mircpa Posted March 18, 2015 Report Share Posted March 18, 2015 I prepared and efiled 1040 for a couple who got married in Aug 2014. Received notice from IRS requesting 8962 Taxpayer's wife was claimed as dependent under her parents tax return and 1095-A was issued in her dad's name along with her mom. I read instructions it is suggesting me to complete shared policy allocation or alternative calculation for year of marriage. Under 1095-A Part 3 from April until Dec amount is $ 4,329.00. Looks like dad failed to inform marketplace about his daughter's marriage in Aug 2014. After her marriage she was included in her husband's private health insurance. I am guessing she might have to repay allocated excess credit from Sep until Dec 25% of Column C Which option is bettter shared policy allocation or alternative calculation for year of marriage. Can someone guide me thanks Quote Link to comment Share on other sites More sharing options...
SaraEA Posted March 18, 2015 Report Share Posted March 18, 2015 One would think the subsidy for your client would be calculated based on her income before marriage and again after the wedding. Nope. It doesn't work that way. She either calculates her credit using their married filing joint income or, with the alternative calculation, dividing their joint income in half and using that as her income for purposes of determining what her credit should have been (if any). From reading the form itself I believe you only "allocate" when someone who is not on the parents' return is on the policy (like a 25 year old child still on their insurance). So the parents do the allocating. I've had this situation twice, and if the joint income (or half of it) is above 400% poverty level they will have to pay the entire credit back. There is no cap for over 400%. Came across that tidbit with married clients who apparently lied on the application or didn't understand it and understated their income. At $150k annual income, they aren't entitled to a subsidy yet they got one of over $1300 a month. It all gets paid back. 2 Quote Link to comment Share on other sites More sharing options...
mircpa Posted March 18, 2015 Author Report Share Posted March 18, 2015 Anybody else could provide me some guidance ? thanks to all who responds Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 19, 2015 Report Share Posted March 19, 2015 I think Sara gave you a good guidance.... unless you want to post income prior to marriage and after marriage for her and the total income on her joint return and form 1095-A. Quote Link to comment Share on other sites More sharing options...
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