1095A SHARED ALLOCATION FORM

[j_ellamaa]

I am preparing a return with a 1095A. My client and his wife are the recipients of the form. They have both their children in their 20's on the 1095A in a family insurance plan. Both of those children file their own tax returns. I read many threads and the IRS page. My question is mostly about the software portion. The parents and children agreed to split the allocation 50% for the parents and 25% per child. I know the percentage needs to be the same all the way through. When filling out the 8962 it says "allocation of policy amount information should be entered at the bottom of the related form 1095A. When I follow the link and return to the 1095A it only has a spot for one childs SSN and the percentage. They are three separate families. How do I enter the other child? Or do I enter both children on the 8962 and leave the 1095A portion blank?

[TaxGuyBill]

Pick one.  It doesn't matter which.

Just to confirm, the children do NOT qualify as dependents, right?  It doesn't matter if they "file their own tax returns", what matters if they are eligible to be claimed as a dependent.

If they are all agreeable, it will likely have better overall results to allocate 100% to one tax return - the tax return with the lowest Federal Poverty percentage.

[j_ellamaa]

They do not qualify as dependents. They are not students and supported themselves 100%. 

When I go to enter both children on the 8962 it gives an error and says you can only add to the 1095A. But you cannot add two SSN on the 1095A. There is only one spot.

[TaxGuyBill]

As I said, pick ONE.  It doesn't matter which.

[j_ellamaa]

Tax Guy Bill,

I'm back after many failed attempts. This must be tax software issue which they cannot fix because I have reach out many times for the last 27 days. I have a 1095A with two parents as the recipients and two non dependent children. We have figured out allocation percentages and that is no longer my confusion. On the 8962 you can report up to FOUR ALLOCATIONS (but you cannot physically enter socials and percentages directly on 8962.. it does not allow you to. It directs you to use 1095a.) There is ONLY ONE spot on 1095A to report ONE SOCIAL and percentage info FOR ONE TAX FAMILY. I have THREE tax families linked to this one 1095A. Have you experienced this and any advice on how to proceed. So I can get all three tax families out of my hair? ( I have tried duplicating the 1095A that does not work.. I have tried to override 8962 that also does not work.. Technical support told me to use the marriage section which is incorrect.. Im running out of options.. I have consulted with other preparers using other software and they do not have this issue.. They can add up to four allocations on their 1095A). PLEASE HELP!!!  

[TaxGuyBill]

I've told you the answer twice.   There is no point in me saying it again.

[j_ellamaa]

Your answer is to report only one child’s social and not the other? That’s incorrect. 

[Tax Specialist]

I would also like to know how to proceed, I have a similar situation only I am trying to allocate different percentages for different months. Client did not get APTC for first 6 months and I believe I need to input a 67/33% based on clients situation.  I want to then allocate 100% for the second 6 months to the lowest income non dependent to maximize the PTC. I can’t enter these variables based on the same challenges that j Ella aa is having.  Please help, thank you!

[TaxGuyBill]

I would try entering it as two separate 1095-As (one for the first part of the year and one for the rest of the year).  If it were to give an error for duplicate Marketplace numbers, I would do something like add an "a" behind one of them.