8962 shared policy allocation

[kathyc2]

Dad covered daughter for all of 2015 on ACA plan. Dad is not claiming daughter as dependent, Mom is. If Dad wishes to allocate PTC to himself, does Part IV need to be filled out? I'm seeing a detailed explanation in instructions if the allocation is other than 100%, but if there is one for 100%, I'm missing it.

If Dad allocates 100% to himself, does Mom need to do anything on her return other than checking box that daughter was covered?

[TaxGuyBill]

Both Dad and Daughter are covered on the same 1095-A, right?

If so, Dad and Mom need to agree to a percentage. If they don't agree, it is divided by the number of people on the plan (if Dad and Daughter are the only two people covered, it would be 50% each).

If they can agree, Dad can claim 100% on his tax return (yes, Part IV needs to be filled out). To avoid an IRS notice, Mom also needs to have the allocation section filled out on 8962, allocating 0% to herself/daughter.

"If 100% of the policy amounts are allocated to you, check “Yes” on line 9 and complete Part IV by entering 100 in the appropriate box(es) for your allocation percentage. If 0% of the policy amounts are allocated to you, complete Part IV by entering -0- in the appropriate box(es) for your allocation percentage. "

https://www.irs.gov/instructions/i8962/ch02.html#d0e3423

[kathyc2]

Well, shoot. Dad's return was accepted 3/29 but still shows as processing. Since I didn't complete part IV, do you think that's what's holding it up? Should I do a 1040X as a cover letter to submit the corrected 8962?

[TaxGuyBill]

There is an excellent chance that is what is holding it up. I suspect that either Dad will receive an IRS notice asking about it and/or it will be held until Mom files her return claiming 0%.

I probably would NOT do anything yet, but just wait another couple of weeks to see what happens. Until it has been processed, sending a 1040X or additional information is likely to confuse the IRS and potentially cause further delays or problems.