Level 12

@JDRM wrote:
We don’t think this example applies – they are not a two tax family. The example under that situation is based on divorced parents – each parent is its own tax family. In this case, Alexis is filing her own tax return but that does not make it a two tax family for purposes of the allocation."


It is clearly TWO "tax families".

The Instructions:

Tax family.

 For purposes of the PTC, your tax family consists of the following individuals.

  • You, if you file a tax return for the year and you can’t be claimed as a dependent on someone else’s 2019 tax return.

  • Your spouse if filing jointly and he or she can’t be claimed as a dependent on someone else’s 2019 tax return.

  • Your dependents whom you claim on your 2019 tax return. 

https://www.irs.gov/instructions/i8962#idm140224374411152

 

The Regulations:

(d) Family and family size. A taxpayer's family means the individuals for whom a taxpayer properly claims a deduction for a personal exemption under section 151 for the taxable year. Family size means the number of individuals in the family

https://www.law.cornell.edu/cfr/text/26/1.36B-1

 

 


@JDRM wrote:
 We all conclude that a father and a daughter can’t decide to allocate all of this credit to the daughter’s tax return. 

Regulation §1.36B-4:

Example 12.
Allocations for an emancipated child. Spouses L and M enroll in a qualified health plan with their child, N. L and M attest that they will claim N as a dependent and advance credit payments are made for the coverage of all three family members. However, N files his own return and claims a personal exemption deduction for himself for the taxable year. Under paragraph (a)(1)(ii)(B)(1) of this section, L and M are enrolling taxpayers, N is a claiming taxpayer, and all are subject to the allocation rules in paragraph (a)(1)(ii)(B) of this section.
 
 
In paragraph 2 of (a)(1)(ii)(B) [cited in Example 12], it says:  The enrolling taxpayer and claiming taxpayer may agree on any allocation percentage between zero and one hundred percent.