1095-A Shared with my son

shah123

In my household, my oldest one started working in the middle of Jan last year, and he is not my dependent anymore. He even lives separately in different city. But for the month of Jan, I kept him on my marketplace insurance. Starting Feb I removed him from my marketplace insurance since he was going to have his own insurance.

Now I have got a 1095-A and it list all of us including him, and of course the numbers for Jan are slightly higher than the numbers for the rest of the year. I did not have to pay any premium out of my pocket. It was fully covered for the entire year.

Now he is filing his own taxes as not my dependent, and I am not including him as dependent. How do we report 1095-A on 8962? I don't want either one to end up in paying anything out of pocket. I can report for the whole year, but he was on there only for one month. He can report from Jan to Jan (in the drop down) but how does he report each month row. We want to keep the split 100% and 0% between the me and him.

Any help will be appreciated

Austyn

Hi shah123,

This is a common situation when someone is covered for part of the year, and the good news is you can allocate the policy between your returns.

Since you received all the advance premium tax credits throughout the year and he wasn't your dependent, the cleanest approach is for you to report 100% of the policy and for your son to report 0%. Here's how this works:

On your return: Enter the full 1095-A for all 12 months at 100% allocation. Navigate to Deductions/Credits > Marketplace Health Insurance (Form 1095-A) and enter all the information exactly as it appears on the form. Make sure to mark 'Yes' to the question asking, 'Do you need to allocate your premiums on this Form 1095-A between two different tax returns?' The system will generate Form 8962 reconciling all the advance payments you received. Since you received all the credits, you'll reconcile everything on your return.

On your son's return: He should indicate he was covered by marketplace insurance in January but allocated 0% of the policy to himself. This satisfies his coverage requirement without claiming any portion of the premium tax credit. Since he's taking 0% of the credit, he won't owe anything back.

The IRS allows you to allocate the policy tax credit however you agree, as long as the total equals 100%. Since he wasn't your dependent and you received all the advance credits throughout the year, you taking 100% and him taking 0% keeps everything reconciled on your return where the credits were paid.