Marketplace Premium Tax Credit

[gehinious]

My adult daughter is married, not legally separated, but is living with me.  Tax-wise, I can claim her as a dependent as I provide well over half of her expenses.  As a married dependent, is she eligible for the premium tax credit?  Do I claim the tax credit on my return?

[Critter-3]

You have many issues ... to start with are you sure she is your dependent to claim?  Support is not the only situation.  Her being married is another twist since if she needs to file then she can only file jointly or separately and the PTC is not available when filing separately.  

• What does "financially support another person" mean?
• Can I claim my relative or friend as my dependent on my 2019 return?
• Who can I claim as my dependent?

IRS interview to help determine who can be claimed:

https://www.irs.gov/help/ita/who-can-i-claim-as-a-dependent

https://ttlc.intuit.com/questions/3113432-who-can-i-claim-as-my-dependent 

[gehinious]

She's definitely a qualified dependent for tax purposes, but yes, if she files joint with her husband, I can't claim her as a dependent, and if she files MFS, she isn't eligible for the PTC.  I was hoping if she was a dependent, it would offset the MFS.  Sigh.   Thanks for your input!

[Opus 17]

The only way it could possibly work is if her income is less than $4250, and she files no tax return, not even MFS. And her spouse would have to file separately of course.  Then you could look at the other qualifications for claiming her as a dependent.

[gehinious]

Oh, if only it were that simple.  She applied 50% of the PTC to her 2019 insurance premiums while still filing jointly with her husband for 2019.  So she HAS to file this year to receive the other 50%. 

Thanks for your post, though!  Anything to make me think of a way around this....

[Critter-3]

If they are filing for a divorce and are still married in 2020 then filing a joint return then this situation is something that the attorney should address.