Hello, in 2019 my wife and I were able to claim my two stepsons (wife's sons) as dependents because both were between 19 and 24, were eligible as full time students, and lived with us full time. They worked; however, we covered all of their support.
In 2020 we cannot claim either one as a dependent since neither one attended college classes, and both made over $4300 individually.
For 6 months in 2020, we had the marketplace type of medical insurance whereby the Federal government partially subsidized part of our medical insurance premium amount based on our whole household income. Since we live in CA, I was told by Covered CA (name given to the marketplace insurance source within CA) that I had to include the complete household income in their application, even if I did not think I was going to be able to claim my two stepsons as dependents. This is what I did, and included both of their income projections as well as mine. My wife had no income in 2020.
For our 2020 tax return, in form 8962, Premium Tax Credit (PTC), is it correct that I only enter my AGI and not to enter either stepson's total AGI since my wife and I could not claim either one as a dependent? This would seem fair. Is this correct?
As a 2nd question, it does not seem right that I was asked by Covered CA to include the whole household income to determine how much our medical insurance premiums would be subsidized in my application with them if we cannot claim my two stepsons as dependents. If this thought process is correct, this means we paid too much for medical insurance and should get part of this money back? Is this correct?
Thank you
