Level 13

@JDRM wrote:

The CPA that prepared his return entered the allocation percentage on form 8962 as premium 0.00%, SLCSP 0.0%, and advance payment of the PTC 0.75%.


That is not allowed.  From the first link above about Allocation Situation 4:  "However, you must use the same allocation percentage for all policy amounts (enrollment premiums, applicable SLCSP premiums, and APTC) in a month."

 

 


@JDRM wrote:

It has calculated the net premium tax credit as $11,220 which now results in $11,154 as her overall tax refund.  This just doesn't seem right to me.  Can you help me understand if this is correct or not?


Although it doesn't seem right or fair, that is how they wrote the Regulations.  So it is common for this situation to give a large refund to the child.

But just be sure the father's return is corrected to 0/0/0, and the child's return is 1.00/1.00/1.00 (actually, if the child's return claims 100%, you don't need to fill out the allocation section).