1095a Tax Implications

[Conrad123]

Here is a senerio, please tell the tax implications on Sally's return for 20X3. 

Sally is on a 1095a health insurance plan with her husband Joe, and daughter Gwen. Gwen got married in September of 20X3, and filed jointly with her husband in March 20X4. Gwen was previously listed as a dependent under her mother's 1095a health insurance plan during 20X3, and the plan's coverage was from January 1, 20X3 to August 31, 20X3. Does Gwen have to be filed as a dependent under her mother's return for the tax year 1/1/20X3 to 12/31/20X3? Also, what will the mother's tax implications be for the 20X3 due to the change in household? 

Also, what if Sally did include Gwen as a dependent, how much credit would she receive? Keep in mind Gwen is 21. 

[Vanessa A]

No.  Gwen does not need to be included on her mothers return as a dependent because she was on her Marketplace policy. 

When Glen her return, she will need to include her mothers 1095-A on her return as well.  Sally and Gwen will both need to mark that they share the policy with another taxpayer.  Sally and Gwen can both choose whichever amount to allocate to themselves they will just need to  make sure the percentage adds up to 100%. 

Gwen will also need to mark on the form that she got married in 2023.  This may make an issue if she claims anything more than 0%, but it also may not depending on income. 

The credit or tax implications are determined by many factors including income, household size, and SLCSP.  You can change the allocations in TurboTax to see which works best for you. 

How to Reconcile Your Premium Tax Credit

[Conrad123]

Now what if Gwen got married in September 30, 20X3, but the policy she was on with her mom was only from 1/1/20X3 - 8/31/20X3, what tax implications would this have on her mother's return if Gwen filed married jointly with her husband, being that she got married after the policy ended? 

[MarilynG1]

Since Gwen filed her own return, she will not be included on her mother's return at all.

Only in the 1095-A section will her mother indicate that she 'shared the policy with someone not on her return' and give Gwen's SSN.

We would not be able to predict tax implications, since it depends on several factors.  

Enter the 1095-A info as shown on the form into TurboTax and choose different allocation %'s to see what affect that has on her mother's return. 

Here's more info on How to Enter Form 1095-A and Allocating 1095-A.