entering 1095A involving children who move out

[bhood]

daughter receives 1095a for first 4 months then get a job and moves out under her own medical plan how to show coverage for the first 4 months on the daughters return as she is filing single and no longer a dependent.  She has insurance for the remainder of the year, but the 1095A from her parents will become an issue.

[TaxGuyBill]

1. What exactly are you asking?  How to enter it in Lacerte?
2. Is the daughter the only "covered person" on the 1095-A?
3. Does the 1095-A show that she was covered for only 4 months, or was she covered for the entire year?
4. Was Advance credit paid (column C of the 1095-A)?
5. Approximately how much is the daughter's income for the year?

[bhood]

Hi Tax Guy so we are having issues with kids moving out of the parent's home and no longer being dependants.   The parents in this case and others are showing 2 kids (one being the adult no longer a dependant but under 26)   She had insurance with the parents under CA cares and they received a 1095A listing the adult daughter for the first 4 months of the year.  The daughter then obtained a job and full medical coverage as part of the new job getting a 1095B for the remainder of the year.   Because she is listed on the 1095 A the feds will kick back the return for not listing the 1095A on her return as she did have coverage.    I think the solution may be answered in this post from 2016.   I also had a potential client ask for help similar situation and because she was covered on the parents 1095A return (she was under 26)  the feds questions her for not addressing the 1095A, and when she sent them a copy of the parents 1095A showing her they assessed her to repay the full amount because she earned to much to be covered.   That made her repay the parent's full medical coverage.

How does my son (non-dependent) deal with healthcare on his
taxes when I paid for his coverage through the marketplace (on the plan with my husband and dependent son)?

In 2016, I covered/paid for marketplace healthcare to cover my husband, dependent son, and non-dependent son. I included the 1095-A on my tax return and repaid 100% of the subsidies. My non-dependent son needs to prove healthcare coverage on his own tax return; however, when he indicates that he had a marketplace plan, it asks him for percentages, etc. He didn't pay for any of his healthcare. What do we do?

answer     second lowest cost Silver plan (SLCSP) premium

Your son will need of your 1095-A. He will indicate that he shared this policy with someone who is not on his tax return.  

On your tax return, you will indicate the same information.

You will have to find what the SLCSP is for each person's household and add it up. Then, divide your SLCSP by the total SLCSP to get your percentage of premiums and advanced payment of the premium tax credit.

In allocating any Advance Credit received, you have the option to claim 100% of the 1095-A on your tax return, or you can allocate part of it to your son.  The allocation can be anywhere from 0% to 100%.  You both must agree to the allocation.

[bhood · Accepted solution]

So I solved the issue because the daughter was on the parent's 1095A, for a few months and had her own insurance the rest of the year.  There is a box in Lacerte shared policy allocation for part IV.  I had to enter her as a -1 and the parents on their return as a 1 crosslinking their SS numbers on the other's return.    Otherwise, they end up paying a penalty for income earned.  

[swongtax]

I have a follow up question:

"In allocating any Advance Credit received, you have the option to claim 100% of the 1095-A on your tax return, or you can allocate part of it to your son.  The allocation can be anywhere from 0% to 100%.  You both must agree to the allocation."

Can the allocation work like this?  The parents allocate 0% on their tax return, and the non-dependent child claims 100% on his/her tax return?

Thank you!

SW

[TaxGuyBill]

Yes, if the parents and the non-dependent child agree, it can be done that way (and in many cases that is the best way to do it).