IRS letter says advance payments of premium tax credit made for marketplace healthcare coverage for me or my son am i supposed to provide his 1095A in my return?

[Critter]

If you are claiming him as a dependent then (a) you have to enter his 1095-A on your return  and (b) he should not have had marketplace insurance at his income level and filing status so it is probably going to hurt. 

[Critter]

FYI ... you may want to let the dependent go since they must be over the age of 18 and not in college full time ( only way to get the ACA insurance) since they are only worth $500 and you may owe thousands back in advance premiums.  

[caledoniatt2017]

Hi thank you so much for responding.  So are you saying that the only benefit right now for having him as my dependent is $500?  He was in college last year, but also worked a part-time job.  He had health insurance through Covered Cal that his dad organized (we are divorced).  he turned 20 in June last year.  Why would i owe money on advance premiums?  That part I don't understand.  How will dropping him as my dependent affect my tax refund?  Thank you so much.  I am so confused.  

[caledoniatt2017]

Also if I drop him as a dependent, he then must change his tax return.  However, I think last year I had him as a dependent and it was fine.  He has proof of medical coverage - isn't that what the 1095A is?

[Critter]

OK ... so dad got him health insurance thru the ACA which is why he got a 1095-A which needs to be reported on the return where the covered person is being claimed.  As a college student and a dependent he could not get the insurance on his own so did dad also have the ACA insurance ?  And was there any advance credit in column 3 of that 1095-A form ?  And now that you said the child was a college student there is also the education credit that you may be eligible for .... so I highly recommend you seek guidance with this matter with the CPA service you are paying for ( the LIVE service you are posting from)  since there are many moving parts that affects 3 tax returns.   

[caledoniatt2017]

Thank you - yes, pretty much that's it.  I just spoke to a CPA on the TT site.  I am working on the Options she gave me.  I now have the 1095A of my ex and it shows him and the two kids paying premiums of some $1700 a month for 2018.  He says he paid all these.  CPA said to either drop my son, amending my own as no dependents and have him amend his to claiming himself as his dependent, i.e. noone else claiming him, and lose $500 credit for myself, and because son's earnings were $7k he would probably have to pay nothing back - OR - if I can tell from the 1095A that there will be no money to pay back, to go ahead and submit that to the IRS.  How do I tell from the 1095A?   Looks like they paid HUGE premiums already.   Thanks so much for your help.  

[Critter]

Since there was more than one person on the 1095-A the column C credit needs to be allocated between your return and the ex's ... talk to him ... if he took 100% then you will allocate 0% and then you can keep the child on your return ... surprised the CPA did not also give you that option.

[caledoniatt2017]

thank you!!  So if he takes 100% on those healthcare coverages for himself and the two kids, I can still keep my son on my return, and what - go ahead and fill out form 8962 and provide the 1095A to the IRS?You are incredibly helpful.  Thank you again.

[TaxGuyBill]

"and have him amend his to claiming himself as his dependent"

No.  No, no, no.  If you are ABLE to claim him as a dependent, he can NOT claim himself (and he would be disqualified from the credit).


Yes, *IF* the 1095-A has both your ex and your son on it under the "Covered Individuals" section, AND your ex is willing to claim 100%, that is the best option.  Your 8962 would show a bunch of zeros and the allocation would be shown on Line 30.  If the 1095-A only shows your son under the "Covered Individuals", that can't be done.  If your ex is not agreeable to that, that can't be done.

[caledoniatt2017]

Sorry unable to respond as traveling.  No - I meant that I would amend to say no dependents and he would amend to say he is not anyone’s dependent.  I will be discussing all options with ex today. Thank you again for your help.

[TaxGuyBill]

Your son must indicate he CAN be claimed as a dependent, which disqualifies him from the credit.  Unless your son applied for insurance himself (and he is the only one on the 1095-A) because he THOUGHT he would not be a dependent, there is no reason to amend your son's tax return, as the 1095-A can NOT go on his tax return.