Should I allocate Form 1095-A between separate households when I'm the only covered individual?

This is actually a pretty common situation with Marketplace plans! When the policy holder (your dad) is different from the covered individual (you), and you're not part of the same tax family, you need to allocate the policy. Option A is correct. You and your dad should both file Form 8962, and you'll need to complete Part IV of the form (Allocation of Policy Amounts). Your dad would allocate 0% to himself and 100% to you. This tells the IRS that while he received the 1095-A, you're the one entitled to 100% of the premium tax credit. Your dad will need to enter your Social Security number on his allocation form, and you'll need to enter his. Make sure you're both using the same allocation percentage (0% him/100% you) on your respective forms. Don't worry about the different incomes affecting the calculations. The allocation percentages only determine how much of the policy information gets assigned to each taxpayer. After allocation, the premium tax credit is calculated separately based on each person's income and household situation.

After struggling with a similar Form 1095-A allocation situation last year, I found an amazing tool that made the whole process so much easier! I was going back and forth with my mom about our marketplace plan since I was on her insurance but filing separately. I tried https://taxr.ai and it was literally a lifesaver! I just uploaded my 1095-A and answered a few questions about my situation (who was covered, who was filing separately, etc.), and it walked me through exactly how to handle the allocation on Form 8962. It even explained which boxes needed to be filled out and how the calculations would work. The best part was that it explained how the allocation percentages work and why my mom's income wouldn't affect my premium tax credit once we did the allocation properly. Definitely worth checking out if you're still confused by any part of this process!

Update on my Form 1095-A allocation situation - I ended up trying https://taxr.ai after seeing it mentioned here, and it was actually exactly what I needed! I was really confused about how to handle the insurance allocation between me, my ex, and our child with our alternating dependent arrangement. The tool analyzed my 1095-A and asked me some questions about who was covered and who could claim our child this year. It then showed me EXACTLY how to fill out Part IV of Form 8962 with the correct allocation percentages. It even explained that since I wasn't claiming our child this year, I needed a different allocation than last year. I was genuinely surprised how it handled the complexity without making me feel stupid for being confused. Definitely recommend checking it out if you're dealing with marketplace insurance across multiple tax returns!

If you're having trouble getting clear answers about your Form 1095-A allocation, you might want to call the IRS directly. I was in a similar situation last year with my roommate (we were both on a policy but filing separately) and couldn't get a straight answer from online research. After trying unsuccessfully to reach someone at the IRS for DAYS (busy signals, disconnects, etc.), I found https://claimyr.com which got me connected to an IRS agent in about 30 minutes instead of waiting for hours. There's also a video showing how it works: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with was actually super helpful and walked me through exactly how to handle the allocation on Form 8962. Apparently there are specific rules for different situations that aren't always clear from the instructions.

I need to apologize about my skeptical comment earlier. I actually broke down and tried the Claimyr service because I was absolutely desperate to talk to someone at the IRS about my premium tax credit situation. Not only did it work, but I got through to an IRS agent in about 45 minutes when I had previously spent 3+ hours on multiple days trying to reach someone. The agent answered all my questions about how to handle Form 8962 when multiple households are involved. For anyone dealing with 1095-A allocation issues like the original poster, getting official clarification directly from the IRS was incredibly helpful. The agent explained that when the policy holder and covered individual are different people in different tax households, both need to file Form 8962 with the allocation percentages, exactly as others suggested. I hate admitting when I'm wrong but in this case I'm actually glad I was! Saved me a ton of frustration.

I went through this exact situation two years ago with my stepdad's marketplace plan. We ended up going with option A (both filing 8962 forms with 0%/100% allocation), and it worked perfectly. One tip: make sure both of you keep copies of BOTH 8962 forms in case of an audit. The IRS sometimes gets confused when they see a 1095-A recipient allocating 0% to themselves. Another thing to keep in mind is that whoever gets the 100% allocation (you in this case) will be the one potentially getting the premium tax credit or having to repay excess advance payments. Your dad's form is basically just telling the IRS "I'm not claiming any of this.

Has anyone else noticed that the 1095-A forms are weirdly confusing for marketplace plans? Like why don't they just issue the form to the person who's actually covered by the insurance? I had a similar issue last year and ended up just having the policy holder (my partner) claim everything and then we split the refund/payment based on our agreement. Not technically correct probably but way simpler than doing the allocation.

I just went through this exact situation last month! My mom received the 1095-A but I was the only one covered on the policy, and we file separately. Option A is definitely the way to go. Both you and your dad need to file Form 8962, but with the allocation percentages showing 0% for him and 100% for you. This is actually pretty straightforward once you understand what's happening - you're just telling the IRS who gets to claim which portion of the policy. A few things that helped me: - Make sure you both use the exact same allocation percentages (0%/100%) - You'll need each other's SSNs for Part IV of Form 8962 - Your dad's form will basically show zeros for everything after allocation, but he still needs to file it - Only your income matters for the premium tax credit calculation since you're getting 100% allocation The income difference between you and your dad won't mess anything up because once the allocation is done, his income is completely out of the equation. Your premium tax credit will be calculated based solely on your income and household size. Don't let the allocation part intimidate you - it's really just paperwork to clarify who gets what. The actual tax credit calculation happens separately for each person based on their allocated percentage.