How to Answer Form 8962 Shared Policy Allocation?
I am filing married separately for tax year 2014. My husband and I are going through a divorce. He enrolled the both of us, no children, through the market place Feb 2014 through Nov 2014. We are no longer on speaking terms. And because it was he whom enrolled us, I do not have any knowledge about the benefits itself. I cannot reach out to him to ask these questions either. How do I correctly answer the Shared Policy Allocation – Line 9? I can’t seem to move pass these questions.
The information for policy allocation is found in the 8962 instructions Part IV Allocation of Policy Amounts. You'll need a 1095-A (which is sent to the policy holder by the marketplace).
If you aren't on speaking terms and don't have access to the Marketplace then you may be able to get the needed information by calling your insurer directly.
You can look more into how to file without a 1095-A here.
The Premium Tax Credit form is at its trickiest when changes in martial status happen, that being said everything is covered in the IRS instructions when it comes to marriage, divorce, and other situations that require allocation.
Have you tried use the free assistance services offered by the IRS? This would be a good step to get direct help. For sure the easiest way to get this done right would be to coordinate with your husband, but hopefully the information on this page will give you some alternatives.
You can learn more about the 8962 form and instructions from our simplified guide as well.
AUTHOR'S NOTE: The IRS instructions go through all the different complex situations related to allocation with examples. I didn't do it here due to the complexity, but feel free to ask specific questions below.
I have a non dependent child that I had to cover with insurance because of her age for
part of 2015. She started a new job for the last half of 2015 and had her own insurance. Do I have to allocate the first part of 2015 on form 8962 for her insurance since she iis not a dependent for any of 2015 on my return? I cannot find the answer anywhere that addresses this.
If she isn’t a dependent then you don’t need to do anything with her coverage or income. Only need to file the ACA tax stuff for people in your “tax family”.
She on the other hand will need to file her own forms if she is above the tax filing threshold income-wise.
Keep in mind that you can’t count income for tax credits or a person for family size if they don’t file with you.
i had coverage on my 25 year old son for 3 months how do you figure out his percentage
allocate policy amount
The instructions on 8962 go over all this in detail. It’s a little heady, but it is all contained in the instructions.
I can’t find anywhere in the instructions how to fill out the 8962 for my non dependent child that I cover. I find how to file if my ex husband claims, etc, but my son is 25 and on his own, but I cover him under my insurance plan because I can. My 1095-A has him listed on it but how do I report it on his tax return when the policy is in my name?
From my understanding you have to claim the person in order to provide them coverage and get tax credits. Given that i’m not 100% sure how to answer this one. May want to seek professional advice.
It’s pretty complicated so I hope you can stay with me here. The percentage allocated can be an agreement between you and your son. If you decide that he will be responsible for the premiums during that time, then you can allocate 100% to him and 0% to you. Or you can decided to allocate 50% each during the three months. You would report this on Part II of 8962 noting the months that you are allocating. Now, on his tax return, he would have to note the same. Let’s say you two decided on 50% allocation, he now has to report he was covered through the marketplace and allocate the three columns as well. Once you decided on what percentile to go with, you will multiply that percentage and report it on Part I lines 12-23.
Hope this helps.
*****Correction, fill out Part IV for the allocation amounts*****
Why am I being asked to complete form 8962 for my child? I provided private insurance for him for the entire year and my ex-wife signed up for her entire family (my son making the family 7 people) without my knowledge. Now according to a letter from the IRS I have to claim the entire premiums for her entire family on my return and provide her 1095. I cannot seem to get any answers from the IRS or Marketplace.
Whoever files together owes the fee and has to file the form. If you aren’t filling for your son, then I don’t see why you would have to pay anything for anyone? The only burn is that the child was double-insured.
I don’t understand why the IRS would ask you to pay someone else’s bill. This seems fishy, you should get professional tax advice on this one.
My husband and I are filing together. He’s the only one that had insurance through the market place. He only had insurance from 1-1 to 2-28 and 10-1 to 10-31. I need help filing out the 2nd sheet
The market place can’t find the 1095a form for Oct. I don’t know what to do. Whether to send in the information or wait to be penalized
You can file for an extension, call healthcare.gov / IRS and get to the bottom of it, or review other options we laid out on the site. There is no great answer, but working it out with the marketplace is the right first step.
Two tax payers on same market place policy mother and a son, son gave the full permission to mom to climb APTC on her return then how to enter on form 8962 on page 2.And what to enter on son’s tax return form 8962 on page 2?
Not sure I get the question. 2a is household head’s MAGI, 2b is dependent MAGI, you add it together to get household income, then you compare to the federal poverty level. Make sure to follow the directions for where to find this on your 1040. https://www.irs.gov/instructions/i8962/ch02.html#d0e591
This is my circumstance. My policy covers myself, my husband, and 2 children who are not our dependents, twins who are age 24. My daughter received a letter from the IRS stating they wanted her form 1045 A and form 8962. She did not get a form 1045 A . i understand that I should enter the information from my 1095 A on my daughters return. My question is how do I
determine and fill out the Shared Policy Allocation information?
It isn’t easy. What is needed is 1095-A forms for anyone who had coverage so 8962 and 8965 can be filed properly. This form can be found through a person’s marketplace account, and should be mailed to the primary address.
Your best bet, if you can’t find it, is to follow up with healthcare.gov. If this doesn’t work, the next step is to contact the insurer for the information.
I am filing single and my son who has a 20 year old full time college student who lives with me on my policy. What is my Premium %, SLCSP % and Advance Payment of PTC %
You shouldn’t need to allocate in this case. You would just fill out 8962 normally per the instructions. So MAGI for a household size of two compared to the poverty level and the notate the months you had coverage and the amount of tax credits per your 1095-A.
This does not help, if the Ex won’t help, neither will the healthcare marketplace and the IRS will try but can’t do much.
I’m in a similar situation, if the Ex won’t help you’re stuck between a rock and a hard place
That is so frustrating. From the sidelines the questions about divorce, marriage, and coverage have all seemed very complex for the average person who is already dealing with an emotional time in their life. Don’t see a specific fault, just noting an overarching issue.
Hello! Taxpayer is non-dependent 24-yo daughter of Mom & Dad in separate tax household. M&D received 1095-A with subsidy for a family policy covering all 3. Non-dependent daughter doesn’t qualify for PTC subsidy. If M&D & daughter agree to allocate 100% to M&D’s return, is that OK? Or is daughter required to receive a 1/3 allocation? Thank you!!!
My wife and I have separate insurance policies through the Marketplace and did not realize we needed to fill out the 8962 Form. So, we are doing it now. Our 1095-A forms have different Monthly premiums and monthly APPTC. How do I calculate these for the 8962? Combine them together? Choose one?
Thanks for your help
I am the recipient on my form. My husband is listed on the form as “recipient Spouse”. My question is, do I have t fill out the same thing on one tax return for both of us or will one under my name (while filing jointly and not divorced or getting divorced) cover both of us? I filled it out under my name and it’s not asking for his to be filled out so I’m guessing it covers both of us since we’re on one forum and nothing was allocated but what I don’t want is for it to be returned and denied over something so trivial. Thanks for the help, hope my question isn’t too confusing.
I’m 25 years old and am filling independently. I had coverage through my parents for most of the year and am being asked to fill out the 8962 form with my parents 1095 A form. When I fill out the form, do I fill it out with my parents income, AGI, poverty line, etc. or my income and information?? I filled it out wrong last year evidently and I spent the whole year calling the IRS to fix it. Please help! Thank you!
How do I fill out 8962 if divorced and don’t want to claim credit for my child dependent? He is claiming credit..
If you aren’t a custodial parent, and thus aren’t claiming them as a dependent, or if they are claiming themselves, they fill out their own form (if needed). The 8962 directions describe the details beyond this. Essentially people in your household don’t count for much on your tax form unless they are in your tax family. This page should help: https://obamacarefacts.com/premium-tax-credit-form-8962/
I’m claiming my child just not health tax credit and IRS is wanting me to fill out form. My ex is cresponsible for healthcare and will claim tax credit. I basically need to say I’m claiming child but his dad is responsible for healthcare tax. So what do I fill out on form?
Please help, 2015 year I did claim my son as dependent as he was in college. So my 2016 marketplace INS he is on the policy as well. In aug 2016 he got a job and his health ins was a benefit. So therefore I did notify health marketplace and to have him taken off my policy. They did new app same policy number and premi actually raised but only couple dollars.
Doing taxes for 2016 not claiming him any longer, Have the forms for both policies, but tax lady needs percentage that was allocated to him. From Jan – aug. called agent, Called company, called marketplace, still no answer.
Until last year 2016 I was a dependent on my mom tax file return, she had an insurance for both of us all 2016 and never made any change. I started working last year 2016 and now I filled out my own tax return as a independant but is asking me for the allocation percentage, how much should I write?
I don’t have an exact answer, it would depend I think on when you started working (and whether or not you had insurance options through your employer).
Check out the 8962 instructions Part IV for details: https://www.irs.gov/instructions/i8962/ch02.html#d0e3366
wtf?! This is about as much of a non-answer as you can get.
How about an example that demonstrates the calculations on form 8962?
or reference who to call for an actrual answer
Thank you for the feedback.
I really do think that short of mimicking the great information already in the IRS instructions that the answer above is the best simple answer to the question (although I’ll see what I can do about making things simpler and providing more examples here).
When it comes to doing the allocation, you can’t beat the detailed explanations and examples of the instructions (https://www.irs.gov/instructions/i8962#idm140053807798832), when it comes to not being able to get the policy amount due to not having communication with the other person… it is tricky, but using the workarounds for how to get 1095-A information (https://obamacarefacts.com/2015/03/12/didnt-get-1095-a-or-ecn/) is the best way we know of.
We are also here to answer questions, but I would think the information one was looking for was in the links.
Also, as noted, you can always contact the IRS help line, marketplace, or get help from a tax professional.
I was a student in college and under my parents insurance. I graduated and got a 60K job but continued to be under my parents insurance. Our tax person did not educate us of all these inusrance tax credit issues. 2 years later the IRS sends me a letter stating i owe them $50,000 (you read that right) for using obamacare in 2017 and 2018. Funny thing is i never used the insurance. I was 25 years old in 2017 and 26 in 2018, so i was eligible to use my parents insurance.
If my father claims 100% of the permium allocation, would they only use his income to caluclate the penalty? His income is below poverty line. In other words, would him allocating 100% of the premium make this 50000 go away?
I really appreciate any help on this. All lawyers want couple of grands before even looking at the case. This is the first useful site I’ve seen.
That for sure doesn’t seem right to me. First off, your parents should get the bill since they got the tax credits and you were on their plan. Otherwise, this issue is overly complex and the fee too big for advice on the internet. I would seek assistance from a professional on this one. Likely will need to seek it with your parents as well since they are directly involved in the issue.