both IRS and coveredCal can't answer this

[Irishgirlyc58]

Mine increases more because it flips me into head of household instead of single.

 

[Irishgirlyc58]

ah yes thanks for catching this. I see there is still the $500 credit. online calculators may not be smart enough to include this.

so we have about $600 tax reduction for adding a dependent. nothing much compared to cost of insurance.

I have a question. If the over 26 child qualifies as my dependent and gets a HDHP with an HSA through ACA based on my income, is that HSA contribution tax deductible?

 

[SecondCor521]

I have a question. If the over 26 child qualifies as my dependent and gets a HDHP with an HSA through ACA based on my income, is that HSA contribution tax deductible?

No. Them being a dependent disqualifies them as an eligible individual:

"To be eligible to have contributions made to your HSA, you must be covered under a high deductible health plan (HDHP) and have no other health coverage except certain disregarded coverage. If you are an eligible individual, anyone can contribute to your HSA. However, you cannot be enrolled in Medicare or be another person's dependent."

https://www.irs.gov/instructions/i8889#idm139631566675968

 

[Irishgirlyc58]

No. Them being a dependent disqualifies them as an eligible individual:

"To be eligible to have contributions made to your HSA, you must be covered under a high deductible health plan (HDHP) and have no other health coverage except certain disregarded coverage. If you are an eligible individual, anyone can contribute to your HSA. However, you cannot be enrolled in Medicare or be another person's dependent."

https://www.irs.gov/instructions/i8889#idm139631566675968

Thank you!

 

[perinova]

My conclusion from this research is: When dependent is above 26:

* If either the dependent or the child has income and is insured by employer, the child can't be claimed as dependent and needs to apply as a separate household for ACA.

* In the event the parents are in the marketplace due to early retirement and the child has no income, the family applies for ACA and child qualifies as a dependent (~$600 lower tax for us).

I did notice on CoveredCal that insuring that the dependent is covered for free (~same quote for 2 or 3 people). I hope the website's estimates are correct.

It would make sense to make those decisions before the ACA enrollment period end.

 

[gayl]

It looks like he'll be on Medi-Cal but (if I remember correctly) he can then choose to have Medi-Cal pay for an HMO (Kaiser or a county plan)

 

[rodi]

We went through this with my 20 year old. He works part time and goes to school part time. Last year he lived with us. But he worked mostly full time once he stopped full time school. He applied as a non-dependent. He was on our ACA plan and we had to go through serious math to break up the premium tax credits.

IRS sent a letter questioning our 2020 tax filings WRT the premium tax credits - but I sent a letter of explanation, along with the math and referenced his SS# so they could check his return as well. Haven't heard anything in 5 months, so I think we may be ok.

This year, he moved to another city in CA (mid year) and signed up for his own health insurance. Biggest hassle was that as a 20 year old he couldn't verify his identity through experian (which is what coveredCA uses. ) We dropped him from our plan once he successfully enrolled in his own coveredCA plan.

If he runs into the issue on CoveredCA with identity verification (if he doesn't have credit cards or much of a credit history) you can get a covered california certified agent upload copies of his drivers license, SS card, and/or passport to their site so you can complete the enrollment.

 

[imnontrad]

He is a household of 1 "renting" (either by actual cash or work around the house) a living space from you.

 

[LimaPop]

Obamacare is messed up if you have to play these games to make it affordable. What poorly constructed legislation.