Determining SLCSP allocation on 1095-A form for child who graduated and was removed from plan end of May

Forum|Forum|1 year ago
April 7, 2025
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My oldest was on my healthcare plan at the beginning of 2024. After graduation, his job provided his healthcare so I removed him from my marketplace plan after May, leaving only myself and my younger son on the plan. How do I determine the SLCSP allocation for my older son who I removed? Can it just be 1/3 for columns A-C for the months of January through May? This then has to be added to his tax return since I am not claiming him as a dependent this year?

MAK70

Yes, you can allocate the policy as you indicated and he will have to add this information to his return since you are not claiming him as a dependent. Note: the IRS does not REQUIRE a pro-rata allocation, so if you want or are able to allocate 100% to yourself, there may be tax advantages (but this does require math).

chelmsAuthor

Thank you. Not sure I understand your comments in your Note.... If I can allocate 100% to me, what math is needed? Would I not just leave the same values that is on the 1095-A form. Afterall, while he was finishing his senior semester, he was my dependent but started working in June after graduation.

MAK70

If you allocate 100% to yourself, you may be responsible for paying back some of the Advanced Premium Tax Credit (APTC) because you are not claiming him as a dependent but it is dependent on your income. If he claims the 30%, depending on his income, he may have to payback ATPC. You have to compute the differences to see what the best advantage would be overall. @chelms