Announcement

Collapse
No announcement yet.

ACA policy sharing non-dependent child

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    ACA policy sharing non-dependent child

    Parents covered non-dependent child under age 26 on their policy. Child did not have employer coverage available to him.

    Am I correct that I can allocate 100% of it on parents return and 0% on child's return?

    Am I correct that child's wages are not reported on 8962 since he is not a dependent on their return?

    #2
    Correct (assuming they were all on the same 1095-A and they all agree to that allocation) and correct .

    However, they want to reverse that and allocate 100% to the child. If the child is at a lower poverty percentage (Line 5 of 8962), it would result in a higher Premium Tax Credit if the child qualifies for the credit (if Advance credit was received, the child's income can be below 100% of the FPL).

    Comment


      #3
      Originally posted by TaxGuyBill View Post
      Correct (assuming they were all on the same 1095-A and they all agree to that allocation) and correct .

      However, they want to reverse that and allocate 100% to the child. If the child is at a lower poverty percentage (Line 5 of 8962), it would result in a higher Premium Tax Credit if the child qualifies for the credit (if Advance credit was received, the child's income can be below 100% of the FPL).
      Why do they all have to be on the same 1095A? Parents and 2 other children are on 1 1095A and non-dependent child is on another 1095A that lists dad as recipient and mom as recipient spouse and kid as only covered individual. Col A has what looks like premium for kid only $205, col b is total SLCSP for family of 1661 and c is 149. Are you saying that because it's on a separate policy there can't be a choice how to allocate? I'll play around w/ the numbers but wanted to make sure that any allocation is allowed.

      Comment


        #4
        There is nothing to allocate because it has already been properly split (which is the way things are supposed to be done). One 1095-A goes on the kid's return, and the other 1095-A goes on the parents' return. You only allocate when the 1095-A covers somebody that is not on the tax return.


        However, you will need to enter the proper SLCSP for the kid and you should check if the SLCSP for the parents' family size is correct.

        Comment

        Working...
        X