Dependant's MAGI with reguards to Health Marketplace Insurance if he is not covered and only lived with us a portion of the year.

[MichaudCJ]

Do I need to include my dependent child's MAGI in the 1095-A healthcare section of my taxes if he is not covered on the Health Marketplace plan, and only lived with us for 8 of the 12 months last year? I don't see why his income should be considered, or have an affect, on my healthcare plan amount if he is not even on the plan.

It's possible I'm looking at this the wrong way. so some background facts:

- I received 2 1095-A forms this year, as I had a significant pay increase in June that required me to update my Health Marketplace coverage. One covers Jan through June, the other July through Dec.

- My dependent turned 18 in July, and essentially moved out in September.

- My dependent is NOT (and never has been) covered on my Marketplace Health Policy, only my wife and I are, BUT he is (was) listed as a dependent on the plan for 2021. He is no longer listed on this years plan as a dependent.

Thanks for any advice.

[RaifH · Accepted solution]

Yes, if your dependent child had enough income that he is required to file a tax return, then his income must be included in your household income to determine the allowable premium tax credit on marketplace insurance. Generally, a dependent is required to file if they exceed any of the limits on this table. 

The household income determines how much premium tax credit you are eligible for. It does not matter if that particular member of the household is covered by the insurance. It would be the same if your spouse had their own coverage through their work. Their income would still be used to calculate your allowable premium tax credit even if they are not on your marketplace insurance policy. 

[MichaudCJ]

Thanks for the reply and the info. It is very unfortunate info, but alas, it is what it is.

I personally think this is a bit ridiculous considering the "household" doesn't see a single penny of my dependent's income. My taxes shouldn't be affected by income that I never see, nor that gets used towards the household. Since he earned that income, and is required to file his own tax return because of it, that's basically like the IRS double dipping that same income...

[MichaudCJ]

One last question if you would.

I've got the amount of my son's MAGI, and entering it would normally be straight forward. However, since I received 2 separate 1095-A's this year, and TurboTax is asking me to enter his MAGI for each of them, what route should I take? Should I enter the total into just one of them, leaving the other at 0 (or not even checking the box for the second one), or since each 1095-A covers a 6 month span, should I divide the MAGI amount in half and apply half to each of the 1095-A's?

Thanks.

[RaifH]

Put the entire amount of your son's AGI on the first 1095-A. Only one premium tax credit form is filled out for all the 1095-As. Once you enter your son's information on the first one, it should automatically carry over when you enter the second one. You should not have to enter it again.