Dependents marketplace insurance

[Jasoneveritt]

My wife and i Filed our 2024 taxes and claimed her son who lived with her all year as a dependent like she does every year. It was rejected due to missing form 1095-A, since my wife’s ex-husband is required to carry health insurance for their son. He’s not allowed to claim him as a dependent though. Once we obtained the form 1095-A and entered the info, what we owed was $10k+! We did not carry the marketplace plan, so it’s factoring our income, instead of the fathers. We are not sure where to go from here…..

[Vanessa A]

When you enter the 1095-A, did it have the fathers name on it as well?  If so, you can select I shared this policy with another tax payer, then you (or her) and him can agree to allocate an amount to him and to you.  Since he pays 100% of the premium, he can claim 100% of the policy.  This is NOT required and if they cannot agree, then they both must allocate 50% on each of your returns.

If you end up not able to agree and having to allocate 50% on each return, you do have the option of not claiming her son.

 

[Jasoneveritt]

Thank you! From my understanding, the dad signed up for this plan and included his son when he wasn’t able to claim him as a dependent, therefore, he had to lie to get the plan. We have to remove the dependent off of our taxes in order to remove the amount of premiums needing paid back, based on our combined income. Will the dad be required to claim this dependent on his taxes, even though according to the IRS rules, he doesn’t qualify due to the child spending zero overnights at his house throughout the year?

[Vanessa A]

No.  The father is not forced to claim the child. As mentioned above, the father is able to claim 100% of the premium allocation, while you can claim 0%, if he will agree to that.  If not, then to avoid paying, removing your dependent may be the best option for you.