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    #1

    ACA question

    My client is divorced (long time) and has a 19 year old son. The son is on the father's employer's health insurance for 2014. The mother got her insurance through the marketplace. The son did not work in 2014, but was a FT student. I have rec'd form 1095-A.

    After filling out form 8962 with a family size of 2, she will receive an additional $312 PTC.

    If I fill out the 8962 with a family size of 1, she will owe $189 for the PTC.

    Is there somewhere that I need to show the son had coverage for the full year outside of the marketplace? Should the PTC be calculated using a family size of 1 or 2?

    The shared allocation examples seem to be for policies that were purchased through the marketplace.
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    #2
    If your client claims the son as a dependent, then the tax family size is 2, regardless of where the son got coverage.

    Assuming your client did not include her son on the policy she bought through the marketplace (because his father had him on his policy), then the 1095-A should only reflect the policy amount that she paid for herself alone, and not the son. The advanced payment of the PTC reported on the 1095-A should likewise only reflect her policy.

    If, however, the marketplace put her son on the policy as well as the mother and APTC was paid for the son as well, then you have a problem and you will have to find one of the Part 4 scenarios.

    Assuming your client did not include her son on her policy purchased through the Marketplace, then it is correct that her PTC would be higher for her tax family of 2 rather than a tax family of 1. The PTC is for her only, but with having to support a dependent, that means her household income as a percentage of the Federal Poverty Level will be lower than with just one person since the Federal Poverty Level for two people is higher than for one. Thus, the PTC is higher the lower her income is in relation to the FPL.

    If that makes sense...
    Last edited by Bees Knees; 01-24-2015, 02:24 PM.

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      #3
      The 1095-A is correct. I checked the box that everyone has coverage so I guess that covers the son.

      Thanks for your response.

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