Taxpayer and wife (MFJ) are recipients of Form 1095-A, with 3 nondependent children listed as covered individuals. Parents’ total income is is above the 400% federal poverty line, resulting in a huge tax bill due to excess advanced premium tax credit.

On the other hand, their nondependent children’s incomes are below the threshold. If 0% is allocated to parents’ return and 100% to child with the lowest income, the parents will not have to pay back any of the excess credit yet the kid will get a huge refund…Sounds like double-dipping, any advice is greatly appreciated!