1095-A and Form 8962 PTC

[bglissontts]

So I have a woman that is divorced and remarried. She and her ex have a child together, and she claims the child every other year. So I prepare her and her new husbands tax return with the child as a dependent, and the return is rejected because no 1095-A or 8962 PTC.

Come to find out, ex-husband has an insurance plan through the marketplace aka Obamacare and the child is listed on the policy. I get a copy of the 1095-A and the policy is in her ex-husband name and SS#.

Has anyone ever had this problem before? 

I’m at a loss.

[Skylane]

@TaxGuyBill  Bill, can you help?

[bglissontts]

Ok I'm all ears.

[TaxGuyBill]

1. Does the 1095-A cover both the child AND somebody else (such as the ex)?
2. If yes, was there Advance credit (column C of the 1095-A)?
3. If yes to both of those, is the 'ex' willing to claim 100% of the 1095-A on his tax return?

If all of those are yes, then:

1. Enter the 1095-A on your client's tax return. 
2. Fill out the allocation section and allocation 0% to your client.  Lines 11-23 of the 8962 should show up as blank or zero, but the key is that line 30 is filled out.
3. Print the 8962 to a PDF.
4. Attach that PDF as an 'other' attachment to the e-file, and when picking a name for the 'other' attachment, call it "ACA Explanation".

If any of the first three are "no", let me know the details.

[qbteachmt]

I found this pretty thorough topic that reviews a lot of the considerations:

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/shared-policy-allocatio...

[bglissontts]

I don't understand how to prepare the 1095-A. When I open form 1095-A in pro-series it pre-populates the form with the taxpayer and spouse. The original 1095-A the was issued has her ex-husband and his new wife's name and SS#. So the policy number is under her X's name and SS#. 

[TaxGuyBill]

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@bglissontts wrote:

When I open form 1095-A in pro-series it pre-populates the form with the taxpayer and spouse. The original 1095-A the was issued has her ex-husband and his new wife's name and SS#. So the policy number is under her X's name and SS#. 

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You can ignore that.  None of that will show up on the 8962.

[howiedee]

Thank you for the solution; however to add one other hurdle;

The 1095A is owned by ex-husband, and he will not cooperate by giving a copy

How would I handle that

[TaxGuyBill]

I have read that some people have had success with the IRS and/or Marketplace giving out the necessary information. 

Otherwise, the other two options it to file it without and have the IRS make the proper adjustments, or the taxpayer can contact their divorce attorney.

[rcooley25]

I know that many of my fellow preparers who have replied to this  question know more than I do but in my humble opinion I think you client is SOL.

It is April 12th so if the others are right and you need to contact the divorce attorney I think it might be extension time. 

[kathycpa1]

1095A problem in Pro Series. Does anyone know how to add two social security numbers and allocations for two individuals in the shared allocation box?  Both left home after high school in 2022 and no matter what I try I can only get it to take one social security number!

If I add it directly onto 8962 it deletes the first social  and also errors.  Thanks for any help.

[TaxGuyBill]

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@kathycpa1 wrote:

1095A problem in Pro Series. Does anyone know how to add two social security numbers and allocations for two individuals in the shared allocation box?  Both left home after high school in 2022 and no matter what I try I can only get it to take one social security number!

If I add it directly onto 8962 it deletes the first social  and also errors.  Thanks for any help.

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Answered on your other post here:

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/re-1095a-proseries/01/2...