Client purchased Marketplace insurance for herself and son in early 2016, using minimum anticipated income, and expecting to claim son on her return. Now I am preparing her return, she cannot claim son (he quit school and earned too much). Also, her income skyrocketed to $ 58,000 (insurance agent). I am preparing both returns. According to her form 1095-A, she received $ 5,159, advance payment of PTC, which, according to the return, she will have to pay back. BTW, she notified Marketplace in December of her change in income, and did not receive a tax credit for that month.
My question is, I think that I have to do a Shared Allocation on Part IV, and from what I have read, I can split it 50/50. But will this affect her amount to be paid back? It seems that a portion of her monthly premiums were for her son, so I am wondering if by doing the allocation, will she get to reduce her "payback"? I have not been able to figure out what to do with the allocation, once it is made. Also, how will her son's return be affected by the allocation. And lastly, how do I calculate her Self-Employment Health Deduction. Any assistance will be greatly appreciated.
My question is, I think that I have to do a Shared Allocation on Part IV, and from what I have read, I can split it 50/50. But will this affect her amount to be paid back? It seems that a portion of her monthly premiums were for her son, so I am wondering if by doing the allocation, will she get to reduce her "payback"? I have not been able to figure out what to do with the allocation, once it is made. Also, how will her son's return be affected by the allocation. And lastly, how do I calculate her Self-Employment Health Deduction. Any assistance will be greatly appreciated.
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