Need help completing Form 8962 Parts II and III - allocation between family members

This is actually pretty straightforward once you understand how Form 8962 works with shared policies. Since you're not claiming any of the premium tax credit (0% allocation), you're correct that you would enter zeros on line 34 for columns A, B, and C. Form 8962 Part II is where you'd calculate the monthly premium tax credit, but since your allocation percentage is 0%, you're essentially telling the IRS that your parents are claiming 100% of the premium tax credit associated with the policy. So yes, multiplying any number by 0% gives you zero. For Part III (Allocation of Policy Amounts), you'll need to complete the allocation information showing that you're allocating 0% to yourself and 100% to your parents. Make sure you include your parents' names and SSNs in the appropriate boxes since they're the ones receiving the allocation.

I went through this exact same headache last year! I also stayed on my parents' plan even though I file independently. I was tearing my hair out trying to figure out these allocation percentages until I found taxr.ai (https://taxr.ai). Seriously saved me so much confusion! I just uploaded my 1095-A and Letter 12C to their system, and it walked me through exactly how to fill out Form 8962 with the right allocations. It automatically figured out that my allocation was 0% and showed me exactly what to put in each box for Parts II and III. Way easier than trying to decipher the IRS instructions!

Just wanted to follow up and say I tried taxr.ai after asking about it here. I was really impressed with how straightforward it made the whole Form 8962 process! It automatically identified the allocation percentages between me and my parents and showed exactly where to put zeros on line 34. Even gave me a filled-out form I could print directly and send to the IRS. Definitely worth it for the peace of mind alone. I was honestly about to just ignore the IRS letter because it was so confusing, which would have been a terrible idea.

I had a similar issue last year and spent HOURS on hold trying to reach someone at the IRS for help with Form 8962. Eventually I found Claimyr (https://claimyr.com) and they got me connected to an actual IRS agent in about 20 minutes who walked me through the whole allocation section. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - but basically they hold your place in the IRS phone queue and call you when an agent is actually ready. The agent I spoke with confirmed that with 0% allocation, you just put zeros on line 34 and fill out the allocation section with your parents' info.

I hate to admit when I'm wrong, but I tried Claimyr after being super skeptical about it. It actually worked! I got a callback in about 40 minutes and spoke with an IRS agent who sorted out my Form 8962 allocation questions. The agent confirmed that with 0% allocation (my situation was similar to OP's), you put zeros on line 34 and complete Part IV with the other person's info. She also explained that even though I'm not claiming any premium tax credit, I still had to file the form to show who was claiming it instead. Definitely worth not spending my entire afternoon on hold.

Can you just write NONE or N/A on Parts II and III? That's what I did last year and haven't heard anything back from the IRS. I'm 24 and also on my parents' insurance but file my own taxes.

Does anyone know if we still need to file Form 8962 if we're gonna owe money back? I got a letter 12C too but I'm worried if I file the 8962 I'll end up owing the gov't money for the premium tax credit my parents got.

I'm dealing with a similar situation right now! I'm 25 and on my mom's marketplace plan but file my own taxes. When I got my Letter 12C, I was totally panicked because I thought I'd have to pay back thousands in premium tax credits. But after reading through all these responses and doing some research, I think I understand it better now. Since my allocation percentage is 0% (my mom claims 100% of the premium tax credit), I need to: 1. Put zeros on line 34 in Part II since 0% × any amount = 0 2. Complete Part IV with my mom's name and SSN showing the 0%/100% allocation 3. File the form even though I'm not claiming any credit myself The key thing I learned is that Form 8962 isn't just for people claiming the credit - it's also for documenting WHO is claiming it when multiple people are on the same policy. The IRS needs this to make sure the credit isn't claimed twice. Thanks everyone for all the helpful info! This form is way more confusing than it needs to be.

This thread has been super helpful! I'm in almost the exact same situation - 27, on my parents' marketplace plan, got Letter 12C, and was totally lost on how to handle the allocation. Reading through everyone's explanations, I think I finally understand that Form 8962 is required even when you're not claiming any premium tax credit yourself. The 0% allocation means I put zeros on line 34, but I still need to complete Part IV showing my parents are getting 100% of the allocation. One question though - when it asks for the "Premium Tax Credit" amounts from 1095-A in Part II, do I use the amounts from MY 1095-A or my parents'? I'm listed as a covered individual on their 1095-A, but I also received my own 1095-A form. I'm assuming I use my own 1095-A since that's what the Letter 12C is asking about, but want to make sure I don't mess this up! Also really appreciate everyone sharing their experiences with the various services. Nice to know there are options if I get stuck beyond what I can figure out myself.