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Pioneer
Posts: 2
Registered: ‎03-05-2018

How to complete form 8962 when sharing marketplace insurence

I filled married-filling jointly with my husband (we got married in 2017). We are both under 26 and were on our parents' health insurance for 2017. My parents have insurance from the Marketplace. I received a letter from the IRS stating I need to fill out a 8962 and submit a copy of the 1095A. I have a copy of the 1095A, but I have no idea how to fill out the 8962 since the health care policy is shared. What is my family size - 6 (my parents and siblings) or 2(my husband and I). 

 

I went in the HR Block office and the four tax professionals had no idea how to fill out the form due to my sharing the policy. I have only a week left before I need to submit this. 

Council Member
Posts: 516
Registered: ‎04-06-2016

Re: How to complete form 8962 when sharing marketplace insurence

I've had to do this before from your parents side and I helped my son with his as well.

 

Fill out Part I. Your family size will be 2-- this is the number of people on your tax return. Then in Part II, you'll check "Yes" for question 9 about allocating premiums. This will tell you to skip to Part IV.

 

Part IV, enter the SSN of whichever of your parents is listed on the 1095-A. Allocation start and end months are entered as two digit numbers-- e.g. 01 for Jan, 07 for Jul-- and are the first and last months you were covered on that plan. In boxes e, f, and g put 0.  This means that your parents paid for the insurance and are taking all of the premium tax credits.  Your parents will likely need to fill out Part IV on their return, listing your SSN and putting 1 in boxes e, f, and g.  You'll want to check "Yes" on line 34 to multiply the amounts on the 1095-A by your allocation percentage (0).

 

I'm not exactly sure how this is accomplished in the software, but that's what you want to end up with.  Once you add that info, you should end up with a bunch of 0s in Part II showing that you didn't pay anything and aren't claiming any PTC as a result.

 

On the other hand, it's also possible for your parents to allocate part of the policy premiums and possible PTC to you.  In which case in boxes e, f, and g, you'd put the percentage your parents are allocated to you in as a decimal.  For example, if they're allocated 15% to you, and 85% to them. You'd enter 0.15 and they'd enter 0.85.

 

Good luck!

Karen

Pioneer
Posts: 2
Registered: ‎03-05-2018

Re: How to complete form 8962 when sharing marketplace insurence

Karen,

 

Thank you so much for all the info. I don't have to wait for our parents' accountant to get back to me. We leave for vacation soon and need to have this fax beforehand. 

 

I really appreciate the quick reply. 

Pioneer
Posts: 1
Registered: ‎03-09-2018

Re: How to complete form 8962 when sharing marketplace insurence

Thanks Karen,

 

I am facing the same problem as filling form 8962 form myself and two independent daughters which were listed in my 1095-A (Health Ins. Marketplace Statement).

 

H&R software does not interview and automatically fill out 8962 form. I have to open the form and manually fill it out.  Per IRS instructions, the allocation percentage in part IV for each person in 1095-A can be any agreed percentage among taxpayer, from 0% to 100%. However, H&R software won't allow a 0% allocation when it does the final check on the return. So I have to select 1% for my daughter.

I have to go back to part II to fill out Monthly Enroll Premium, SLCSP, and Advanced Payment of Premium Tax Credit, etc. - boxes a, b,, c, d, e & f - from line 12 to 23 (January thru December). Box c (Monthly Contribution Amount) was determined by the software in line 8b of the 8962 form, based on my daughter AGI.

 

My questions are:

1. Do I need to filled out every box (e to f) in part II? One of my daughter Monthly Contribution Amount = $0 - line 8b, so all rows and columns of boxes a to e are grayed out - could not be filled out. Only box f (Monthly Advance payment of PTC) is required to filled out in order to determine the Repayment of Excess Advanced of Premium Credit (Part III).

2. DO I have to include a copy of 1095-A in my Daughter return or I can file electrically thru H&R software?

3. In part IV of my daughter's return, do I have to list the allocations for all persons (taxpayers) in the 1095-A or just list the Allocation 1 for herself only?

 

 

Thanks,

 

Hugh

Council Member
Posts: 516
Registered: ‎04-06-2016

Re: How to complete form 8962 when sharing marketplace insurence

I've replied in the body of your message below in blue.  Let me know if anything isn't clear, or if you have other questions.

Karen

 


@HughFarmswrote:

Thanks Karen,

 

I am facing the same problem as filling form 8962 form myself and two independent daughters which were listed in my 1095-A (Health Ins. Marketplace Statement).

 

H&R software does not interview and automatically fill out 8962 form. I have to open the form and manually fill it out.  Per IRS instructions, the allocation percentage in part IV for each person in 1095-A can be any agreed percentage among taxpayer, from 0% to 100%.

This is true-- you can decide how to allocate the premiums.  

However, H&R software won't allow a 0% allocation when it does the final check on the return. So I have to select 1% for my daughter.

I have to go back to part II to fill out Monthly Enroll Premium, SLCSP, and Advanced Payment of Premium Tax Credit, etc. - boxes a, b,, c, d, e & f - from line 12 to 23 (January thru December). Box c (Monthly Contribution Amount) was determined by the software in line 8b of the 8962 form, based on my daughter AGI.

 
You'll fill out Part IV as follows:

For each of your Daughters:

On line 30, each of your daughters will put the policy number from your Form 1095-A in box a, your social security number in box b (It should be the SSN listed on the 1095-A as that of the policy holder), '01' in box c assuming the policy started in January (month 01) if not, enter the 2-digit number of the month, '12' in box d, assuming the policy ended in December (month 12), if not enter the corresponding 2-digit number of the last month the policy covered.  In boxes e, f, and g, they'd each enter the amount of the policy amounts that have been allocated to them. The allocations should be listed as a decimal percent, so 1% would be entered as 0.01. 100% would be entered as 1.

 

They do not list their sister's allocations anywhere.  They just list their percent of the total allocation in Part IV.

 

After completing Part IV, they should multiply each of the numbers on the 1095-A by their allocation percentage and enter them in Part II.  So if there was a monthly enrollment premium of $1000, then you'd multiply that by 0.01 (or 1%) to get $10 and enter that in the appropriate column of Part II.

 

For YOU:

On line 30, you will put the policy number from your Form 1095-A in box a, the social security number of either of your daughters (it doesn't matter which one, since they'll both link their returns back to yours by putting your ssn on their forms) in box b. Just like with your daughters, you'll put '01' in box c assuming the policy started in January (month 01) if not, enter the 2-digit number of the month, and '12' in box d, assuming the policy ended in December (month 12), if not enter the corresponding 2-digit number of the last month the policy covered.  In boxes e, f, and g, you'll enter the amount of the policy amounts that have been allocated to YOU. The allocations should be listed as a decimal percent, so 98% would be entered as 0.98. 100% would be entered as 1.

 

There's an example here:  https://taxmap.irs.gov/taxmap/pubs/p974-008.htm . Scroll down all of the way to the bottom of the page; it's the last scenario.


My questions are:

1. Do I need to filled out every box (e to f) in part II? One of my daughter Monthly Contribution Amount = $0 - line 8b, so all rows and columns of boxes a to e are grayed out - could not be filled out. Only box f (Monthly Advance payment of PTC) is required to filled out in order to determine the Repayment of Excess Advanced of Premium Credit (Part III).

Yes, you'll need to fill out every box in part II (a-f) making sure to multiply the numbers on the 1095-A that you received by the allocation percentage you've allocated to your daughter. I'm not sure why H&R block is graying those out. In fact, I'm not sure how you're getting a monthly contribution amount of $0 on line 8b unless your daughter's MAGI is less than about $300. In which case I'm wondering why she's filing a return at all. 

2. DO I have to include a copy of 1095-A in my Daughter return or I can file electrically thru H&R software?
No, you don't need to include a copy of the 1095-A with your daughters' returns. The IRS will already have that info in their system. (And they'll know if your daughters don't file the the 8962.  If they don't file it with their returns, the IRS will just send them a letter notifying them that they didn't include it with their return and instructions to fill it out and send it in.-- This is what happened with my son the first year. I just assumed that since we were paying all of the premiums, etc, that he didn't need to do anything.  The IRS sent the letter, we filled out the 1095-A with his 0 allocation, mailed it in, no worries.  Since he had 0 allocated to him, there was no change in PTC to owe or pay.) This may be one way to get around H&R Block not allowing you to allocate 0 to your daughters.  Just be prepared to have the IRS come asking for the form.

3. In part IV of my daughter's return, do I have to list the allocations for all persons (taxpayers) in the 1095-A or just list the Allocation 1 for herself only? answered above.

 

 

Thanks,

 

Hugh


 

Pioneer
Posts: 1
Registered: ‎04-14-2018

Re: How to complete form 8962 when sharing marketplace insurence

Karen - Your responses are very very helpful.

 

I am a covered individual on my father's marketplace policy. He paid for all of the premiums.

Can you confirm that for my 8962 form, in Part IV, line 30, boxes e, f and g should be 0?

 

thanks again

 

 

Highlighted
Council Member
Posts: 516
Registered: ‎04-06-2016

Re: How to complete form 8962 when sharing marketplace insurence

Yes, your father's SSN would go in box (b) and you're percentages of 0 would go in boxes e, f, and g.  There have been reports of H&R Block's software not accepting a 0, though. I'm not sure how to get around that other than filing your return without it and being ready to send the 8962 and 1095-A to the IRS when they send you a letter asking for it (which could delay any refund you're expecting), or putting 0.01 and taking 1% as your allocation.  That would mean that your father would have to report his allocation as 0.99 or 99%.   

Karen

@WATERdown12 wrote:

Karen - Your responses are very very helpful.

 

I am a covered individual on my father's marketplace policy. He paid for all of the premiums.

Can you confirm that for my 8962 form, in Part IV, line 30, boxes e, f and g should be 0?

 

thanks again