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: ‎04-18-2017

Health Care Question

When putting in information for the Health Care Program it ask for my daughters 1040ez information. Do I have to fill that part out her income is not apart of my household income. She used her income to pay for college. If I put that information in that field it makes my income over where I would be paying back to Healthcare.

 

Second I also added my other daughter who is also in college but for part of the year the other part she worked for the college and they provided health care. However did not inform Healthcare of this so I paid for the whole year for her. Do I have to also put her on as an additional person not my dependent?

 

 

Thank you in advance

Tax Pro
Posts: 5,727
Registered: ‎02-23-2016

Re: Health Care Question

Hi gaylagirl,

 

Welcome to the H&R Block community.

 

If you had marketplace insurance and you're claiming your daughter as a dependent then yes, you do have to include her income for purposes of the Form 8962.  This may or may not result in a repayment of some of your premium tax credit.

 

If your daughter was in college full time and paid less than 50% of her own support then you can and should claim her as your dependent child.  The earned income credit you'll be eligible for and the education credit that you will claim for your daughter will almost certainly outweigh any repayment of premium tax credit that you end up with.

 

If you do not claim your daughter but she is eligible to be claimed then she will still have to mark on her return that she can be claimed as the dependent of another taxpayer and she will not get a personal exemption or any tax credits, so again it is to your advantage and hers to claim her if she qualifies.

 

If you have any other questions I'll be glad to help.

 

Louis,

Senior Tax Advisor (Tampa, FL)