B. Jani Posted March 1, 2016 Report Share Posted March 1, 2016 Client husband, wife and junior (24years old) for first 9 months health insurance thru exchange for all 3 and qualified for APC. Junior got job with health benefit from employer so parent removed him from there health insurance through exchange for last 3 months of the year. Junior made more then 14k in 3 months so parent cannot claim him as child or relative due to income test and also he was not in college. Problem is due to 3 together for the first 9 months, parents qualified for APC $250 a month. Now Junior out on his own and filing his own return, parents income does not allow APC and have to return all APC. Any options or opinion on how to work with ATX MAX as junior's income create a loss of $3000 to parents. TIA Quote Link to comment Share on other sites More sharing options...
grmy2h Posted March 2, 2016 Report Share Posted March 2, 2016 Allocate sons portion of 1095A to son. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 2, 2016 Report Share Posted March 2, 2016 I don't think allocating the son's portion of the 1095A is the problem. The problem is that the parent's return now has only 2 exemptions instead of 3, and that changes the federal poverty level used in the calculations in the top portion of Form 8962 for the PTC. The 400% of federal poverty level is more than $16K higher for 3 people than for 2. Quote Link to comment Share on other sites More sharing options...
grmy2h Posted March 2, 2016 Report Share Posted March 2, 2016 Yes, but after alocating they would only owe their portion back. Son would be responsible for his share. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 2, 2016 Report Share Posted March 2, 2016 True. Quote Link to comment Share on other sites More sharing options...
B. Jani Posted March 14, 2016 Author Report Share Posted March 14, 2016 Hello Again: I did allocate on the back of 8962 and Efiled tax return. But got rejected by IRS with Code F8962-049 Federal 1040 If Form 8962, Line 2b 'TotalDependentsModifiedAGIAmt' has a non-zero value, then Form 1040 or Form 1040A, Line 6c(2) 'DependentSSN' must have a value. How do I fix this error. Because if I put junior on dependent, I do qualify for PTC but if not and allocate, then not. Seems like paper file the return. Quote Link to comment Share on other sites More sharing options...
grmy2h Posted March 14, 2016 Report Share Posted March 14, 2016 It sounds like you added sons income to the return. If he is filing his own return then his income wouldn't be added. If I'm understanding the error message correctly. Quote Link to comment Share on other sites More sharing options...
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