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8962 allocation of premiums

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    8962 allocation of premiums

    Client files MFJ. 1095A issued to HW and daughter. Daughter files separately and is not a dependent. Does the client need to do an allocation of the premium in the form 8962. Does daughter have to report the premiums separately?

    #2
    The premiums can be allocated anyway the 3 individuals choose. I work it out, in your example, by giving 100% of the 1095A to the MFJ and giving the daughter 0. Then I work it by giving the daughter 100% of the 1095A and 0 to the Parents. Then I allocated whichever way works out best for the family.

    Dusty

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      #3
      I agree with Dusty, from what I've seen it is always best to allocate 100% to one tax return, and you can try it out both ways to see the best overall result.

      A few minor 'catches' with that: (1) All parties must agree to the percentages. If they do not, then it is split evenly between the people (if two people are covered, then 50% each) and (2) Both tax returns must report a Form 8962 showing the percentage, even if one party is claiming 0%. (3) Make sure the taxpayer knows they are required to contact the Marketplace to tell them that the daughter is no longer a dependent.

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        #4
        If HW in this scenario are over 400% of FPL, are they still considered ACA "applicable taxpayers" who are eligible to allocate 0% to themselves and 100% to their non-dependent daughter?

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