New Gov' Insurance Plan-Student Age 24 in 2009

[zeros]

Client called and was concerned about getting her full time student enrolled in the new insurance plan, allowing students up to 26th years of age to be enrolled in the plan. I understand that the student would have to be a dependent on the parents' return which he is not. He earned $7968 in 2009 amd, of course, claimed himself. He lives at home except for the time he is in college. Someone has suggested that he be claimed as a "qualifying relative" thereby qualifying him as an exemption and also for the new insurance. Must confess I do not know much about this new law. Any help out there?

[JoshinNC]

He's not a qualifying relative for dependency purposes

Client called and was concerned about getting her full time student enrolled in the new insurance plan, allowing students up to 26th years of age to be enrolled in the plan. I understand that the student would have to be a dependent on the parents' return which he is not. He earned $7968 in 2009 amd, of course, claimed himself. He lives at home except for the time he is in college. Someone has suggested that he be claimed as a "qualifying relative" thereby qualifying him as an exemption and also for the new insurance. Must confess I do not know much about this new law. Any help out there?

His income is too high. The qualifying relative definition is not controlled by the Health Care Law, it is part of the Code's definition of a dependent.

[rjholmes]

If the child was under 24 and a full time student, why wouldn't he be a qualifying child and dependent of the taxpayer? With household expenses, college expenses, etc, I don't believe he provided over half of his support. Or maybe he was over 24, thus changing the dependency rules.

[S T]

Yes

I believe OP left out the age in the post, so we would need the age of the child/student , or a year of birth maybe.

Wonder if the IRS rules are going to change for a qualifying child (full time student) from age 24 to age 26?

I doubt the qualifying relative rules will change, with the gross income test.

Sandy

[zeros]

Was 24 as of 12/31/2009

If the child was under 24 and a full time student, why wouldn't he be a qualifying child and dependent of the taxpayer? With household expenses, college expenses, etc, I don't believe he provided over half of his support. Or maybe he was over 24, thus changing the dependency rules.

His DOB is 4/23/85 so the student was 24 on April 23, 2009.

[JoshinNC]

My bad

His DOB is 4/23/85 so the student was 24 on April 23, 2009.

I saw 26 in the OP and thought that was the age of the student.

[S T]

See TTB

Dependency Test for 2009 - page 3-15

Under Qualifying child, # 6 Age Test, "Under age 24 at the end of 2009, a full time student for any part of five calendar months during 2009, etc

Under Qualifying relative #6 Gross Income Test, "The relative must have gross income of less than $3,650 in 2009 - See Taxalbe/Nontaxable Income, page 3-19

I don't think your t/p "college student" can qualify for Qualifying child or Qualifying Relative,

On the internet, Not sure if I understand the entire Health Care Reform regarding the coverage of Dependents under Age 26, but I found this

Health Plans that cover Dependents: If your health care plan currently covers dependents, the rules takes effect on or after Sept. 23, 2010. The rule would now require that the policyholder’s children be covered until the age of 26 unless they have access to an employer-sponsored plan. If they were previously dropped, they can re-enroll as long as they don’t have access to an employer-sponsored plan. The child does not need to live with the parent and does not need to be claimed as a dependent on the parent’s tax return. If the health insurance plan’s open enrollment period isn’t in the fall, the plan must give dependents 30 days to decide whether or not to enroll.

The parents should contact their Health Care Provider to see whether or not their Son will qualify.

Sandy

[Gene V]

The child does not need to live with the parent and does not need to be claimed as a dependent on the parent’s tax return.

I wonder if the parents pay for the health care and the child is not their dependent, do
they get to claim the whole cost of insurance for medical expense or do they have
to prorate the cost?

[Kram BergGold]

The New Law

I may be wrong, but the new law, effective March or April 2010, allows children to be covered on their parents policies until age 27, period. There is no need to be a student.

[newbie]

I may be wrong, but the new law, effective March or April 2010, allows children to be covered on their parents policies until age 27, period. There is no need to be a student.

I think you're right, I wasn't sure of the effective date. If the child is not your dependent and covered under your employers plan the cost of the insurance for the child that is not your dependent is considered income. If the child is your dependent it is not income.

[Bees Knees]

There is no government insurance plan. That did not make it into the final law.

The adult child coverage rule means if the parents have a health insurance plan that includes coverage for dependents, then under the new law, dependent coverage applies to all children up to age 26. The child does not have to be a dependent for tax purposes. The only requirement is that the child is a child of the parent, meaning income status, student status, and marital status are all irrelevant. The child does not even have to live with the parent.