Question about allocating 1095-A
on form 8962
between parents return
and independent daughter who files her own return but was on the same marketplace health insurance as her parents. The daughter didn’t receive a separate 1095-A as the insurance wasn’t notified that she was not a dependent
purposes and is simply listed as a covered member under her parents 1095-A form
The greatest tax benefit
would be to allocate 100 % of 1095-A (columns A through C) to the daughter who makes a much smaller income
(although she is above the poverty line). And the parents will accordingly enter their 1095-A info on form 8962 but allocate 0 percent to them since the daughter will have already taken the full allocation.
Also important to note – there was a monthly advance payment of premium tax credit
(column C) paid throughout the year of nearly $8,000. Based on the daughters low income level, the refund that she’d be due just from allocating 100 percent to her on form 8962 would be over $4,000 as she would basically be due near the max credit which I believe is over 12,000 (12K – 8K already received = 4K refund).
I don’t yet have the exact scenario of the parents return because they haven’t filed yet but it would obviously be a much smaller refund owed from 8962 if all or a portion was allocated to them.
Will the IRS
allow this allocation method of 100 to child
and 0 percent to daughter in this scenario?