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) Yes, if you are claiming your adult child as a dependent on your return and they receive insurance through the marketplace, you would be required to enter their 1095-A on your return. If you do not include the 1095-A, your return will be rejected.
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. No, as long as they earned less than $4,700 for the year and you provided over half of their support, then this will not impact the tax situation since they are your child. If this was NOT your child, say just a friend, you would not be able to claim them since they did not live with you for the full 12 months of the year.
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. No, this will not cause a rejection. If you filed without the 1095A, it would cause a rejection.
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. It sounds like you have in some way looked at the numbers both ways, but yes, if your income is over 400% of the Federal poverty level , you will need to repay the Advanced Premium Tax Credit on your return. I don't know if you did this on TurboTax with and without your child, but if you did not, then to be sure that the change in filing status and the change on your state return would give you a better result it would be a good idea to do it both ways.
Would this also mean no opportunity to efile? Better to file paper? Nothing you have described in your situation would keep you from e-filing your return. It is better to e-file whenever possible as paper takes much longer to process.
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