I just need to clarify allocating on the 1095A

[Just-Lisa-Now-]

So I know its talked about often, but Ive never had a situation where it needed to be done.

Parents have adult daughter on marketplace plan.   They got APTC.   Their income is high enough that they need to pay back a large chunk of that APTC.

Adult daughter has 25k in income.   If I allocate 100% to the daughter, and 0% to the parents, they avoid the pay back and the daughter picks up the additional PTC on her return?

This sounds too good to be true, but that sure seems like how Im reading it on page 18  Allocation example 4, of the 8962 instructions

@TaxGuyBill   I sent you a FB message about this, I cant seem to be able to tag your name in a message in this group, maybe youve got messages turned off both places?

[TaxGuyBill]

Yes, you can do that.

There is a slight gray area if the kid is under 100%, but that doesn't apply to your situation (and the IRS has allowed it since it started in 2014 anyways).

Yeah, I probably turned off messaging on this forum to avoid DIYers trying to message me.  As for Facebook, I didn't see anything and I don't know why you couldn't do that.  I get Direct Messages from other people.

[Just-Lisa-Now-]

I think its because we arent FB friends, my message landed in your "other messages" and you wont see it from a regular computer unless you go digging for it in your messenger app...no biggie.

Thanks for the clarification, it just seemed to good to be true! I figured there had to be a "but" in there somewhere!

[TaxGuyBill]

Oh yeah, I forgot that the Facebook thing doesn't show the red mark unless I've DMed with you before. 

The only "but" is that the parents are supposed to tell the Marketplace that the kids will not be a dependent, and the Marketplace is then supposed to send the dependent their own 1095-A for the next year.  But from what I've read, many Marketplaces won't do that even if the parents tell them the kid won't be a dependent.

[Just-Lisa-Now-]

The kid got a job that has medical benefits starting March 2022, so theyve already called in and removed her and updated their income for 2022.

Thanks again!