How do I report Shared Allocation Policy amounts when I am divorced (Form 8962)?

If you and your former spouse shared a Marketplace health insurance policy during the year, the Marketplace may have issued one Form 1095‑A with information for both of you.
To correctly complete Form 8962 – Premium Tax Credit, you may need to enter a Shared Policy Allocation.

🎯 What Is a Shared Policy Allocation?

A Shared Policy Allocation is required when:

• 👤 You and your ex‑spouse were covered by the same Marketplace health plan, and
• 🧾 The Marketplace issued one combined Form 1095‑A, and
• 💍 You divorced or legally separated during the tax year, or you are filing separately.

🗂️ What Gets Allocated?

The tax credit–related amounts on Form 1095‑A:

• 💲 Premium Amount (Column A)
• 💲 Second Lowest Cost Silver Plan (SLCSP) (Column B)
• 💲 Advance Premium Tax Credit (Column C)

These amounts must be split between you for the months you both shared the policy. 

🤝 Choosing Allocation Percentages

You and your former spouse may choose any allocation percentage as long as:

• Percentages apply equally to Columns A, B, and C
• Percentages add up to 100%

If you cannot agree, the IRS default rule applies:

• Each spouse uses 50% of Columns A, B, and C for shared months

The same allocation percentage must be used for all three columns for each applicable month.

📝 How to Enter a Shared Policy Allocation

1️⃣ Enter the Form 1095‑A

• Go to Federal
• Select Health Insurance
• Choose 'Yes' to indicate you have Form 1095‑A – Health Insurance Marketplace Statement
• Enter the form exactly as printed

2️⃣ Advance Premium Tax Credit screen

Choose 'Allocate policy amounts (Form 8962, Part IV' to open the Shared Policy Allocation Menu

Select: 👉 “Add another allocation.”

3️⃣ ➕ Add Another Allocation

Enter: 

• 🧾 Policy Number
  • If the policy number is more than 15 digits, enter only the last 15 digits
• 🧍 Social Security Number of the ex‑spouse sharing the policy
• 📅 Allocation Start Month and Stop Month
  • Use two‑digit month format (e.g., January = 01)

Next, enter the taxpayer’s allocation percentage for:

• Premium Amount
• Second Lowest Cost Silver Plan
• Advance Payment of Premium Tax Credit

Percentages may be 0% to 100%. If percentage is 0%, see 'How to report shared policy allocation on Form 8962 (Marketplace insurance) Form 1095-A?' for reporting instructions. 

Select Add to return to the Allocation Menu.

4️⃣ Enter the Allocation Amounts Manually

The program will ask:

“Do all Forms 1095‑A include coverage for January through December, with no changes in monthly amounts?”
👉 Select No

Now manually enter:

• Allocated Premium Amount
• Allocated SLCSP Amount
• Allocated APTC

📌 How to calculate the amounts

For each month the shared policy applied:

1. Take the taxpayer’s allocation percentage
2. Multiply it by the amounts in Part III, Columns A, B, and C on Form 1095‑A
3. Enter the resulting monthly amounts manually into the program

⚠️ Important:
The program does NOT automatically calculate these amounts. You must compute and enter them yourself.

If there are multiple shared policies

Add the applicable allocated amounts together for each month, then enter the combined monthly amounts.

After entering all amounts for each covered month, select Continue.

5️⃣ Review

Review:

• Allocation percentages
• Monthly amounts entered
• Form 8962 Part IV to ensure allocations appear correctly
• Part II to confirm the Premium Tax Credit results look accurate

Once everything is correct, continue through the return.