Health Care

Health Care

How do health care reform and taxes connect? The Affordable Care Act is single largest change to the tax code in two decades. Find help navigating the complexities of the new health care legislation, Medicare, Medicaid and other medical deductions.

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Pioneer
Posts: 1
Registered: ‎04-08-2018

Claiming parent with 1095a, ssi income only

I want to claim my elderly mother on my return. She had Obama Care jan-june. She moved in with me in middle of June and was on Medicare. I have put her 1095a on my return; however, it keeps trying to charge me $600 overpayment of PTC. Is there a way around this? My mom's health deteriorated and that's why she moved with me. She had obamacare first week of June and then was able to get on Medicare. Can she file Her own return and mark that she can be claimed as a dependent and put 1095 a on her own return? She wouldn't owe or get anything it was just $0. any help would be appreciated.
Council Member
Posts: 516
Registered: ‎04-06-2016

Re: Claiming parent with 1095a, ssi income only

By claiming your mother as a dependent you're saying you're providing over half of her support which will include taking responsibility for helping pay for her health insurance. That being the case your income is considered when determining the premium tax credits she's eligible to receive. It sounds like with the increase in income being used to calculate the credits, she received more in APTC (advance premium tax credit) than she was eligible for and you're having to pay that amount back. 

 

So the answer to the question you asked: "Can she file Her own return and mark that she can be claimed as a dependent and put 1095 a on her own return? " is No.  The dependency exemption and the 1095-A form are a package deal.

 

You'll need to decide if the benefit you receive from claiming her as your dependent is more than the $600 APTC that you're going to have to repay.  The alternative would be to have her file and claim her own dependency exemption so she won't have to pay back the APTC, but you'll lose the benefit of her exemption.


Karen