Yes, that is correct. If this person had more than $4,300 of gross income and was over the age of 18 or 24 if a full-time student, then they are not eligible to be claimed by anyone. They should indicate that by answering No to Someone can claim me as dependent on their tax return.
If your marketplace insurance reported on 1095-A has both yourself and this person as covered individuals, then you will have to allocate the premiums between yourself and the other taxpayer.
If this person is your child who does not qualify as your dependent but is under the age of 26, then you may allocate the premiums however you wish if you received advanced premium tax credit. To allocate your premiums in TurboTax:
- In Federal > Deductions & Credits scroll down to Medical and click Start/Revisit next to Affordable Care Act (Form 1095-A)
- Enter the information as it appears on Form 1095-A
- Let us know if these situations apply to you click I shared the policy with another taxpayer who's not on my taxes.
- Enter the allocation information that you have determined. Please note, the three percentages must be equal, if you are sharing 75% of the premium percentage, you must also share 75% of the SLCSP percentage and the advanced payment of PTC percentage.
If you claimed 75%, the other person must claim the other 25%. Do not do the allocation yourself from the numbers on the form. Enter Form 1095-A with the exact numbers it reports.
If you did not receive any advanced premium tax credit, then the process is different.
