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ACA shared responsibility provision for adult dependent of taxpayer

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    ACA shared responsibility provision for adult dependent of taxpayer

    Taxpayer's adult son received coverage through exchange for 2014. Based on his income all premium paid by APTC. He lost job March 1 (1800 of wages to that date) and parents supported him (more than half) for rest of year. If they claim him as dependent they will have to repay the PTC based on their income. Do they have to claim him as a dependent on their return?

    #2
    This is how I read the legal gibberish:

    They don't need to claim him as a dependent. However, because his parents CAN claim him as a dependent ("allowable" and "may claim"), he doesn't qualify for the Premium Tax Credit (and not able to claim his own exemption). Because of his low income, his repayment will only be $300.


    Regulation 1.36-4(a)(ii):

    Responsibility for advance credit payments. A taxpayer must reconcile all advance credit payments for coverage of any member of the taxpayer's family. If advance credit payments are made for coverage of an individual for whom no taxpayer claims a personal exemption deduction, the taxpayer who attests to the Exchange to the intention to claim a personal exemption deduction for the individual as part of the determination that the taxpayer is eligible for advance credit payments for coverage of the individual must reconcile the advance credit payments.

    https://www.law.cornell.edu/cfr/text/26/1.36B-4

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