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05-06-2017 07:32 PM
The result of allocating based on your premiums is below. However, in order to avoid a repayment I would allocate 0% to yourself. The first part of your form 8962 should be filled in as shown below and then lines 12 through 23 should be left blank. Then fill in Part IV with your information and 0% for yourself, your brother's information, and your dad's information. Your brother and your dad will need to determine how to allocate the policy between them as you must include their percentages of it in their information in Part IV. You can enter 50% for each of them for right now and the IRS will adjust it later if necessary. I would have done a 33% allocation to see how that comes out but it will come out with a repayment no matter what so for you the 0% allocation will yield the best outcome and I think that's the way you should go since you were not the one who signed up for the policy.
YOUR FORM 8962, PART 1
(1) Family size = 1
(2A) Modified AGI = $27,551
(2B) Dependents' MAGI = Leave Blank
(3) Total household income = $27,551
(4) Federal poverty line = $11,770
(5) FPL percentage = 234
(6) Is percentage on line 5 greater than 400%? = NO
(7) Percentage figure = 0.0761
(8A) Annual contribution = $2,097
(8B) Monthly contribution = $175
(9) Are you allocating policy amounts with another taxpayer? = YES
YOUR FORM 8962, PART II
(12) A = $160.99 B = $114.12 C = $175 D = $0 E = $0 F = $109
(24) Total premium tax credit = $109
(25) Premium tax credit allowed = $0
(26) Premium tax credit with return = $0
(27) Excess premium tax credit received = $109
(28) Repayment limitation = $1,275
(29) Repayment of premium tax credit due = $109
05-07-2017 01:53 PM - edited 05-07-2017 02:06 PM
I filled Part 1 in as you suggested.
Part 2 & 3
I filled in Line 12 as instructed. But in the paragraph above, you said to leave Line 12 blank. Do I need to fill in anything for Line 11?
Was one of them supposed to be Line 11? Lines 13-23 are blank. 24 says to enter amount from 11(e) which is currently blank or add 12(e) thru 23(e) which would be 0; however, we said to put 109 for Line 24. Line 25 says 11(f) (currently blank) or 12(f) thru 23(f) which would be 109;however, we said to put 0 for Line 25. All this would make Line 26 109, but we said to put 0 for that one. I feel like there might be a small inconsistency in Lines 11 or 12, but I can't be sure. Let me know what you think?
Do I fill in Allocations 1, 2, and 3 with my, my dad's, and my brothers information?
Also, for example, Line 30...
(a), (b) are straightforward. What should I be putting for (c), (d), and would my (e), (f), (g) all be 0? If so, would dad and brother have the same (c), (d) and would their (e),(f),(g) all be 50%, 50%, 50%?
I think if I can get these last questions answered, I will be able to finish this thing! Thank you again for your help thus far.
05-11-2017 05:09 PM
Yes, you'll fill in part IV with your information, your brother's information, and your dad's information.
If you remember, I figured 15% based on what only your part of the premiums cost as figured through the marketplace. However, you can use a 0% allocation for yourself if you would like since you did not sign-up for marketplace insurance yourself, in which case you would leave Part II of Form 8962 completely blank and skip straight to part IV. If you use a 0% allocation for yourself then you will not have a premium tax credit repayment.
Everything on Lines 12 through 23 can be left blank. I tend to forget that the software does not like zeroes. If you go with the 15% allocation then you would have $109 on Line 12 in Column F of Form 8962 and all other boxes left blank until you get to Line 24.
Line 11 of Form 8962 should be left blank (it would only apply if you had the same amount for all 12 months of the year).