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FORM 8962 – ALLOCATION OF POLICY AMOUNTS

Chris_4325
Level 2

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?

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3 Comments 3
abctax55
Level 15

Allocating is allowed.  You can do it in the manner that produces the best combined tax result

HumanKind... Be Both
Chris_4325
Level 2

The best result would be if the taxpayers claim 100% of the total amounts and the child 0%. Would 100% to 0% be reasonable?

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abctax55
Level 15

Reasonable is irrelevant.

Yes, it's allowed

Search for @TaxGuyBill 's numerous posts on this subject

HumanKind... Be Both