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03-28-2017 03:55 PM
Hello All. I have a 1095-A for a family of 4. The 24 year old child (not a dependent) started a new job with health benefits in September 2016 but I failed to inform the marketplace so he is listed on the 1095-A for all 12 months. So, should the 24 year old be treated as a separate tax family for the last 4 months of 2016? I assume there will be so kind of penalty for not alerting the marketplace. Who will pay the penalty? I'm also not sure if the need to "allocate" comes into play in this situation. Finally, I think I was able to recalculate the 4 months of SLCSP using the Market place website tool.
Thanks in advance for your assistance.
03-28-2017 05:20 PM
Welcome to the H&R Block community.
So unless you can claim your son on your tax return as a qualifying relative he is now an independent taxpayer. There is no penalty for him remaining on the marketplace insurance. However, he may be required to repay a small amount of his premium tax credit. The 1095-A is going to have to be allocated between two taxpayers who are not in the same tax family (your son is own tax family now) so he will need a copy of the 1095-A in order to complete his return.
I am an expert in this area of tax and I can help you with the allocation if you would like, but I will need a complete line-by-line description of your 1095-A, your total income, and your son's total income. You can click on my name and send it to me through a private message if you would like rather than post your information here where everyone can see it.
The other option is for you and your son to visit an H&R Block office together and meet with an experienced tax professional who can sit down and go over everything with both of you in person. This can be very beneficial in your type of situation.
If you have any other questions I'll be glad to help.
Senior Tax Advisor (Tampa, FL)