Form 1095-A Shared Policy Allocation

[TCl]

I have a new client who’s accounting firm had allowed the following allocation of 0% to Parents and 100% to the Nondependent Child:

• Parents
• 2 Children (1 is a dependent and 1 nondependent)
• 1095-A issued to Parents (4 covered)
• In 2022 – they Allocated 100% to 1 nondependent child and 0% to the parents
• Parent had a large Excess Advance Premium Tax Credit Repayment due on the tax return

I do see where, if both filers agree to the allocation, that is fine. This just seems really too good to be true.

Has anyone dealt with this before?

[terryats]

It is a loophole and is legit. I have used it several times, and no issues

[DoubleO]

You just need to be sure that no one on the policy was offered affordable MEC through an employer, including the non-dependent child. If they were,you need to make appropriate adjustments to the SLCSP for that (those) individuals for the months they were offered the affordable MEC.