BTS Posted March 20 Report Posted March 20 In 2023 a married couple with a 20 year old college student had Marketplace insurance (all three covered). Filed Mom and Dad and claimed Son (no college credits, full scholarship). Filed Son (who worked) and he didn't claim himself. No biggie. Well... Come this year, the son dropped out of college January 1st. Got a descent job and moved out in Feb., and bought a house. And... had a child with his live in girlfriend (does not work). Great he can file, claim himself, the child and girlfriend. He will get a nice refund. Well, Parents come this year with a 1095A in hand with Mom, Dad and Son listed on it. Delima is, I know the Sons return will be rejected once efiled and the error will say "efile database expects a 8962 or binary attachment with ACA Explanation must be present". I use Proseries and could go into the 1095A screen and check the box that No 1095A should not have been issued and attach the ACA Explanation. But, he was covered. Anyone have one of these situations ? Should I enter the parents 1095A info on his return too ? What's your take on how to handle it ? Quote
jklcpa Posted March 20 Report Posted March 20 (edited) When there is a 1095A with at least one person covered that isn't, or is no longer, a member of the taxpayer's household group, you have a shared allocation situation, and the parties involved are allowed to split the amounts on the 1095A at any percentage they wish as long as the same percentage is applied to all amounts for that month (premium, SLCSP, APTC), but I believe different percentages can be used for different months. They can choose 0% and 100% or any percentage in between that gives the best outcome. Each return will need to include its share of the allocated amounts. The 8962 instructions has at least one example of this. If you bring up the instructions as a pdf, just search for "shared allocation" using Ctrl-F and should find it easily. I think it is "Situation 4" as presented in the instructions. Can't help with the actual input on ProSeries though. Edited March 20 by jklcpa 4 Quote
BTS Posted March 20 Author Report Posted March 20 Thanks. I will look it over. I imagine the Son will use 0% Thanks again Judy. Quote
BTS Posted March 20 Author Report Posted March 20 Well can not do 0% on one and 100% on the other. If I do 0% then 8962 will not generate. Just gonna split it 67% and 33% and be done with it. Quote
Lion EA Posted March 20 Report Posted March 20 If son (or parents) are lower income, he might not have much/any payback and can take a higher %. Try a couple different ratios to see what is best for both branches of the family as a whole. If not 0%/100%, then 1%/99% or 50%/50% or... 2 Quote
kathyc2 Posted March 20 Report Posted March 20 Sometimes the insurance company will use 2024 and automatically renew 2025. Make sure to tell them to check to make sure son isn't on 2025 policy. 2 Quote
BTS Posted March 22 Author Report Posted March 22 On 3/20/2025 at 6:12 PM, Lion EA said: If son (or parents) are lower income, he might not have much/any payback and can take a higher %. Try a couple different ratios to see what is best for both branches of the family as a whole. If not 0%/100%, then 1%/99% or 50%/50% or... Found the sweat spot. 2 Quote
Lion EA Posted March 22 Report Posted March 22 Doesn't that feel good?! I love when I can work out, for instance, education benefits to make the most of tuition, scholarships, 529, AOC, etc. to keep the tax liability lowest for the family as a whole. 2 Quote
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