1095's for children who are dependents

[tsuewalker]

1. I have a 1095-A for a young man who was listed as having insurance under his parent's name. However, he is not a dependent of the taxpayer. He lived with them from January -June when he was still in high school and then he joined the military where he was gone for the rest of the year. Is he still considered a dependent for the year? Do I do something different on the return since he doesn't qualify to be a dependent?

2. I have another 1095-A for another client who has her son listed has listed for having health insurance through his mother. The form shows what was paid for him for insurance for September-December but he is exempt due to the fact that he has a Native American exemption number. Do I do something different on the return with these amounts since he was already exempt?

Thanks for your help in advance

Tanya

[Burke]

1. If he was a student for at least 5 months of the year, then he CAN be claimed as their dependent. BUT, he probably has to file a military W-2 and may claim himself if he does his own return. Need to intervene fast to make sure which one gets the exemption.

2. Not enough info to determine if this one is a dependent or not. Is that your question? Exempt from what?

[TaxGuyBill]

2) He may be exempt from the penalty for any months that he did not have health insurance, but that does NOT change any calculations of the Premium Tax Credit based on the 1095-A.

If the 1095-A covered other people that are not on the tax return, be sure to fill out the allocation percentages in Part IV of Form 8962.

[tsuewalker]

Burke, exempt from ACA because he's Native American and then the mother received a 1095-A with dollar amounts on it that I'm wondering what to do with. Do I report those amounts on another form? I'm pretty confused when it comes to the ACA.

[TaxGuyBill]

He is not exempt from the ACA. He is exempt from the penalty for not having qualifying health insurance. Being Native American does not affect other parts of the ACA.

[Burke]

. Do I report those amounts on another form? I'm pretty confused when it comes to the ACA.

See taxguybill's reply.

(1) You complete Page 1 of Form 8962 to reconcile for the PTC amounts.
(2) If the son is her dependent, and has income over the filing threshold for which he has to file a return, then his income is included on Line 2b.
(3) If the son is not her dependent and is filing a return and claiming himself, then you fill out Part IV of Form 8962 (for both of them) to allocate the premium. (Can allocate any way they want.)
(4) Form 8965 is used to claim an exemption from the penalty, if necessary.

The IRS instructions for Form 8962 and 8965 are available on their website, as well as Pub 974. Download and review them for these situations.

[TaxGuyBill]

I think Burke meant Publication 974.

[Burke]

Yeah....thanks, I fixed it. Time to go home and get one of those Bloody Mary's Roland was talking about earlier....