Question

Help Filling Out Form 8962 (Premium Tax Credit)

Forum|Forum|4 years ago
April 15, 2022
1 reply
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My husband and I signed up for a Marketplace insurance plan last year in April through an agent. At the time our son was 18. He turned 19 in November and made over $4,300 in 2021. We were under the impression that we'd still be claiming him as a tax dependent for the 2021 tax year, but since he made over $4,300 that isn't possible (we weren't aware of the $4,300 threshold). Because of this, our agent has now told us that he wasn't eligible to be a dependent on our insurance plan since he isn't a tax dependent.

I'm trying to figure out how to input this information into TurboTax so that it shows up correctly on Form 8962 for the Premium Tax Credit. I want to be sure that the numbers are put in correctly so that whatever was paid that shouldn't have been is paid back correctly and we won't have any issues.
I'm wondering if I should select "yes" to where it asks if we shared a policy with someone else. Then, what am I supposed to do when it asks how to allocate the policy amounts?

This part of our taxes is confusing me to no end and I'm wondering if the TurboTax software is even going to cover our situation. Thanks in advance for any advice.

DaveF1006

Yes, if you shared the policy with your son, you will need to indicate that you shared the policy on his tax return. You will need to allocate your shares and he will need to report on his tax return his share of the allocation. He will need a copy of your 1095A to report on his tax return. Here is how to report.

After you enter your 1095 A with the full amounts in Column A,B, &C, the program will then asked who the other taxpayer is including his social security number. You will then enter your allocated percentages for column A, B, & C and the program will adjust the amounts in each of the columns in form 8962.

Your son will repeat the exact same procedure on his return.

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