My wife and I have ACA insurance. Our policy also contains our 22 year old son who is a full time college student. We pay the premium for our son. At the time the ACA application was completed we assumed that we would claim our son as a tax dependent and included him on our policy. We do not receive a APTC and as such columns B and C in Part III of the 1095-A are blank.
As it turned out, our son's summer internship included paid living expenses which were included in Box 1 of his W-2. The amount of paid living expenses are substantial. If we claim him as dependent and include his MAGI on our 8962, our PTC refund will be significantly reduced from what it would have been if had not received company paid housing.
Therefore, I have the following questions:
1) Is it permissible to not include our son as a dependent on our taxes and have him indicate on his taxes that he qualifies as a dependent on someone else's taxes but is not being claimed? It is my understanding that this would allow us to exclude his MAGI from our 8962.
2) include the premium we paid on his behalf in our 1095-A Part III, Column B (SLCSP).
3) answer "no" to the question on our TT interview that asks if we share this policy with someone who is not on our taxes. It is my understanding that answering "yes" to this question would allow me to allocate a portion of the paid premiums to my son so he could claim a PTC on his tax return. In my case, i do not want this since a) i paid my son's premium and b) my son would not eligible to receive the PTC anyway since he could be claimed as a dependent my return.
The approach maximizes both our and my son's tax refunds, but is it kosher?
Thank you.
