Hello,
For a qualifying adult child 28 years old who made less than $4,700 in 2023 and who now subsequently can be a dependent on parent tax return, would it be appropriate to include the 1095-A the qualifying adult child was issued under the adult child’s tax ID on the parent return (the parent did not participate in the marketplace, insurance was through employer). The ability to be a dependent was unexpected and related to adult job layoff, but the market place insurance was already in place.
If this is the case, most of the subsidy would need to be paid back due to income of parent, but would primarily be offset by the change in the parent’s standard deduction changing from Single to Head of Household. The real savings would come from savings on the California state return that would also go from Single to Head of Household with not impact from subsidy repayment.
The adult child will still file 2023 taxes noting that they can and will be claimed as a dependent on someone else's return, and I assume would make no entry for the 1095-A received in their tax id in that section of Turbo Tax of their return. (This would now be on parent return)
The adult child did receive employment opportunity in another state and moved permanently in Nov. 2023, but lived with the parent for 11 months of 2023. Not sure if this has an impact on the situation.
Not sure if the fact the 1095A is in the child’s tax ID will cause reject of the parent tax return if the parent did not have insurance through the marketplace but is filing that info because they are now claiming the child as a dependent.
Would this also mean no opportunity to efile? Better to file paper?
Thank you
