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02-03-2018 10:25 AM
My 24 year old son had insurance on my marketplace policy for the entirety of 2017. He was married in Dec 2017 and wants to be able to file married Joint so not as a dependent on my return. Since he was on my marketplace policy I know there are penalties from the Advance Tax Credit if I don't include him as a dependent. How can I calculate that? I've called The Marketplace and they were not able to tell me how to compute. The HR Block program is not making the adjustment. It appears that I will have to file and then get a bill back but that doesn't sense. How can the penality from the aaaaaaaaaaaaadvance tax credit be calculated?
Solved! Go to Solution.
02-18-2018 05:17 PM
Welcome to H&R Block Community.
The H&R Block online program and the software vary in the questionnaire section; however, you should see a question like the following, “Did anyone in your household share a marketplace policy with someone who’s not in your household?” You will need to make sure that you check “Yes.”
The software does not support this option, and the IRS requires that you paper file your return with the Form 8962 attached. This could be why you are not seeing an adjustment computed. This needs to be paper filed because you are allowed to determine your allocation of the amounts between you and your son and decide what is most beneficial for each of you.
For your specific situation, on Form 8962 you will want to answer “Yes” next to “Yes. Skip to Part IV, Allocation of Policy Amounts, or Part V, Alternative Calculation for Year of Marriage.” In Part IV, Allocation of Policy Amounts, you will need to allocate the Premium Percentage, SLCSP Percentage, and Advance Payment of the PTC Percentage. This can be allocated however you wish, as long as you and your son report the same allocation on both of your Forms 8962.
I hope this helps you out! Please ask if you have any further questions.
Tax Research Specialist