ACA policy sharing non-dependent child

[kathyc2]

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?

[TaxGuyBill]

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).

[kathyc2]

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.

[TaxGuyBill]

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.

https://www.irs.gov/instructions/i8962/ch02.html#d0e2240

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.

https://www.healthcare.gov/tax-tool/