Health insurance premiums for non-dependent

[cgmartin]

When my son turned 26 years of age, he was dropped from our health insurance plan. I can no longer list him as dependent because of his age and because of what he earns from a part time job. I have continued to pay his monthly premiums for his new health plan. Can I continue to list the amount of his premiums on my tx return?

[TaxGuyBill]

Maybe.
Are you self employed?
Do you provide for over 50% of his support?

[cgmartin]

I am retired. He lives at home and I pay for about 90% of support.

[TaxGuyBill · Accepted solution]

Yes, you can count his premiums on your tax return.

For purposes of the Medical Expense deduction, a 'medical dependent' can have over $4050 of income, if all other tests for dependency are met (such as providing over 50% of support).

However, only the amount of medical expenses that are over 10% of your income (7.5% if age 65 or older) will be actually used as a deduction, and if you don't already Itemize your deductions on Schedule A, the deduction will further be reduced or eliminated.

[cw47]

What about this scenario:

Tax year 2021:

Child, age 24 at end of 2021, not a student, made > 50% of her income, so no longer a dependent (I assume).

She was on our family ACA plan in WA for Jan-June, and I received APTC for all 4 of us.

She unexpectedly moved to IL and got an ACA plan for herself. * I paid the premiums * although we didn't take any APTC. This coverage lasted 4 months, Jul - Oct.

She got a job with health benefits for Nov-Dec.

I'm clear on claiming all of the PTCs for my return for Jan-June (she'll just put 0% in the appropriate boxes in Part IV of form 8962 and I'll put 100% on my return).

My question is, can I get any credit benefit (other than, "Thanks Dad!" 😉 for the premiums I paid for on the IL plan she is on? I'm thinking no since her SS number one is the only one on that 1095A form...

[RaifH]

You are correct, you can't get any benefits from that second 1095-A, but she can. 

If the July through October coverage was only for her in Illinois, she will have to report that on her tax return, and the premium tax credit will be calculated based on her household size and household income, even if you were the one that actually paid for the coverage. 

You can work it out with her whether the additional credit on her return is worth more than just a "Thanks Dad!"

[mblendy]

Are premiums and benefits taxable?

[AliciaP1]

No, premiums and benefits are not taxable, but if you received a 1095-A with the Premium Tax Credit, your situation may lead to you having to pay some of the credit back.

@mblendy