Need help filling out Form 8962 for health insurance tax credit

This is actually pretty common when you're on your parents' plan but file your own taxes! Form 8962 reconciles advance premium tax credits (APTC) for marketplace health insurance. Since your parents claimed 100% allocation, you don't need to report any of the premium tax credit on your return. However, you still need to complete Form 8962 to show the IRS that you're allocating 0% to yourself and that your parents claimed 100%. For Part 1, you'll need to enter your personal information and tax family size (just you). For Part 2, since you're allocating 0%, you'll enter zeros for all months. Then in Part 4 (Allocation of Policy Amounts), you'll enter your parents' info and show they're taking 100% allocation while you're taking 0%. Make sure to attach both the completed Form 8962 and a copy of the 1095-A to your response to the IRS. The 1095-A is crucial because it shows the IRS you're responding to their specific request about marketplace coverage.

I went through this exact same situation last year when I was on my mom's insurance but filed independently. I spent HOURS trying to figure this out before discovering taxr.ai (https://taxr.ai) which saved me so much time. It analyzed my 1095-A form and told me exactly how to complete the 8962 with the correct allocation percentages. I just uploaded my 1095-A and answered a few questions about who was claiming what percentage, and it gave me step-by-step instructions for completing every line of the form. It even explained which parts I could leave blank since my mom had claimed 100% of the premium tax credit. What really helped was that it showed me a preview of what my completed 8962 should look like based on my situation, so I could double-check before sending it to the IRS.

Just wanted to follow up about my experience with taxr.ai after trying it for my Form 8962 situation. I was initially skeptical but decided to give it a shot since I was completely stuck. It was actually super helpful! The interface walked me through exactly what information I needed to enter from my 1095-A, and it automatically calculated the correct allocations. What I really appreciated was that it explained WHY I needed to enter zeros in certain fields since my parents had claimed 100% allocation. The best part was that it generated a complete explanation letter I could send to the IRS along with my forms. I mailed everything in about three weeks ago and just got confirmation that my response was accepted. Definitely saved me from having to call the IRS and wait on hold forever!

If you're getting nowhere with the 8962 form and need to talk to someone at the IRS directly, try Claimyr (https://claimyr.com). I was in a similar situation with a premium tax credit issue but couldn't get through to anyone at the IRS - kept getting disconnected after waiting on hold for ages. I found this service that basically waits on hold with the IRS for you and then calls you when an actual human picks up. You can see how it works here: https://youtu.be/_kiP6q8DX5c. I was super skeptical at first, but my Form 8962 situation was getting urgent since I was approaching the deadline to respond to the IRS notice. The service called me back in about 40 minutes with an actual IRS agent on the line who walked me through exactly what I needed to fill out on the form based on my parents claiming 100% allocation. Saved me hours of frustration and probably prevented me from filling it out wrong.

I need to apologize for my skepticism about Claimyr. After posting that comment, I was still desperate to talk to someone at the IRS about my Premium Tax Credit issue, so I decided to try it anyway. To my complete shock, it actually worked! I got a call back in about an hour with a real IRS agent on the line. The agent explained exactly how to fill out Form 8962 in my situation (which was similar to yours - parents claimed 100% allocation). She walked me through each line and told me which parts I could leave blank, and confirmed I just needed to show 0% allocation on my end. Would have taken me days of trying to figure this out on my own or weeks trying to get through on the phone. Seriously changed my perspective on dealing with tax issues.

One thing nobody has mentioned is that you need to make sure you're using the EXACT same 1095-A information that your parents used on their return. If there's any discrepancy, the IRS computers will flag it. Also, when you mail in your response, send it CERTIFIED mail with return receipt so you have proof the IRS received it. I learned this the hard way when they claimed they never got my 8962 response and sent me another notice with penalties!

Reading all these replies reminds me how RIDICULOUS the healthcare system is in this country. Form 8962 is stupidly complicated for no reason... why should we need special services just to figure out how to tell the IRS "my parents already claimed this"??

Hey @Annabel Kimball! I went through this exact same situation last year and it's really not as complicated as it seems once you understand the basic concept. Since your parents claimed 100% allocation on their Form 8962, you essentially need to file your own 8962 to show the IRS that you're claiming 0% of the premium tax credit. Think of it as officially "passing" on your share. Here's what you need to do: 1. Get a copy of the 1095-A from your parents (make sure it's the exact same one they used) 2. Fill out Form 8962 with your personal info in Part 1 3. In Part 2, enter zeros for all months since you're not claiming any premium tax credit 4. In Part 4, show that your parents are taking 100% allocation while you're taking 0% The key thing is that the IRS computers need to see that 100% of the premium tax credit has been accounted for between all the tax returns filed. Your parents claimed 100%, so you need to officially claim 0% to balance it out. Make sure to send it certified mail with your 1095-A copy, and don't stress too much - this is a very common situation for young adults on their parents' plans who file independently!