topic 1095-A in Deductions & credits

1095-A

danyell757 — Fri, 26 Feb 2021 16:59:30 GMT

When I applied for Healthcare coverage for the year 2020, I based my application on 2 dependents with only "my income." Initially we knew my dependent wasn't going to exceed the income guideline to require to file his own return of $12,200, so therefore, I did not count that income. However he is now "required" to file a return cause he received unemployment during the year that exceeds the $1100, however still made under the income guidelines. He now wants to file his own return and not allowing me to claim him. I am aware that I can select the option, "I shared this insurance with someone not on my return." However with the additional income he made and keyword "required" to file a return, where does this income get counted in reconciling the 1095-A. I do not see anywhere I can claim it nor doing his return does it ask for my income to reconcile it. Looking for some help. Thank You

Re: 1095-A

AmeliesUncle — Fri, 26 Feb 2021 20:50:39 GMT

@danyell757 wrote:
He now wants to file his own return and not allowing me to claim him.

I am aware that I can select the option, "I shared this insurance with someone not on my return."

No. Although he needs to file his own tax return, because you are ELIGIBLE to claim him as a dependent, he does not 'claim' himself. He MUST say that he CAN be claimed by somebody else.

No, you can't select that because your son is ELIGIBLE to be a dependent.

You do have the option to not claim him. However, that does NOT mean he can claim himself, so both of the things I mentioned above would still apply.

If you were to choose to not claim him as a dependent, you are right, you would not need to include his income for the 1095-A. HOWEVER, you also would now have a SMALLER "Family Size", which would decrease or eliminate the Premium Tax Credit. So choosing not to claim him might very well cost you more money than including his income for the 1095-A.

Re: 1095-A

ReneeM7122 — Fri, 26 Feb 2021 22:30:25 GMT

When your son answers YES to the question, "can someone else claim you as a dependent?" the software will take care of the healthcare issue. He won't be required to have the coverage because he already has it through you.

About the dependency issues, according to the IRS rule, if a person CAN be claimed as a dependent on someone else's return (a parent),he cannot get credits that you are entitled by not "allowing" himself to be claimed by you. Furthermore, not claiming him would cause you to lose credits that you can receive and to reduce your family size, as previously mentioned. So essentially it would be more tax to the IRS.

Here is a TurboTax article that discusses claiming dependents.

@danyell757

@AmeliesUncle