Premium Tax Credit Allocation Diagnostic

[Charper1841]

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?

[TaxGuyBill]

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.

[Charper1841]

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!

[TaxGuyBill]

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".

[Charper1841]

Unfortunately, it's a critical diagnostic.  I just tried validating it and it was a no go.  I like your solution though!  It just seems unnecessary to have to paper file the return based on the 0% allocation.

[TaxGuyBill]

This is the first I've seen anybody post here saying they can't e-file with the 0% allocation, and it is somewhat common to e-file with a 0% allocation (but as I said before, Intuit doesn't handle it very well).  So I'm wondering if maybe you are entering something incorrectly?  Or possibly a new 'bug' from Lacerte?

I'm a ProSeries user, so I can't specifically test out how to enter it in Lacerte.