Shared Policy Allocation

3 replies
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I would really appreciate a second opinion. In 2025 Taxpayer had a son who was his dependent and his 1098 shows he was at least a half time student. Son earned 24K but lives in his father’s house and his father takes care of most of his expenses including his school. Son will be included in father’s 2025 tax return. Son has a 1095A and he is the only one on that policy. He got some subsidy but he paid for his share.

I want to put $ 0. allocation for the father and 100% allocation for the son. Can I do that or is there something that I am missing? Thank you very much in advance.

T

Terry53029

Intuit Community Champion

I believe because your client (Father) is claiming his college student son, then you have to put 1095A on fathers tax return, and even if father is not on policy you cannot allocate. They are a one tax family. Here is link to IRS instructions for 8962. https://www.irs.gov/instructions/i8962

A

AdriAuthor

Level 4

Thank you for your answer. So, even if the son files his own tax return and indicates in that return that he is his parents’ dependent , they are still considered a one tax family and not two?

T

Terry53029

Intuit Community Champion

Correct.

Tax family.

For purposes of the PTC, your tax family consists of the following individuals.

You, if you file a tax return for the year and you can’t be claimed as a dependent on someone else’s 2025 tax return.
Your spouse if filing jointly and your spouse can’t be claimed as a dependent on someone else’s 2025 tax return.
Your dependents whom you claim on your 2025 tax return. If you are filing Form 1040-NR, you should include your dependents in your tax family only if you are a U.S. national; a resident of Canada, Mexico, or South Korea; or a resident of India who was a student or business apprentice.

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