8962 Shared Policy with Non-Dependent child

[jbpatx]

My daughter was a full-time college student from January through May 2022.  She was on my marketplace policy from January through July and effective August through December she was enrolled in her employer plan.  I would like to allocate 100% of the APTC to her even though she wasn't covered on the marketplace plan from August through December.  When I do that in turbotax, the software puts a zero in for Tax family size and I don't have to pay any APTC back.  Is that correct?  I'd like to allocate as much to my daughter as possible since her AGI is much lower than mine.  

[Anonymous_]

@Hal_Al 

[Critter-3]

First the 2022 program is not fully functional yet  and when it is you can only allocate the months for the shared time frame.  When the 1095-A forms have been issued you can follow the screen instructions carefully to enter them properly.

[Hal_Al]

Another  question you might want to ask: can your daughter be your dependent for 2022? 

Graduation year 

If he/she was a student (under 24) for at least 5 months and lived with you for more than half the year, and did not provide more than 1/2 his own support for the whole year, you can still claim him. Be sure he knows you're claiming him, so he doesn't claim himself. He can only be claimed once. But, he can "file taxes" without claiming his own exemption.

The real question is who should be claiming him in this "transition" year to adulthood. You two have to agree on who is going to claim his exemption. Each should do their taxes both ways and see which way the family comes out best.  Even then, you have to meet the rules. 

There are two types of dependents, "Qualifying Children"(QC) and Other ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, a relationship test and residence test. Only a QC qualifies a taxpayer for the Earned Income Credit.

The rule is that a child of a taxpayer can still be a “Qualifying Child” dependent, regardless of  his income, if:

1. he is a full time student under 24 for at least 5 calendar months of the year (graduating in May usually means you meet the 5 month rule)
2. he did not provide more than 1/2 his own support  (scholarships are considered 3rd party support and not support provided by the student). 
3. lived with the parent (including time away at school) for more than half the year

So, it usually hinges on  "Did he provide more than 1/2 his own support in 2022.

The support value of the home you provided is the fair market rental value of the home plus utilities & other expenses divided by the number of occupants. IRS Publication 501 on page 20 has a worksheet that can be used to help with the support calculation. See: http://www.irs.gov/pub/irs-pdf/p501.pdf  (page 15)