Can claim my son as a dependent if he qualifies under every requirement, but I don't cover his health insurance?

[pergsing2211]

My son is 22 years old, was a full-time college student for the first 5 months of this year and graduated in May. I have always claimed him as a dependent as I have provided most of his financial support except for his medical insurance, which his father was required to cover as per our divorce agreement. When his father lost his job, he enrolled my son in Medicaid, (under the ACA), of which I was not aware.  Can still claim my son as a dependent if I still provide most of his support, (he's been living with me since graduation), but not providing his medical insurance? I can't afford to add him to my insurance and he's still on Medicaid. I am pretty sure his father did not include my income when enrolling him.  Can I still claim him for 2017? 

[DoninGA · Accepted solution]

Whomever pays for your son's health insurance is not relevant for claiming him as a dependent.

If he is under the age of 24 on 12/31/2017 and was a full time student for at least 5 months in 2017 then you should be able to claim him as a dependent under the Qualifying Child rules providing he meets all the requirements under the rules.

To be a Qualifying Child -

1. The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.

2. The child must be (a) under age 19 at the end of the year, (b) under age 24 at the end of the year and a full-time student or (c) any age and permanently and totally disabled.

3. The child must have lived with you for more than half of the year. Temporary absences while away at college are considered living with you.

4. The child must not have provided more than half of his or her own support for the year.

5. If the child meets the rules to be a qualifying child of more than one person, you must be the person entitled to claim the child as a qualifying child. 

6. The child must be a U.S. citizen or U.S., Canada or Mexico resident for some portion of the year.

7. The child must be younger than you unless disabled.

[pergsing2211]

Just to clarify, under the ACA, I am not personally required to provide his health insurance in order to claim him as a dependent as long as he meets the other requirements?

[DoninGA]

If you claim him as a dependent on your tax return he is required to have health insurance so you do not have to pay a individual shared responsibility payment (penalty) if he does not have insurance.  Claiming him as your dependent does not mean that you are required to pay for his insurance, only that he must have insurance or you will pay a penalty when you file your tax return.

[pergsing2211]

Thank you! That is extremely helpful.

[TaxGuyBill]

However, it is possible claiming him *MIGHT* disqualify him from Medicaid.  Rules vary by State, so you may want to contact your local Medicaid office to get that cleared up.

[pergsing2211]

Thank you - I will have my son check into that.