bhood
Level 3

Hi Tax Guy so we are having issues with kids moving out of the parent's home and no longer being dependants.   The parents in this case and others are showing 2 kids (one being the adult no longer a dependant but under 26)   She had insurance with the parents under CA cares and they received a 1095A listing the adult daughter for the first 4 months of the year.  The daughter then obtained a job and full medical coverage as part of the new job getting a 1095B for the remainder of the year.   Because she is listed on the 1095 A the feds will kick back the return for not listing the 1095A on her return as she did have coverage.    I think the solution may be answered in this post from 2016.   I also had a potential client ask for help similar situation and because she was covered on the parents 1095A return (she was under 26)  the feds questions her for not addressing the 1095A, and when she sent them a copy of the parents 1095A showing her they assessed her to repay the full amount because she earned to much to be covered.   That made her repay the parent's full medical coverage.

 

How does my son (non-dependent) deal with healthcare on his
taxes when I paid for his coverage through the marketplace (on the plan with my husband and dependent son)?
In 2016, I covered/paid for marketplace healthcare to cover my husband, dependent son, and non-dependent son. I included the 1095-A on my tax return and repaid 100% of the subsidies. My non-dependent son needs to prove healthcare coverage on his own tax return; however, when he indicates that he had a marketplace plan, it asks him for percentages, etc. He didn't pay for any of his healthcare. What do we do?

 

answer     second lowest cost Silver plan (SLCSP) premium
 
 

Your son will need of your 1095-A. He will indicate that he shared this policy with someone who is not on his tax return.  

On your tax return, you will indicate the same information.

You will have to find what the SLCSP is for each person's household and add it up. Then, divide your SLCSP by the total SLCSP to get your percentage of premiums and advanced payment of the premium tax credit.

In allocating any Advance Credit received, you have the option to claim 100% of the 1095-A on your tax return, or you can allocate part of it to your son.  The allocation can be anywhere from 0% to 100%.  You both must agree to the allocation.

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