ACA Explanation

[Twwhite]

The client (age 24) was listed on their parent's 1095A from the ACA Marketplace for the 2021 tax year. The client has an income of over $16000 and moved out of their parent's residence during the 2021 tax year. We filed an individual tax return for the client. However, the client return got rejected "The e-file database indicates that form 8962 or binary attachment with a description containing "ACA Explanation" must be present in return." The notice explain that the Premium tax credit is missing from the return and the 1095-A is required. 

The client's parents already filed their return and didn't claim my client as a dependent. 

How can I fix this rejection?

Should the parents amend their tax return to claim their dependent? 

[Just-Lisa-Now-]

the 1095A goes on both the parents return and the adult kids return. You have to allocate % to each however works out best. Are you preparing both returns? That makes it easier to see who benefits by the % allocation. Allocation is down near the bottom of the 1095A entry worksheet.

[dkh]

Not being claimed as dependent isn't the issue....it's an insurance issue

[Taxguy0013]

I have a similar situation. I do not prepare both returns, only the child. Based on what I am seeing, I need to have the parents' SSN to enter the 1095A on the child's return as an override for the recipient field. Is that correct? The override will most likely cause another IRS rejection.

The father is actually the Box 4 "Recipient", but the child's name and SSN default to the 1095A screen as "Recipient". On the actual form, the child is listed as a covered individual.

[Just-Lisa-Now-]

dont worry about the stuff at the top of the form matching the 1095A (none of that appears on the 8962), just leave it as is and input the figures then allocate at the bottom.