Premium Tax Credit Allocation Diagnostic

Forum|Forum|3 years ago
March 21, 2023
1 reply
13 views

I have a client who has her 3 non-dependent kids on a 1095-A. They are allocating 100% of the premium to her and 0% to her kids. I was able to get hers taken care of, however, when I tell Lacerte that each of her kids are allocated 0%, I get a diagnostic that enrollment premiums or advance payment of PTC must be entered on Form 8962, Part II, line 11. It's telling me the return must be filed as a paper return. Is that correct or am I entering this incorrectly? I entered all of the monthly premiums but the allocation of 0% generates that diagnostic. Is there a way to still get this to efile?

Lacerte Tax

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T

TaxGuyBill

Level 15

Just to double check - was there Advance credit paid (column C of the 1095-A)?

And you've filled out all three columns for the 1095-A?

As a side note, does it have the best results to allocate 100% to the parents? In many cases, a kid may have lower poverty percentage and would end up with a better credit.

C

Charper1841Author

Level 3

Hi Bill!

Yes, there was advance premium credit paid.

I also believe that they would get a better credit with the percentage but she is insisting on putting all of it on hers.

Thanks for your help!

T

TaxGuyBill

Level 15

Intuit has never been good with the 0% allocation.

I would ignore the diagnostic and e-file it.

If the e-file is rejected, the print the 8962 to a PDF, and attach that PDF and label it as "ACA Explanation".

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