The taxpayers received Form 1095-A showing Monthly Advance payment of premium tax credit. There is an adult child (25 years old) on that policy and she must file her independent return.
Do I have to allocate policy amounts between the taxpayers and that child or can taxpayers/parents choose to claim 100% of the policy amounts on their return?
Allocating is allowed. You can do it in the manner that produces the best combined tax result
The best result would be if the taxpayers claim 100% of the total amounts and the child 0%. Would 100% to 0% be reasonable?
Reasonable is irrelevant.
Yes, it's allowed
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