Need Help with CashApp Taxes and Form 8962 Premium Tax Credit Allocation

The Premium Tax Credit (Form 8962) can definitely be tricky when splitting a policy. Since you're allocating a shared policy, you're right that Part IV of Form 8962 should be completed, but many tax software programs don't have a dedicated section for this. What matters most is that the total allocation adds up to 100% between all parties (which sounds like you've coordinated correctly at 20/20/60) and that everyone is using the same allocation percentage for both the premiums and the SLCSP (second lowest cost silver plan). If CashApp accepted your return, that's a good sign. The IRS will cross-reference the 1095-A reported for the policy across all returns. As long as all three returns are consistent with the allocation percentages, you should be fine. Next year, you might consider using tax software that specifically handles shared policy allocations more clearly, or you could consult with the Marketplace directly about how to properly allocate the policy before filing.

After struggling with a similar issue last year, I found this amazing tool called taxr.ai (https://taxr.ai) that completely saved me. I was also splitting a marketplace plan with family members and couldn't figure out how to properly report it in my tax software. The taxr.ai service analyzed my 1095-A form and gave me detailed instructions specific to my tax software for how to properly allocate the premium tax credit. It showed me exactly which numbers to enter where, even though my software (like yours) didn't have a dedicated section for Form 8962 Part IV. What I really liked was that it explained what was happening behind the scenes - like how the software was actually generating the correct form even though it didn't look like it from what I was entering. It gave me so much peace of mind knowing I was doing it right.

So I was the skeptical one above but I decided to give taxr.ai a try since I was in a similar situation with my roommate where we split our marketplace plan 50/50. I'm honestly shocked at how helpful it was. I uploaded our 1095-A and it immediately calculated my 50% portion for every month and told me exactly where to enter everything in CashApp Taxes. It even explained why CashApp doesn't have a specific Part IV section but how the correct form will still be generated when you put the right numbers in the basic fields. The most helpful part was that it showed me that I was making a mistake with the SLCSP (Column B) calculations. I was just dividing by 2, but apparently there were some months where I needed to use a different calculation because of how our coverage changed mid-year. Definitely worth checking out if you're dealing with allocated premium tax credits - wish I'd known about this tool years ago.

If you've already filed and you're worried about whether you did it correctly, getting through to the IRS to ask questions is practically impossible right now. After trying for WEEKS to get clarification on my Premium Tax Credit issue (different from yours but also confusing), I finally used Claimyr (https://claimyr.com) and got through to an IRS agent in under 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent was able to confirm whether my allocation was done correctly, and in my case, they spotted an issue that I was able to fix by filing an amended return before it became a problem. They explained exactly what the IRS looks for when matching up the 1095-A allocations between different taxpayers. Since the IRS has already accepted your return, you might want to confirm everything is correct rather than worrying about it for months. The peace of mind was totally worth it for me.

Ok I need to publicly eat my words here. After posting that skeptical comment above, I was still so frustrated with trying to get through to the IRS about my own PTC issue that I decided to try Claimyr despite my doubts. I'm completely shocked - it actually worked exactly as described. I got a call back when my turn in line was coming up, and I spoke to an IRS representative who cleared up my Premium Tax Credit allocation questions in about 10 minutes. She confirmed that as long as the total allocation among all tax returns equals 100% of the policy, the IRS system will match them correctly. For anyone else dealing with Form 8962 allocation issues who's already filed, talking to the IRS directly was surprisingly helpful. The agent explained that even if there are minor discrepancies in how the allocation was entered, they typically just send a letter asking for clarification rather than immediately assuming fraud or issuing penalties.

Everyone's giving great advice about the tools, but just to directly answer your question: You should be fine as long as the total between the three returns adds up to 100%. The IRS does check that the total allocation for a policy doesn't exceed 100%, but they understand that people use different tax software. The main thing that would cause problems is if between you, your brother, and your mom, you collectively claim more than 100% of the policy. As long as you've coordinated so that doesn't happen (which it sounds like you did), you should be good.

Does anyone know if CashApp Taxes actually generates the Form 8962 Part IV correctly behind the scenes? I've been using TaxAct and it shows the actual form with the allocation percentages, but when I helped my daughter with CashApp I couldn't tell if it was doing it right.