If I can NOT deduct my dependents, who are on our healthcare plan, do I have to enter their MAGI for Health coverage?

[helpme2017]

I cannot use a deduction for my adult children (21 & 25), since they both work.  Both have taxable income.   They are still on our family Health Insurance plan.  Do I enter their MAGI in the health coverage section, since they are NOT considered my dependent on rest of tax forms

[MiriamF · Accepted solution]

You can't claim your 25-year-old as a dependent if he earns more than $4,050. And if he earned less than $4,050, then he must have lived with you all year. If your 21-year-old was not a full-time student, then the same criteria apply to him.

You may claim your 21-year-old if:

1. He was a full-time student, and
2. He lived with you more than six months. (Being away at school counts as a temporary absence.), and
3. You paid more than half of his living expenses.

If you are able to claim your children as dependents, and they are insured under a Marketplace policy, then you would have to report their MAGI only if they are required to file a tax return because their income exceeds the filing requirements ($6,300 or more in total income, or more than $1,050 in unearned income, or at least $400 in self-employment income).

If you are unable to claim your children as dependents, then you are not responsible for their health coverage, and you don't have to report their MAGI.

If your shared policy is a Marketplace policy, and you got a 1095-A, and either of your children cannot be claimed as a dependent, then you will need to determine their shared percentage of the policy. Their percentage can be anything from 0-100%, as long as everyone's percentage added together equals 100%. Understand that if you paid too much for the plan, they will get their percentage of the refund, and if you paid too little, they will owe their percentage of the balance.

To enter all this in TurboTax: 

1.       Type "form 1095-A" in the Search box, then select Jump to form 1095-A.  

2.       When you get to Was anyone enrolled in any of these less common plans in 2016, click Yes.  

3.       Under What type of plan were you enrolled in, select Obamacare plan.  

4.       Enter the information on your 1095-A exactly as printed, then click Continue.    

5.       Under Do any of these situations apply, check Shared this policy with another taxpayer who is not on my taxes.  

6.       Under Since this is a shared policy, we need to know how to allocate the policy amounts.  

Enter your percentage amount in each of the three boxes for Premium, SLCSP and PTC. (Click on the screenshot below for an image.) 

[Joe-Blue77]

I obtained marketplace insurance for 2018 and indicated a family size of 4.  The advanced premium tax credits that I received were based on a family of 4. Now I have 2 sons and it turns out that they must each file their own return. I understand that I can allocate their premium credits onto my return when we all file 8962, but I have been told that I can only write 2 for my tax family size on line 1, because they are not included on my return.  This will greatly change the premium credit calculations on lines 2-8, because they are based on the family size entered on line 1.  How do I fill out the forms so that I can claim all the premium credit on my return, and use a family size of 4, which is the true size of my insurance family?