Shared Allocation Form 8962

[Burke]

TP (parent) got APTC on his return for himself, spouse and 2 kids who were insured on the plan (under age 26).  Well, both kids made too much money to claim and filed their own separate returns.  Now IRS wants 8962 on the 2 kids and a copy of  their 1095.   They did not get their own 1095 since TP parent told Marketplace he was going to claim them.  Soooo, now they will allocate 100% of APTC to parent.  Instructions say if this is the case, do not complete 8962.  If I do complete 8962, whose percentage goes in Part IV?  No matter what I do, I can't get past ATX error checks when this form is part of their return.  It appears to be required ONLY if a certain percentage (other than zero or 100%) premium tax credit is to be applied to other persons. 

[Gail in Virginia]

Have you looked at allocating part of the APTC to the children?  It is my understanding that the 1095 can be allocated in any manner agreed on by the parties involved.  With the kids income as low as it most likely is, if you allocate 25% to each kid and 50% to the parents, how does that affect their bottom line tax wise as a family?  Or if you give more to the kids and less to the parents? Or less to the kids and more to the parents?I think that you may have an opportunity to save them some money based on the allocation chosen.

[Burke]

Yes.  Believe it or not, parents income (MFJ) is lower based on FPL % than the kids (Single).  Trying to get the mechanics of this form completion.  Kids took "0" APTC.