How does the contributions on the form 8962 work?
I'm still a student (22 years old), but I took a year off from school to intern at a few companies. That made my income this year to be ~$88k.
My parents have been doing gig jobs this past year and a half due to some circumstances, so their income is very low, allowing them to receive the full Premium Tax Credit, which essentially makes our insurance free.
I'm filing my taxes independently. I was told that my 8962 contribution should be 1/3. From what I've seen, that would result in me having to pay back about $5-6k.
I'm new to taxes and insurances, so I didn't anticipate it to be so much. I should have done other preparations. Any advice would be appreciated.
8962 Contributions Portion Question
byu/Ok-Remove-9499 intax
Posted by Ok-Remove-9499
1 Comment
Your allocation of the insurance attributes can be any amount that you agree on with your parents, not just 1/3. Generally, 100% is given to the lower earner to minimize taxes. Also if you parents are self employed they may benefit form the Self Employed Health Insurance adjustment.