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Market place Health Insurance for a family.... help


giogis245

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Hi All, there's a family of 4, husband and wife and 2 college students kids who have the insurance.  Last year both college kids were claimed by their parents and they also filed their returns.  I input 1095-C market place health insurance info only on the parents and both kids received a letter from the IRS stating that they needed to include the information from form 1095-C as well. Does this sound correct?  This year upon entering the information, they owe a crazy amount of money as repayment if I include the info on the kids return, I am not sure what to do.  

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Yes, if you file a tax return and have marketplace insurance, you have to include the 1095-A information on the return even if the policy is shared by the whole family.  However, you can allocate those costs any way that works our best for everyone.  So even though you put the policy information on the kids return, you might allocate 0% of the premiums to the kids and all to the parents.  Or the other way around - whatever results in the lowest tax bill for the family.  Or any combination thereof.   On my software there is a space at the bottom of the 1095A entry form for the shared policy allocation information.  I assume ATX has something similar. 

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