How do I report Shared Allocation Policy amounts when I am divorced?

If you and your former spouse were married at any point during 2024 but were no longer married by the end of the year, and for one or more months during your marriage, you were enrolled in the same qualified health plan, you need to allocate policy amounts on your separate tax returns to figure your Premium Tax Credit (PTC) and reconcile it with your Advance Premium Tax Credit (APTC).

A shared policy allocation can occur when:

1. Individuals get divorced but had a policy that covered the time they were still married, or
2. Individuals have a policy that covers a child but the policy holder is not claiming the child as a dependent. 

Steps to Allocate Policy Amounts:

1. Identify the Period of Coverage: Determine the months during which you and your former spouse were married and enrolled in the same health plan.
2. Locate Policy Amounts: Find the total enrollment premiums, applicable Second Lowest Cost Silver Plan (SLCSP) premium, and APTC on your Form(s) 1095-A, Part III, columns A, B, and C.
3. Agree on Allocation Percentage: You and your former spouse can agree to allocate any percentage (from 0% to 100%) of these amounts to one of you, with the remainder allocated to the other. All three amounts must be allocated using the same percentage. If you cannot agree on a percentage, you must allocate 50% of each amount to you and 50% to your former spouse.

How do I make the entry indicating my child has been claimed on a 1095-A but I am divorced from my spouse?

The allocation must be reported on each person's return and must equal 100%.

1. When the two parties agree on the policy allocation percentages, follow these steps:
   • On the noncustodial parent's return, after selecting the policy allocation, enter the SSN of the custodial parent claiming the child as a dependent. Allocate the agreed percentage the noncustodial parent is claiming on this return.
   • On the custodial parent's return, after selecting the policy allocation, enter the SSN of the noncustodial parent. Allocate the agreed percentage the custodial parent is claiming on this return.
2. When the two parties cannot agree on policy allocations, they must resort to using a mathematical approach. The percentage is 1 divided by the number of persons covered by the policy. 
   • On the noncustodial parent's return, enter the SSN for the custodial parent. Calculate the percentage by dividing 1 (or the number of children involved) by the number of person's covered on the policy. Enter the percentage of the policy the noncustodial parent is responsible for. 
   • On the custodial parent's return, enter the SSN for the noncustodial parent. Calculate the percentage by dividing 1 (or the number of children involved) by the number of person's covered on the policy. Enter the percentage of the policy the custodial parent is responsible for.

Example:

Mike and Donna were married at the beginning of 2024 and divorced in July. They have three children, Ben, Grace, and Max. Mike enrolled the children in a qualified health plan starting in January. After the divorce, the children enrolled in government-sponsored health coverage effective August 1. Mike and Donna agree to allocate the policy amounts 33% to Donna and 67% to Mike for the months they were married.

• Donna will enter Mike's SSN and allocate 33% to herself for each column
• Mike will enter Donna's SSN and allocate 67% to himself for each column

Important:

1. DO NOT add yourself to the allocation entries. You will enter the other person's SSN only- not yours. 
2. Answer No for the question "Do all Forms 1095-A include coverage for January through December, with no changes in monthly amounts? (Remember—if any family members are under different health insurance plans, you’ll have more than one form.)" When you allocate policy premiums, you must enter the monthly amounts even if they are the same for each month in the column. 
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