I am currently a member on my parents insurance policy and they received the benefit of advanced payments of the premium tax credit. My mother received the 1095-A form and filed that with her taxes for the 2014 financial year. My wife and I filed our taxes jointly, independent of my parents or hers. I have received a letter stating that i Need to file an 8962 Form utilizing the 1095-A form from my mother. I do not understand why I need to do so when the policy is in my mothers name and she makes all the payments for the account. My younger siblings also filed their taxes independently of my parents. My brother was required to provide the 1095-A form but did not have to file the 8962 form. My sister wasn’t even asked to provide the 1095-A form. So I am confused as to why I need to fill the 8962 form or provide the 1095-A form when the policy is in my mothers name and she makes all the corresponding payments. I would appreciate any assistance offered.
Tax credits are based on household income, anyone in the tax family can join a family plan (coverage family) and share tax credits. The problem here is that everyone is filing separately, but sharing a family plan. From what we understand that poses a problem for claiming premium tax credits. So the bad news here is that you are supposed to be filing as a family. The potentially good news is that we don't think you have to file 8962, just simply check off line 61 on your 1040 for having coverage. Think the only person who is really going to have trouble here is your parents.
We may be missing some exception for this. So if you figure out something we don't know please post it below. Here is an easy to read post from HealthCare.Gov explaining who can and can't be included in a family plan.
Below are some key rules from the 8962 instructions:
Who Must File- You must file Form 8962 with your income tax return (Form 1040, Form 1040A, or Form 1040NR) if any of the following apply to you.
- You must file Form 8962 with your income tax return (Form 1040, Form 1040A, or Form 1040NR) if any of the following apply to you.
- You are taking the PTC.
- APTC was paid for you or another individual in your tax family.
APTC was paid for an individual (including you) for whom you told the Marketplace you would claim a personal exemption and neither you nor anyone else claims a personal exemption for that individual. See Individual you enrolled for whom no taxpayer will claim a personal exemption under Lines 12 through 23—Monthly Calculation, later.
If any of the circumstances above apply to you, you must file an income tax return and attach Form 8962 even if you are not otherwise required to file. You must file Form 1040, Form 1040A, or Form 1040NR.
If you are claimed as a dependent, the person who claims you will file Form 8962 to take the PTC and, if necessary, repay excess APTC for your coverage. You do not need to file Form
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Tax family. For purposes of the PTC, your tax family consists of the individuals for whom you claim a personal exemption on your tax return (generally you, your spouse with whom you are filing a joint return, and your dependents). Your personal exemptions are reported on your Form 1040 or Form 1040A, line 6d, or Form 1040NR, line 7d. Your family size equals the number of individuals in your tax family. If no one, including you, claims a personal exemption for you, and you indicated to the Marketplace when you enrolled that you would claim your own personal exemption, see Pub. 974 for instructions on completing Form 8962.
Household income. For purposes of the PTC, household income is the modified adjusted gross income (modified AGI) of you and your spouse (if filing a joint return) (see Line 2a, later) plus the modified AGI of each individual in your tax family whom you claim as a dependent and who is required to file a tax return because his or her income meets the income tax return filing threshold (see Line 2b, later). Household income does not include the modified AGI of those individuals whom you claim as dependents and who are filing a 2014 return only to claim a refund of withheld income tax or estimated tax. If your household income is less than zero, enter -0- on line 3.
Coverage family. Your coverage family includes all individuals in your tax family who are enrolled in a qualified health plan and are not eligible for minimum essential coverage (other than coverage in the individual market). The individuals included in your coverage family may change from month to month. If individuals in your tax family are not enrolled in a qualified health plan, or are enrolled in a qualified health plan but are eligible for minimum essential coverage (other than coverage in the individual market), they are not part of your coverage family.
Your applicable SLCSP is the SLCSP that applies to your coverage family. As a result, your PTC is only available to help you pay for the cov