When claiming my parents as dependents who have obamacare, what can I do to reduce my tax liability b/c the amount is increased since it includes as my health insurance?

[crks_patel]

I have health insur. from work for my family & me. I claim my parents as dependents & they have Obamacare. When filling out their 1095-A my tax liability goes up, when I do not fill it out it stays within usual range. It goes up b/c it's including my insur. info. What should I do to reduce tax liability to a normal range? 

[MarilynG · Accepted solution]

Your tax liability going up has nothing to do with your employer insurance, as you don't enter any info about that in your return. 

If you claim your parents as dependents, any amount of Premium Tax Credit they received showing in Column C on their 1095-A was calculated on the total income they reported when they signed up for the plan (which may have been their income only). 

If your income is much larger, then the PTC has to be repaid, as they should not have received it, based on your income on your tax return. 

If you do claim them as Dependents, you only get $500/ each as a deduction this year.  It might be better not to claim them as Dependents, if the PTC to be repaid is more than that amount.  In that case, you won't have to enter the 1095-A in your return.

Click the link for more detailed info on the PTC.