college student dependent, college grad student non-dependent.  We have one health insurance policy (healthcare.gov) with two tax families.  We chose to give my non-dependent son 100% of PTC and we put down 0%.  It was much, much more beneficial to do it this way.  The non-dependent's son's tax return took longer to process (27 days) than others in family, but it was approved!  Thought that I would give you an update.  Thank you for your help TaxGuyBill.

ryankforbes

Thanks tax guy bill, you've been very helpful.
I know it might be repetitive, but I wanna make sure it's all correct.
My parents have a healthcare marketplace plan that they paid for, for 7 people- 2 parents 5 children, 2 of the children are filing their own taxes.
I (one of the children paying their own taxes because I got married) entered the 1095-A and clicked sharing with another tax payer. Then I put 100 in all 3 boxes. Now it showed that I get a premium tax credit of $6,948. (Btw I paid nothing for the policy, my parents did) Is that ok as long as my parents and other sibling paying taxes enteres 0 in the 3 boxes?

Basically what's coming out is that between the APTC already paid for the plan and the extra credit I'm getting now the whole health plan for 7 people will cost $1557.12.

On a side note when my parents signed up for marketplace they underestimated the 2015 income- so they were scared they'd have to pay extra, but it seems like we'll get a lot more.

Thanks again for your time.

Bruce

@TaxGuyBill @TurboTaxIsabellaG further reading on "Allocation Situation 4" on Page 16 of the Instructions for Form 8962 on allocating different percentages:

"However, you must use the same allocation percentage for all policy amounts (enrollment premiums, applicable SLCSP premiums, and APTC) in a month."

TurboTax allows one to allocate different percentages to each of the policy amounts. The effect is one tax return can claim 100% of the Premium and SLCSP Percentage and claim a huge refund while the other 100% of the APTC and limit the payback amount. Is this allowable or should there be an error if different percentages are used?

.finances

As you read from the directions, if you are in "Allocation Situation 4", they must all be the same.  You can not can use different amounts.

Other situations (such as #2), some numbers are not allocated, which is why there is not an error.

TaxGuyBill

@TaxGuyBill my mom and I are on the same covered CA plan. I am no longer a dependent on their taxes so we are thinking on allocating 100% to me like you explained since you said that will most likely be most beneficial. To allocate 100% to me, do i simply put 100% for all three percentages(premium, slcsp and ptc))on my taxes and 0% on my mom's?

gomezmorales

Yes.

TaxGuyBill

@TaxGuyBill   So If I was filing my own taxes and my parents can no longer claim me. BUT I am on my mom's insurance. I am still confused why I should get 100% and my mom gets 0%. Since shes the one paying for the health insurance, shouldn't she get 100%? I'm still confused after reading this. What would happen if I put down 0% for myself and my mom gets 100%

ttrinh20

@TaxGuyBill Would it matter if my parents get 100% since they have been the one paying for the insurance? Would it have any affect on me?

ttrinh20

@TaxGuyBill If I put 0% for myself. Does my parents need anything from me when they file their tax return?

ttrinh20

You and your parents can agree to any percentage you want, as long as all three numbers are the same percentage.  The best overall tax refunds would usually be if 100% is on your tax return, but you are not required to do that.

If your parents' claim 100% and you claim 0%, it will not affect your tax refund at all.  Just enter the 1095-A and enter 0%.  Your parents' would not need anything from you.

TaxGuyBill

Should it matter if the parents are not eligible for PTC (but received APTC)?.  It seems if you allocate all of the 1095-A to a non-dependent child (under 26 of course), using 100% of the SLSCP, but the child's low annual contribution, there could be a big windfall in advance credit to the child.

rwoo1992

That is the point of allocating 100% to the child.

TaxGuyBill

Whats PTC and APTC?

ttrinh20

Premium Tax Credit and Advance Premium Tax Credit.

TaxGuyBill

What does it mean when @rwoo1992  said there could be a big windfall in advance credit to the child?

ttrinh20

If My parents get 100%, does that mean my parents get more back in their refund? @TaxGuyBill

ttrinh20

For some reason my name is not shown on the 1095 A covered members only my parents.. does this mean that i did not have coverage?

anaklein1040

Thanks for all your help. Was on my dad's marketplace plan. @TurboTaxIsabellaG @TaxGuyBill I am not his dependent. He may have not specifically stated that when he set up the policy. Should I fill out my own 1095-A (I know very little about the plan details), or use his?

amandasnelson

If you did not receive a 1095-A of your own, you would enter his 1095-A and then check the box in the following screen to say it was shared with somebody that is not on your tax return.

TaxGuyBill

we lived with our daughter for 5 mounts and she left to different place. we keep her in our policy up to that same date, and we received the form 1095-A. but she is now having the problem that she can not have tose months her taxes because the 1095 is under the parents names. What she neds to do?

jhondiaz13

hey. have a question..
Filed my return... it was accepted but now was told by IRS i forgot 1095-A and need to file 8962 and fax both them back...
My dad pays for my health insurance (but he can't claim me) so I didn't get a 1095-A.. he has it tho with me on it..
so what do I need to fax back? do I need his tax return also?

thanks for your help.. awaiting your response

dee

you need to get a copy of your parent's 1095A and use it to fill out 8962. They can either you allow you to take the entire 100% credit or they can. you will need to fax 8962, 1095A and the 2nd page of your 1040 with your actual signature on it.

anaklein1040

Thanks! Is it weird the IRS withdrew money from my account (I owed in taxes) but now my return wasn't processed... so after I fax it in.. I'm done? It's completed?

dee

Also I didn't receive the letter yet but I spoke to them on the phone.. do I need the letter to fax back?

dee

And one more thing  (sorry for all the questions) do I need to call up the health care market and let them know my dad can't claim me or its fine as is and I can just use his 1095-a as long as I'm on his plan?

Thanks!

dee

I am filing independent. I was on my parents' healthcare policy(obamacare) for the first five months of the year. I then got a job and moved to employer health coverage. My parents received 1095-A, but I did not receive a 1095-A due to the fact that I was listed as a dependent when my parents applied for coverage in 2015. On my 8962, would I enter in zeros for all months that I was not covered on my parents' obamacare policy?
And for part IV on the 8962, do I have to enter in my both my parents info or just my dad's since my parents file jointly?

fsufreak93

I filed as an independent.  I received a letter from the IRS saying I needed to complete Form 8962. I was on my mom's marketplace healthcare, along with my younger sister and dad, from March to May before she cancelled it. I also received a 1095-C from my internship.  When filling out the 8962, should I claim any percentage of the PTC even though none of my income went into paying for the healthcare? And if so, how would I know what percentage my parent's decided to get? Would it be in their tax return somewhere? Also, if I still have to fill out the 8962, on line 2b, should I put a zero on there since I have no dependents?

jcalzada

You need to ask your parents what they claimed.  If they did it correctly, Line 30 of Form 8962 will be filled out with the percentage.  If it is not, then columns A, B and F of the Form 8962 should match their 1095-A's columns A, B and C.  That would mean they claimed 100%.

Correct, Line 2b would be blank or zero.

If you start the process to amend, you can go into the Healthcare section and enter the 1095-A from your parents, then check the box on the following screen that the policy was shared with somebody not on your tax return.  After entering the percentage, TurboTax will automatically create and fill out Form 8962.

Were you covered by BOTH the Marketplace insurance and your internship insurance AT THE SAME TIME?  If so, the creates some problems, especially for your parents.

TaxGuyBill

Hey.. I filed my taxes but now got letter asking for 8962 and 1095-a... my dad payed for all my health insurance and he can't claim me tho.. I'm on his 1095-a. What u recommend

dee

TaxGuyBill, the 1095-C that I received from my internship said on months October-December "self-insured employer-sponsored coverage". I do not know if that would make any difference.  

Also, my mom said that they were not asked for their 1040-A when they filed their taxes, just asked simply if they had insurance in 2015. I am guessing that my parents will be getting the same letter from the IRS like I did.

Would it be okay if I submit my Form 8962, taking into account how my parents and I agreed we would split the PTC? And for Part II, are the numbers in the fields supposed to be exactly like they are on the 1040-A, or should I take into account the percentage of PTC I will be claiming?

jcalzada

Hey taxguybill..
question.. I was on phone with IRS told there was issue with my return with the health insurance 1095-A... they told me what i need to send back and gave me fax #.. do i need to wait for the letter? or i can fax it back without the letter?
Thanks for your time

dee

@dee I don't know, but I would wait for the letter.  Others have said that the letter says to put the letter ID number on your fax submission, so I would wait.  You could also call the IRS and ask them if you should wait for the letter, or if they will give you that ID number to put on the fax submission.

TaxGuyBill

@TaxGuyBill thanks! one more q if i may... my dad payed for all my health insurance  ( we filling seprate).. if he decides to claim 100% and my tax amount doesnt change than i assume, do i need to fill out a 1040 page 2 again or is the 8962 form and 1095-A enough?
thanks again

dee

Because the IRS is asking for page 2, I would send page 2.  However, nothing will change on it, so you can just send a copy of your original one (and be sure to sign and date it).

Just be sure to fill out Part 4 on 8962 to show what is being allocated.

TaxGuyBill

Thanks!

dee

@TaxGuyBill and this means when my dad files hes going to have to check off the box that says he payed health insurance for somone not on his return?

dee

@TaxGuyBill I just received a letter saying I needed to complete form 8962 and submit a 1095-A from when I filed my taxes back in February. My father paid for my health insurance all of last year, and I originally filed my tax return incorrectly as I had wrongly assumed that I was on a private insurance plan. However, I was actually on a marketplace plan under my fathers name. I'm listed as the sole covered individual on the 1095-A, while the policy is in my fathers name. They can't claim me as a dependent, and I also happened to fall under the federal poverty line last year. My problem is when I fill out an amended return on TurboTax, claiming 0%, as I fell under the poverty line, my tax return is now $0, which is quite disappointing as my original return was much more than nothing at all and would have been extremely useful. Why would allocating 0% on my return and 100% on my fathers cause my return to disappear?

pspbrad

@dee  :  Yes.

@pspbrad  :  If you can not be claimed as a dependent, enter the 1095-A on your tax return and DO NOT allocate anything.  It goes goes on your tax return, but the 'shared allocation' part is not done.

TaxGuyBill

@TaxGuyBill I'm sorry, could you elaborate? This is my first year having to do anything with a 1095-A and it's quite confusing. The 1095-A is in my fathers name, I didn't receive one and had to get the information from the one they sent him. It lists me as the sole individual covered in the plan, but the policy is in his name. Do you mean just leave the fields blank in the allocation section of the "Shared this policy with another taxpayer who is not on my taxes" section? If I enter 0%, since I fell under the federal poverty line, my refund goes to $0, and leaving the fields blank give me the same refund I would have if I had claimed 100%, which is more than my original refund.

pspbrad

You should not check the "Shared this policy with another taxpayer who is not on my taxes" box at all.  Just enter the 1095-A, and that is all.  If column B of the 1095-A is blank, you need to look that up (see link).  If it is not blank, just enter the 1095-A that that is all you need to do.
https://www.healthcare.gov/tax-tool/

TaxGuyBill

@TaxGuyBill few questions if u dont mind..
im on my dads 1095-A but hes not claiming me and im allocationg 0% hes claiming 100%.. (irs sent letter)...
so on 8962 part 1 only thing i fill out is box 1 and box 2a?

dee

@TaxGuyBill few questions if u dont mind..
im on my dads 1095-A but hes not claiming me and im allocationg 0% hes claiming 100%.. (irs sent letter)...

1- so on 8962 part 1 only thing i fill out is box 1 and box 2a? leave rest blank?

2- part 2 is check off yes by question 9 and than i skip to part 4?

3- than on part 4 by B do i fill in m dads SS# and than o% by all three boxes below that?

4- and question 34 is yes or no or leave blank?

THANKS!

dee

if anyone can help... i dont understand the 8962 to i just check off question 9 and than go to part 4 or do i fill out from questions 1-8..
thanks! (its so unclear)

dee

I applied for the marketplace plan to include myself, spouse and my 3 daughters (all were supposed to be a dependent). At the end of the year, Daughter #1 makes too much income and doesn't qualify as a dependent. Daughter #2 is still listed as a dependent but must file her own return. Daughter #3 is a child and has no income. I received 1095-A with all of them listed as covered. I made too much to where I would have to pay back ALL and I mean ALL of the advanced premium tax credits I received, my poverty level was more than 401%. My only option is to allocate ALL (if possible) to my non dependent daughter. How would the IRS respond to this if saved myself from the tax burden and allocated 100% to my non dependent daughter which resulted in a nice refund?

jessly314

@TaxGuyBill I applied for the marketplace plan to include myself, spouse and my 3 daughters (all were supposed to be a dependent). At the end of the year, Daughter #1 makes too much income and doesn't qualify as a dependent. Daughter #2 is still listed as a dependent but must file her own return. Daughter #3 is a child and has no income. I received 1095-A with all of them listed as covered. I made too much to where I would have to pay back ALL and I mean ALL of the advanced premium tax credits I received, my poverty level was more than 401%. My only option is to allocate ALL (if possible) to my non dependent daughter. How would the IRS respond to this if saved myself from the tax burden and allocated 100% to my non dependent daughter which resulted in a nice refund?

jessly314

I am not included as a dependent on my mother's taxes but I'm under her health insurance. She didn't include me as a shared policy person on her taxes even though it says we both were supposed to and she didn't get anything from the IRS though I did because I never got the form 1095 A. What should I do? She already claimed 100% of the PTC.

adailey1227

Hey TaxGuyBill

I got letter LTR 12C from the IRS. I'm not sure how the allocation process works. There are 3 people on our plan (Mom, brother, me). My parent pays for 100% of my insurance. Does that mean I receive 0% allocation? What are the next steps for responding to this letter? Thanks!

djtallungan

@TaxGuyBill ^^^^

djtallungan

You need to re-read the answer above.  The 'default' allocation is that you get 33.33%.  If everybody agrees, it can be any percentage you choose, as long as a total of 100% is claimed.

As for how to respond, see this post:
https://ttlc.intuit.com/questions/3155571-what-do-i-do-if-i-received-an-irs-letter-about-a-missing-form-8962-on-my-2015-return?jump_to=answer_5239521

TaxGuyBill

Hi Bill,

I am being audited by the IRS and don't know how to proceed forward.  They are saying I owe thousands and I was wondering if that amount can be reconciled.

I got married last year but I was and am still on my parents insurance.  I'm not sure if they claimed me or not (which is why I might owe so much to the IRS).  My parents are self-employed so I don't know if they received a 1095-A.  

I am still a student but still make ~$13k annually.  My husband makes a significantly higher income than my parents do and I just don't know where to start.  I don't believe I owe THAT much in taxes (around 4 grand) but then again if my parents didn't claim me, do I?

Please assist.Thank you so much

courtvo

As your parents if you were on their Marketplace insurance.  If you are, then ask them if they are claiming 100% of it.  If they are, then you can get a copy of their 1095-A and enter it into TurboTax indicating that you are "allocating" 0% to yourself.
https://ttlc.intuit.com/questions/3155571-what-do-i-do-if-i-received-an-irs-letter-about-a-missing-form-8962-on-my-2015-return?jump_to=answer_5239521

TaxGuyBill

@TaxGuyBill ; I have one dependent minor child and two independent adult children under the age of 27 for the 2015 tax year. All four of share a Obamacare plan.  Both adult children filed their returns, neither filed the 8962 form and I am on extension.  Both adult children received a notice from the IRS in regards to filing the 8962 form for which I then helped them do.  Since I paid 100% of the premiums, we had agreed that I would take 100% of the Premium, SLCSP & APTC (columns e,f &g on form 8962).  We faxed in the forms as requested (no amendment).  One adult child has since received her tax refund, the other adult daughter is still waiting for hers.  However, after reading here that it would be beneficial to give 100% to the lowest poverty percentage - that would be adult daughter number 2; who is the one still waiting on her return - I want to now do that.  I re-ran her return giving her 100% and then prepared my return taking 0% and it results in a positive net swing of over $500.00 to me (after taking my increased tax against her increased refund) (which I am happy to take) essentially making our total cost for 4 on bronze $2.76 for the year and reducing my tax liability by $500 and change.  So, here is my question: Do I now need to file an amended return for daughter #2 indicating that she is now taking on 100% of the premium? or can I simply send in the corrected 8962 form via fax as we did (per request of IRS letter) when it was first submitted with initial IRS request?  AND; since I did in fact pay the premiums and I am self employed, I assume that I will NOT be able to take a deduction for those premiums now since my daughter is taking 100% of the allocation (please confirm).  And thanks so much.

Kelly275

correction: adult daughter #2 is waiting on her refund...not her return - that was filed without the 8962 and then the 8962 was completed and faxed in per IRS request.

Kelly275

Unfortunately, I'm not sure.  I would THINK that just faxing the forms allocating 100% to herself will work, but this is all pretty new so it's still difficult to know how the IRS handles these things.

It would probably speed things along if you also file your own tax return as soon as possible (allocating 0% to yourself).  That way, the IRS would know that your daughter would not be incorrectly allocating it to herself.

TaxGuyBill

Correct, you could not use the Self Employed Health Insurance deduction because it is all being allocated to your daughter.

TaxGuyBill

I think I will try faxing it in with a corrected 1040a and 8962 perhaps with a follow up call to them on Monday just to make sure.  Thank you for your response.

Kelly275

Oh, and yes, I am putting the final touches on my own return and will send that off today.

Kelly275

@TaxGuyBill I, a full-time student, was on a same healthcare.gov plan with my brother-in-law and my sister under my brother name. I am no longer their dependent as they told HealthCare Marketplace when they applied for the insurance because I later I got a job and have gross income > $4,050 but still significantly < 100% of the Poverty level. My brother paid all the plan premium and received APTC for the plan. My brother&sister income = 400% the Poverty level. I want to know when I file my tax return, I import my brother’s 1095-A to file the Insurance part, do I need to check the box “Shared this policy with another taxpayer who is not on my taxes”? And can I allocate 100% to myself for all Premium %, SLCSP %, and  APTC % if my income < 100% of Poverty level ? For the best benefit of all (two tax families), my brother&sister married filing jointly and I filing single, what should we file in the allocation of policy part? And do we need to file 8962 for two tax families? Thank you so much.

calvin

How old were you?  If you were under age 24, your sister can still probably claim you as a dependent.

Was there any Advance credit paid (column C of the 1095-A)?

TaxGuyBill

@TaxGuyBill Thanks for answering me so fast. I am 26 now. and yes, there was APTC in column C of the 1095-A.

calvin

Sure, make things complicated.   :-)

Yes, it can be 100% allocate to you.  However, TurboTax will determine you to qualify for the credit, but the way I read things, you do not qualify for it (the Marketplace did not determine YOU to qualify for the Advance credit, they determined your SISTER to qualify).  To counter-act that, you would need to enter $0 in column B.  TurboTax will mark that as an error, and you would need to file by mail.

Although you would need to repay $300 of the Advance credit, if your sister claimed 100% of it she would need to repay ALL of the Advance credit that was received in column C of the 1095-A if their income is over 400% of the poverty level.

Yes, you both need to file form 8962 with the allocation numbers.  However, last year TurboTax would not have filed the 8962 for your sister if she claimed 0%.  I don't know if they fixed it or not (I doubt it).

TaxGuyBill

@TaxGuyBill l Thanks again. But I doubt I understand your instruction :). First time filing tax for myself, sorry. So, you said, I can’t allocate 100% to myself, and 0% to my sister as I do not qualify for the Advance credit. Then, can I allocate any part of it?
In case if I can't allocate any, and my sister has to take all 100%, then yes she has to repay All of the Advance credit in column C 1095-A as you said. But do we have to check the box “Shared this policy with another taxpayer who is not on my taxes”?
Thank you.

calvin

Yes, you can allocate 100% to yourself (*IF* your sister agrees, and she claims 0%).


But TurboTax will give you the wrong result.  To make it calculate correctly, when you enter your 1095-A, enter $0 for the amounts in column B (SLCSP).  Do not enter what is on the 1095-A.  Then mail your tax return.


Yes, BOTH you and your sister need to check the box "Shared this policy with another taxpayer who is not on my taxes".  If your sister uses TurboTax, the program MIGHT not file the proper form for her.   She needs to check if Form 8962 is printed with her tax return.

TaxGuyBill

@TaxGuyBill At the beginning of the year, my minor son was enrolled with his father in a Marketplace plan. They were only on this plan for about 4 months. We originally thought that his father would claim him on his return, but I will now be claiming him. So, my son is listed on his father's 1095A. I understand that we will have to do a Shared Policy Allocation? How do I determine the percentages that we each claim?

jj13

Yes, that is a Shared Policy Allocation situation.  Read the above, and/or the information in the blue links in TurboTax to determine the percentages.

TaxGuyBill

@TaxGuyBill I shared health insurance (1095A) with dad (im not his dependant tho), he payed so Im allocating 0% to me, will my refund be held till my dad files (hes claiming 100%) or will I get my refund right away? My dad doesnt plan on filing till closer till April deadline so will my refund be held till than? Thank you!

dee

Hypothetically, it will not be held up, but it is difficult to know what the IRS does.

However, last year TurboTax was NOT filing Form 8962 in many cases when you claimed 0%.  As a result, MANY refunds were held up because the IRS had to send notices for people to send their 8962.

Although I do not know for sure if this problem was fixed or not, I doubt if it was fixed.  TurboTax was claiming everything was correct and the form was not needed, even though it was needed.  Because of that, it is doubtful if TurboTax fixed their problem.

TaxGuyBill

@TaxGuyBill My 20 yr old (non dependent) daughter has already filed and received the IRS notice to complete the form 8962 and provide copies of 1095A.  Her income is below poverty level, and I am needing to know if its more beneficial to allocate 100% to her.  Our family (5) owns a new small business, so our income was pretty low last year as well. (but not under poverty level)  We have not yet filed, but are using turbo tax, however she did not.  Any way of amending hers through turbo tax?  She only has 30 days to get documents sent, its already been 2 weeks.  TIA!

brytay1996

Also, by allocation of 100% to her, it should increase her refund and not affect ours - correct?

brytay1996

If it is allowed, yes, it would be more beneficial to allocate 100% to her.  However, as I said before, it's a gray area. I haven't heard of the IRS disallowing it, but the Regulations seems to indicate it MIGHT not be allowed.

Yes, she could amend through TurboTax, but it would be easier for her to amend through whatever method she used to file her original tax return.

TaxGuyBill

Thank you! Any idea where I can get a simple black and white answer on whether or not it is allowed? I am looking on IRS website and many others, and it is only getting more confusing.

brytay1996

@TaxGuyBill  Hello, I am a dependent under my parents. I was a student until graduation in May 2016. I later got a job which provided health insurance. Would the regular recommendation of allocating 100% of premium percentage still apply? I see that most of the comments are about non-dependents. Thank you!

jessicahao

If you are a dependent, health insurance information is not entered on you tax return.

TaxGuyBill

@TaxGuyBill  I'm pretty sure I filed as a dependent on TurboTax, but is there a way for me to check? I remember getting asked about insurance coverage for the year and I received a letter in the mail stating I needed to fill out form 8962.

jessicahao

@TaxGuyBill My wife and I, both retired, have a 25 yr old nondependent son on our ACA for 2017.  I am somewhat concerned that due to some IRA withdrawals (and a smaller loss carry forward) that I underestimated income to ACA for 2017.  Is the logic then to allocate some of the 1095 percentage to the son (I am doing both returns on TT so I can tweak the percentages based on your feedback...thx)?

tedmbrady1902

In most cases it is best to allocate 100% to one tax return, and it is usually best to allocate 100% to the child.

TaxGuyBill

@TaxGuyBill hi... me and my wife got married this year. my wife is under her parents insurance which is from their school and so she got one 1095-B with entire family listed.. i was on my own plan and got a 1095-A... so we are filing jointly do I just enter my 1095-A even tho only i was covered?

dee

Yes.

TaxGuyBill

thanks so just confirming on our joint return it will show my 1095-A which covered me and will show nothing about my wifes health coverage because she has a 1095-B.. is this correct? because I will now end up getting back money instead of owing money on my ATC (if i didnt file jontly).. so just wanted to make sure its correct @TaxGuyBill

dee

@TaxGuyBill Thanks.  So, when I allocate 100% to my son (and 0% to us, or some variation..I will tweak both returns) do I do so in all three boxes (your premium %, your SLCSP %, your advanced payment of PTC %)?  Is there a reason to NOT do so in all three boxes? Thx

tedmbrady1902

I am self-employed and I tied my 1095-A (which has my 2 sons that I was not able to claim as dependents) to my business so that I could receive the self-employed health insurance deduction, do I still have to fill out Part IV (allocation of policy amounts) on form 8962 even though I am claiming 100%.

rojas_06
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7 people found this helpful

If you were covered on your parents policy, but you were not listed by your parents as a dependent when they applied for healthcare from the Marketplace, you should be receiving a 1095-A.

According to the instructions for the 1095-A, if two or more tax filers are enrolled in one policy, each tax filer receives a statement reporting coverage of only the members of that tax filer's tax household.  Please see  IRS Publication 974, pages 16 & 17 for information on how to allocate policy amounts between different taxpayers.https://www.irs.gov/pub/irs-pdf/p974.pdf

Also, see TaxGuyBill's answer for a clear explanation. 

According to healthcare.gov, you'll get your 1095-A by early February. https://www.healthcare.gov/taxes/

You can go to the HealthCare.gov website or call 800-318-2596.

If HealthCare.gov was not the Marketplace you enrolled in a plan through, you can call 800-318-2596 and say the name of your state when prompted.

You can check your health plan member ID card to see if it has the HealthCare.gov (or other Marketplace) logo on it, or if it says QHP. If it does not, contact HealthCare.gov to see if you should receive a 1095-A.

Edited: 02/09/16


If you purchased health insurance in 2016 through Healthcare.gov or your state’s Health Insurance Marketplace, you’ll receive a 1095-A, Health Insurance Marketplace Statement.

  • It includes info on individuals covered, months covered and premium amounts.
  • It’s used to complete Form 8962 to determine the amount of your Premium Tax Credit.
  • It’s mailed to you by mid-February or available in your Marketplace online account.

You must have 1095-A info for everyone on your taxes who was enrolled in a Marketplace plan to file an accurate 2016 tax return.

 


GEN86824


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TurboTax TaxPro

I received a 1095-C and I cannot figure out the amount that was paid

goforth9

It also does not give me the plan identifier and code that I need to do my taxes. How can I get this I For?

goforth9

You do not need to enter your 1095-C on your tax return.  You just say YES, you had insurance, and NO it was not Marketplace insurance.

TaxGuyBill
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