Can I claim my son on taxes if my ex has him on market place insurance? (this year is my turn to claim the dependent on taxes).

[marialent3]

according to our divorce agreement, each parent will claim the child every other year, we have 50/50 custody, my ex has marketplace insurance for our son and himself, I have a private insurance

[leeloo]

Yes, you can still claim your son, assuming you meet the requirements. You will need to include a copy of the 1095-A on your return, showing that your son is covered by the ACA.

[Hal_Al]

For tax purposes, there is no such thing as joint custody (50/50), regardless of what your legal agreement says. The requirement, to be custodial parent, is that the child live with you MORE than 50% of the time. One of you has to be the custodial parent and the other the non-custodial parent. The IRS goes by physical custody, not legal custody. 

Yes, the IRS expects you to count the numbers of nights the child sleeps at each parent's home. It is allowed  for you to arrange the children's schedules so that one child spends more than half the year with the parent that is claiming him every other year.  

In the rare case (could probably only happen in a leap year like 2020), where the time that  each parent has the child is exactly equal, then the parent with the higher income (AGI) is the custodial parent, for the purpose of determining who has first priority on claiming the child as a dependent. But then neither parent can claim a Qualifying Child dependent, for some tax benefits because neither parent had the child the required MORE than half the year. (no earned income credit,  based on that child, and the child would not qualify the parent for Head of Household filing status).

 There is a special rule in the case of divorced & separated (including never married) parents. When the non-custodial parent is claiming the child as a dependent/exemption/child tax credit; the custodial parent is still allowed to claim the same child for Earned Income Credit, Head of Household filing status, and day care credit. This "splitting of the child" is not available to parents who lived together at any time during the last 6 months of the year; then only one of you can claim the child for any tax reasons. The tax benefits may not be split in any other manner.

Note in particular that the non-custodial parent can never claim the Earned Income Credit, Head of Household filing status or the day care credit, based on that child, even when the custodial parent has released the dependency to him.

 So, it's good idea to let the other parent know that you will be claiming those items, as many first time divorced parents are not aware of this rule and may try to claim those items, which will cause the IRS to send out letters.

Ref: https://www.irs.gov/publications/p17#en_US_2017_publink1000170897

Scroll down to "Children of divorced or separated parents (or parents who live apart)"

[Critter-3]

NOTE ... if the child is listed on the other parent's 1095-A from the marketplace insurance then you MUST get a copy of that 1095-A to enter on your tax return.  If you don't the return will be rejected until you do.

NOW ... the premium tax credit in column C of the 1095-A  can be allocated between your return and the ex's in any manner you both deem agreeable as long as the % between you both  adds up to 100%.   So if you play nice together you can maximize the allowable credit between the 2 returns ... an opportunity to do good for both of you.

[marialent3]

Thank you. Would the other parent be penalised by IRS for claiming the dependent for market place insurance if I claim the dependent on taxes?

[Critter-3]

NO ... one has nothing to do with the other. 

[marialent3]

Thank you. Would I be penalised by IRS if I claim my son on taxes and my son has marketplace insurance through the other parent? The market place insurance is solely based on the income of the other parent. 

[RobertB4444]

The child's social security number is included with the marketplace coverage that the other parent has.  In order to include that child in their marketplace coverage the other parent had to claim that they were part of their household.  

To do this properly the other parent should have gotten separate marketplace coverage for your child so that you could include their coverage on your tax return.  

Since the coverage is joined you won't be able to file an electronic tax return that includes your child without also including marketplace coverage on your tax return. 

 @marialent3

[marialent3]

Thank you, the market place coverage is not joined, I do not have market place insurance, my son does through his father and we are divorced. 

[RobertB4444]

Then if you claim your son you need to put his marketplace coverage on your return.

@marialent3

[acauthon76]

I have the same issue. It is my year to claim my son but he was on his dad's marketplace insurance. His dad did not get separate policies so the 1095 shows the total for both for each month. I don't know how to separate the amounts so I can file my taxes. 

[Critter-3]

You will simply enter your child as the covered party in the 1095-A section and do not enter anything of the dad at all.   Then fill in the lines 21 - 33 as written on the form  and pick the allocation percentage that you and the other parent have agreed to take since the IRS allows you to decide how much of the PTC will be claimed on each return as long as it adds up to 100% between the 2 returns.  If you and the other parent play nice you can both win.  

[MichaelG81]

Yes, you have to allocate once you have entered your premium tax credit amount agreed upon between you and taxpayer who owns policy or person who received the 1095-A, as Critter-3 stated.

You will get to this page on both desktop and online versions once done entering the amounts agreed upon. Make sure to select "I share this policy with another taxpayer" and enter that information seen on-screen below.

@acauthon76 

[acauthon76]

I tried that and it was rejected. His dad is paying 100%, so I put 0% for myself. Not sure what else to do. 

[Critter-3]

What is the exact error message or code ?