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Posted

Together their net income was low enough to get into a marketplace plan.  They had the plan for 3 months and then they dropped the plan when they split.  She got a better job so her income is better than last year.  He worked less and his income went down.  

Do I make the allocation of the 1095 figures on 8962?  It hurts her and helps him.  Or can I just give it all to him?  Is there any particular rule on this?

Posted

They can allocate it using any percentages they want as long as they are in agreement. They must use the same percentages for all of the months. Yes, you could give 100% to him and 0% to her.  If they can't agree, then it is split 50-50 to each.  The following is from the 8962 instructions.

Quote

Allocation Situation 1—Taxpayers divorced or legally separated in 2024.

You and your former spouse must allocate policy amounts on your separate returns to figure your PTC and reconcile it with your APTC if both of the following apply.

You and your former spouse were married to each other at some point during 2024 but were no longer married to each other at the end of 2024.

For 1 or more months of marriage, you and your former spouse were enrolled in the same qualified health plan, or you or an individual in your tax family (as shown on your tax return) was enrolled in the same policy as your former spouse or as an individual in your former spouse's tax family.

You will allocate between you and your former spouse the total enrollment premiums, the applicable SLCSP premium, and APTC for coverage under the plan during the months you were married. You will find these amounts on your Form(s) 1095-A, Part III, columns A, B, and C, respectively. You and your former spouse may agree to allocate any percentage (from 0% to 100%) of these amounts to one of you (with the remainder allocated to the other), but you must allocate all three amounts using the same percentage. If you do not agree on a percentage, you and your former spouse must allocate 50% of each of these amounts to you and 50% of each to your former spouse.

Policy amounts allocated 100%.

If 100% of policy amounts are allocated to you, check “Yes” on line 9 and complete Part IV by entering 100 in the appropriate box(es) for your allocation percentage. If 0% of the policy amounts are allocated to you, complete Part IV by entering -0- in the appropriate box(es) for your allocation percentage.

 

  • Like 4
Posted
1 hour ago, kathyc2 said:

You said split instead of divorced.  If divorce was not final by year end there are very limited circumstances where MFS can receive any credit. 

The topic heading did say "divorce"

  • Like 3
Posted
3 hours ago, jklcpa said:

They can allocate it using any percentages they want as long as they are in agreement. They must use the same percentages for all of the months. Yes, you could give 100% to him and 0% to her.  If they can't agree, then it is split 50-50 to each.  The following is from the 8962 instructions.

 

This is extremely helpful information.  Thanks Judy.

  • Like 1

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