If my 18 year old son is on my 1095-A. He worked in 2018 earning $5000. Must I add him on 1095A on MY tax return even though I will not be claiming him as a dependant?

[Carl]

Just pointing this out, in case it matters to you. If your son was "under" the age of 19 on Dec 31 of the tax year, then his earnings do not matter. He qualifies as your dependent provided:
Your son (not you) did not provide more than 50% of his own support and;
He lived in your household for at least half of the tax year.
Now if there is some valid reason why your son will not be checking the box for "I can be claimed on someone else's return" on your son's return, then he will need a copy of your 1095-A. You will also need to indicate on your return the "allocation" of coverage that does apply to your household. For example, if he is your only son and does not qualify as your dependent for some reason, then your household gets 66% of the 1095-A allocated to it, and your son gets 33% allocated to him.

[jdmd1893207]

Thanks so much Carl! I should get specific. He turned 19 in March 2018, and earned $5200. Me, wife and him are listed on 1095A. I assume we dont claim him as a dependant? If not - how do we proceed with insurance portion of return?

[Carl]

Did your son meet all of the following in 2018? I ask, because at that age if he meets all the following, then you qualify to claim him as your dependent, and his earnings just flat out do not matter.
 - Was under the age of 19 on Dec 31 of the tax year and;
 - Was enrolled in an accredited institution of higher learning (college, vocational school, etc.) as a full time student for any one semester that started in the tax year and:
 - Was enrolled in a course of study that will lead to a degree or other credentialed certification and;
 - Did not provide more than half if *his* *own* support. (scholarships, grants, 529 funds, money from parents, gifts from Aunt Mary, etc. do not count for providing his own support.)
Now I already know the answer to that last requirement is "no, he did not provide more than half of his own support"< because it's just not possible if he only earned $5200 in 2018.

[Carl]

Oh, I've not ignored the insurance stuff. Just need to "back up" a bit is all, to make sure we're both on the same page. If we do things wrong, it's you that has to deal with it, not me. So I want to help you and your son get this right the first time. 🙂

[jdmd1893207]

Thanks again Carl. Yes we will clarify. He turned 19 years old in March 2018, he did not attend full time college and he had 2 little jobs and earned $5200. Me, my wife and him are all listed on the 1095A. I assume we cant claim him as a dependant because of his earnings and lack of school? So - how do we proceed with insurance portion of return? He was listed on the thing because he was "supposed" to be a full time student in 2018 but he dropped out before he started.

[Carl]

You're right. Since he earned more than $4,150 in 2018, you can't claim him as a dependent. I just wanted to check that for sure before dealing with the health care stuff, so we handle it all correctly on both tax returns.
Basically, on the screen that asks for the numbers from the 1095-A you'll fill that out and then continue.
Then on the next screen you will select "Shared this policy with another taxpayer who is not on my taxes" and continue.
Then on the next screen you enter your son's SSN and if the policy was for the whole year, start month is Jan and end month is Dec.
Now assuming there's only three people listed on the 1095-A (you, spouse and son) your allocation percentages for all three boxes that ask for a percentage, will be 67%. Then continue on through.
Your son will use this same 1095-A information on his tax return. Now on his return for the SSN of who it was shared with, he will enter the SSN of the *first* person named on your joint tax return. Then all of his percentages will be 33%.
Now your son will need to have a copy of that 1095-A because the IRS is going to send him a letter requesting that he fax the IRS a copy of that 1095-A. So make a copy and give it to him now, so he has it on hand when that letter comes. No, do not send a copy of the 1095-A early. Wait until the IRS specifically asks for it. Trying to jump the gun with the IRS has a very high probability of gumming up their system and delaying his refund. So this is where patience on his part, is a virtue. 🙂