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Level 2
February 27, 2026
Question

1095-A for Non-dependent on parents' insurance

  • February 27, 2026
  • 2 replies
  • 13 views

I feel like there has to be a way for this to work.  I have a client that is under age 26, but no longer a dependent for tax purposes.  Her return was rejected because there is a 1095-A.  I got a copy of the 1095-A so I can get past the 8962 requirement.  I tried to use the shared policy allocation attempting to force it to not taken any PTC for the return, but what I am left with is that the return has to be paper filed.  I checked the box on 39.1 "Other taxpayer will reconcile the APTC"; Filled in the first 4 sections on 39.2 (Part 1, 2, 3, and 4).  Is there anything that I am missing that might allow this to be e-filed or is it just tough luck?  I can't imagine something as common as this likely is, forcing paper filed returns every year, but perhaps I am wrong with that idea.  

Any help would be greatly appreciated.  Lacerte tax support basically read the diagnostics (like I am unable to read that myself) and after 1.5 hours on the phone with them just said, you have to paper file.  

2 replies

Level 2
February 27, 2026

I had this situation last year.  Both returns (parents and child) must have their allocation percentage.  I don't remember exactly but keep looking and read instructions--do the allocation on each return.  I successfully efiled both

Level 15
February 27, 2026

Are you saying the kid is claiming 0% and the parents are claiming 100%?

In past years the IRS has had problems with the 0% allocation, but I THOUGHT I read that was fixed this year, but maybe that isn't the case

At any rate, you need to attach a PDF that explains the situation (I think I would just do the 8962 showing the 0% allocation) and call it "ACA Explanation".  Hopefully you know how to attach a PDF because I am a ProSeries user so I can't tell you how to do that in Lacerte.