Filling out Form 8962 when below 100% Federal Poverty Line but covered under parent's insurance for part of the year?

The form 8962 can be confusing especially with your specific situation! Since you were listed on your dad's 1095-A for part of the year when he received advance premium tax credits (APTC), you do need to deal with Form 8962, even though your income is below 100% FPL. Here's how to handle it: Since you're below 100% FPL but were enrolled in a qualified health plan with APTC through your dad's plan, you should check the "Yes" box on Line 6 and continue with the form. This is an exception to the general rule that people below 100% FPL don't qualify for PTCs. For the months you were on Medicaid (January-June), you wouldn't have any share of PTC. For July-December when you were on your dad's Marketplace plan with APTC, you'll need to coordinate with your dad since he received the APTC that partially covered you. The allocation percentage between you and your dad will need to be determined for those months.

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Just wanted to add that if you were on Medicaid for part of the year, you shouldn't have to pay back any premium tax credits for those months. Form 8962 has you calculate PTC month by month, so you should only be dealing with the months you were on your dad's marketplace plan. Also important - you mentioned your dad filled out Form 8965 for coverage exemption. That's separate from Form 8962. You don't need Form 8965 since you had full-year coverage between Medicaid and your dad's plan. You only need to worry about 8962 to reconcile the premium tax credits.

Has anyone actually gotten an IRS notice for this kind of thing but been below poverty line? I thought there was a rule that if you're below 100% FPL, you don't have to pay back premium tax credits? I'm in a similar situation and freaking out about potentially owing money.

I went through almost this exact situation last year! The key thing to understand is that even though you're below 100% FPL, you still need to complete Form 8962 because advance premium tax credits were paid on your behalf when you were on your dad's marketplace plan. Here's what worked for me: On Line 6, check "Yes" because you meet the exception - you were enrolled in a qualified health plan where APTC was paid, even though your income is below 100% FPL. For the monthly calculations, you'll put zeros for January-June (Medicaid months) and then work with your dad to determine the allocation percentage for July-December. The good news is that there are repayment limitations based on income. Since you're below 200% FPL, your maximum repayment is capped at a much lower amount than the full credit received. In many cases with very low income like yours, you might not owe anything back at all. Make sure to coordinate with your dad on the allocation percentage - you both need to use the same percentage on your returns. The IRS instructions for Form 8962 have examples of how to calculate this based on the premium amounts for each person covered.