ACA and dependents

[S T]

Question
One scenario is Taxpayer and spouse are both retired ( 80+), covered under Medicare - they are covered for Healthcare. Claiming a 45+ year old son that does not work or have any income - Taxpayer supports - Son goes to MarketPlace to acquire HealthCare coverage that is costing $ 300 per month - If the son has no income - why can't the Son apply for MediCal-Medic-Aid - Is it due to the fact that the Taxpayer supports him and claims the dependency exemption? The 1095A was issued in the Taxpayer's (Father's name) with the Son covered (not the parents)

By the way those funds are limited on retirement at around $ 35,000 including Social Security

2nd Scenario is Taxpayer - surviving spouse - again limited income around $ 42,000- - has a daughter that is in her 50's that lives with her and assists in taking care of the Senior Taxpayer - around age 80 - We do not claim daughter as dependent on the Taxpayer's return - Unemployed daughter qualified for Medi-Cal/Medic-Aid

I am not understanding this

Any thoughts would be appreciated

Thanks

Sandy

[Burke]

Not sure what your question is. If unemployed dependent is covered under a state govt plan like Medicaid, then they meet the requirements for minimum essential coverage. If they are covered all year, check the box and claim dependent if they meet support requirements.

[S T]

Two similar scenarios with taxpayers and adult dependents

Wondering why one dependent has to pay for Healthcare

And

the other Family's dependent qualifies for Medi-Cal/Medic-Aid and pays nothing

Neither dependent has any income

Sandy

[TaxGuyBill]

Part of it depends on what State they live in (if the State has expanded Medicaid).

Another one is how they are related, and possibly if the dependent is actually claimed or not. For example, if the State DID expand Medicaid, and a child (of any age) is claimed as a dependent, the eligibility is based on the parent's income. For non-children, it is ONLY the income of that individual that determines the eligibility.

Another big one is WHO has helped them sign up for insurance. I've heard of countless incorrect things being said by Healthcare Navigators, Medicaid staff, and others.

[S T]

Thanks Tax Guy Bill

Both scenarios, it is the retired Taxpayers Son or daughter - no income

I believe it is the sign-up at the MarketPlace - these two are both Calif

So I have one dependent with NO income complying with minimal essential coverage and the Taxpayer Parents are claiming as a dependent and paying over $ 300 per month for the Health Insurance Coverage

I have the other dependent with NO income complying with minimal essential coverage through Calif Medi-Cal, and the Taxpayer parent is NOT claiming as a dependent and no Health Insurance Coverage Cost.

Both household incomes on Tax Return are approximately the same - only difference is one has 3 members in household and other has 2 members in househod.

Sandy

[TaxGuyBill]

It seems like the correct treatment to me.

In the first scenario, the parents are actually claiming the dependent, so the Medicaid eligibility is based on the parents' income. Therefore that person is paying for insurance.

In the other scenario, the parents are NOT claiming the dependent, so the Medicaid eligibility is ONLY based on the would-be-dependent's income. Therefore that person is getting Medicaid.

[S T]

Thanks for clarification

Not claiming the dependent on the one return that is paying over $ 300 per month for Health Care Essential coverage will be financially better for those parents! 10% tax bracket if the dependent can qualify for Medi-Cal in 2016.

On the scenario for the other dependent not claimed, however, has the Medi-Cal - do I have to complete form 8962 or 8965 - dependent has no tax filing requirement, no premium tax credits, no nothing other than a Form 1095B, however the 1095B only indicates coverage from Feb 2015 - Dec 2015. So Jan 2015 could be an issue?

This ACA is driving me crazy!

Sandy

[Burke]

......, however the 1095B only indicates coverage from Feb 2015 - Dec 2015. So Jan 2015 could be an issue?

This ACA is driving me crazy!

Sandy

Yes, if no coverage in Jan, then penalty for one month.

[TaxGuyBill]

On the scenario for the other dependent not claimed, however, has the Medi-Cal - do I have to complete form 8962 or 8965 - dependent has no tax filing requirement, no premium tax credits, no nothing other than a Form 1095B, however the 1095B only indicates coverage from Feb 2015 - Dec 2015. So Jan 2015 could be an issue?

Did the dependent have insurance in November and December of the previous year (2014)?

If so, Form 8965 is filed for a "short coverage gap".

If not, then they owe the prorated penalty for 1 month (no Form 8965 is actually filed, but the penalty calculation is probably on a 8965 worksheet).