My dd graduates in April. Hopefully she will get a job with health benefits. At that time I will change dependent number on the ACA site. How is this going to effect my tax return when I won’t be able to claim her on my taxes but received 5 months of subsidies for her
ACA a dependent change mid year
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SecondCor521
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Welcome to the board! The admins would suggest that you consider introducing yourself in the "Hi I am..." section of the board.
I'm not a fantastic expert, but I believe that on your 2019 tax return, you will list your household size as whatever it is (you and your wife, and maybe any younger dependent children if you have any). Your ACA calculations will be based on what your household size is at the end of the year, meaning it will exclude your daughter.
Then you will list the subsidies you received further down on the form. Those subsidies will be compared to what you should have received based on your FPL (Federal Poverty Level) and the cost of the second lowest cost silver plan (SLCSP) in your zip code. Any excess subsidies will create a tax liability, and any shortfall of subsidies will create a refundable tax credit.
You may want to consider talking to the ACA folks about re-adjusting your APTC (advance premium tax credit, the monthly amount the government is sending to your insurance company) based on your new family size when she graduates. It sounds like you would get a lower APTC amount each month, but that would make the ACA part of your tax return closer to what it "should" be next spring and you'll be closer to the correct amount.
I'm not a fantastic expert, but I believe that on your 2019 tax return, you will list your household size as whatever it is (you and your wife, and maybe any younger dependent children if you have any). Your ACA calculations will be based on what your household size is at the end of the year, meaning it will exclude your daughter.
Then you will list the subsidies you received further down on the form. Those subsidies will be compared to what you should have received based on your FPL (Federal Poverty Level) and the cost of the second lowest cost silver plan (SLCSP) in your zip code. Any excess subsidies will create a tax liability, and any shortfall of subsidies will create a refundable tax credit.
You may want to consider talking to the ACA folks about re-adjusting your APTC (advance premium tax credit, the monthly amount the government is sending to your insurance company) based on your new family size when she graduates. It sounds like you would get a lower APTC amount each month, but that would make the ACA part of your tax return closer to what it "should" be next spring and you'll be closer to the correct amount.
VanWinkle
Thinks s/he gets paid by the post
https://www.healthcare.gov/keep-or-change-plan/
This link gives you some information, but it really comes down to contacting
the ACA marketplace and making the changes when the event occurs.
This link gives you some information, but it really comes down to contacting
the ACA marketplace and making the changes when the event occurs.
Agree with both of the above. Once she has gainful employment and insurance, contact Healthcare.gov and make the change. We are all assuming that she won’t be living at home with you. If she does then she’ll still be a dependent for ACA purposes.
wmc1000
Thinks s/he gets paid by the post
This works the same way when one person starts on medicare. You get the higher subsidy for the period of time the dependent is on your ACA and then when you notify Healthcare.gov of the change it is recalculated and adjusted for the period of time remaining in the year.
SecondCor521
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Emphasis added. I don't think that's accurate. She'd only be included in the OP's family size if she met the IRS definition for a dependent. See instructions for Form 8962 line 1.
If she is under 26 and they provide over half of her support and she doesn’t meet earnings requirements to file then why wouldn’t she be a dependent? There are qualifying relatives also that are dependents that help qualify for ACA. Maybe I’m just wrong
SecondCor521
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Well you're right that if she were a dependent child or a qualifying dependent then she would count toward household size.
I was assuming based on the OP's post and the current economy that the daughter would get a starting professional sort of job in early summer, and so the "provide over half her support" test would be failed.
Rereading the OP, I realize that s/he didn't specify college vs. high school, but even a high school grad getting a job in May probably would fail the support test.
