Daughter wasn't covered on my health insurance. Now it's giving me a credit for health insurance.

[kyliem123]

My daughter was covered on her dads health insurance until he got fired in September. She got Medicaid that dated back to September 1. My husband, myself and our two boys have bcbs through the marketplace. When I put in the information  from my 1095-A it is giving me a credit. Is this correct or not? It didn't give me any place to put in who was on the insurance. I am thinking it is because my daughter is on there too and I am thinking this may not be correct. any help???

[TaxGuyBill · Accepted solution]

It is quite possible that it is correct.  However, without actually seeing your tax return, it would be impossible to say for sure.

Even though your daughter was not on the Marketplace insurance policy, she does affect the credit.  The net effect is that your credit would be larger with the 'extra' person on your tax return, than if that 'extra' person was not on your tax return.  Because she adds another person to the tax return (but with the same income), your Federal Poverty Level percentage is lower (Line 5 on Form 8962, which calculates the Premium Tax Credit), which increases the credit.