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Level 3
April 7, 2024

FORM 8962 – ALLOCATION OF POLICY AMOUNTS

  • April 7, 2024
  • 1 reply
  • 5 views

The taxpayers received Form 1095-A showing Monthly Advance payment of premium tax credit. There is an adult child (25 years old) on that policy and she must file her independent return.

Do I have to allocate policy amounts between the taxpayers and that child or can taxpayers/parents choose to claim 100% of the policy amounts on their return?

1 reply

abctax55
Level 15
April 7, 2024

Allocating is allowed.  You can do it in the manner that produces the best combined tax result

HumanKind... Be Both
Level 3
April 8, 2024

The best result would be if the taxpayers claim 100% of the total amounts and the child 0%. Would 100% to 0% be reasonable?

abctax55
Level 15
April 8, 2024

Reasonable is irrelevant.

Yes, it's allowed

Search for @TaxGuyBill 's numerous posts on this subject

HumanKind... Be Both