How To Complete the Premium Tax Credit for Healthcare With College Student Leaving Plan Mid Year

[lanceman02]

My daughter graduated from college in May and started working full time, with company-provided insurance on July 15th of this year.  

She was on our ACA marketplace plan.  I called up when she was getting her insurance setup with her new employer and we switched our ACA plan down by one dependent (removing our daughter from the plan).

How do I go about reconciling this when I file my 2019 taxes?  In the past couple of years while we've had an ACA plan - we've received form 1095-A.  I'm not sure, based on looking at last year's form - how it knows that I removed a dependent from coverage?  Is there some methodology to go about calculating how this works?  I feel like I shouldn't be claiming my daughter's income (at least not all of it) in the Premium Tax Credit calculation - but not sure how this is going to play out.  I'm trying to determine roughly how much I'll make, to get an estimate of if the Premium Tax Credit we get is close or if we'll owe more money when we do taxes.

One final note: in 2018 (and previous) my daughter has been claimed as a dependent on our taxes.  For 2019 she will not be claimed as a dependent.  She is single.

Any help on this is very much appreciated!

Thanks,

Lance

[Critter]

Ok ... this year you will get 2 1095-A forms reflecting the change ... simply enter them both as printed ... follow the screen instructions. 

[Critter]

and if she will not be your dependent for 2019 then both of you will enter the 1095-A that has her on it on both your returns ... and you get to allocate the credit between the 2 returns in the way that produces the best results for both returns combined.  This will not be the simple portion as you will need to coordinate the returns ... if this feels like too much you may want to seek professional guidance for this tax year. 

[lanceman02]

Great - thanks for the reply!  I'll be helping my daughter with her return anyway, so it should be no problem to do them side by side.  Appreciate the help on this!

[Carl]

One thing that will make this significantly easier for the 2019 taxes, is that there are no penalties or fines assessed any more, for not having coverage. At worst, if your income was higher than you reported when you enrolled in ACA for 2019, you'll just have to pay back some of the premium offset. But that's all, with no penalties or fines.