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.

Reply
Highlighted
Pioneer
Posts: 1
Registered: ‎04-14-2017

unemployed dependent has to pay isrp?

I am filing my boyfriend's taxes and he can claim me as a dependent since I did not work last year.  I did not have healthcare at all since it was not affordable with no income. The confusing part is when I am asked about healthcare it states that I will have to pay the individual shared responsibility payment.  After research I know since I am not filing my taxes that I would not have to pay the fee, but since I am a dependent I have to under his income?  Wondering if I should remove myself as a dependent on his taxes?  (I do not have an exemption from healthcare.gov)  

Thanks for any help

Tax Pro
Posts: 5,199
Registered: ‎02-23-2016

Re: unemployed dependent has to pay isrp?

Hi nattysmile,

 

Welcome to the H&R Block community.

 

You're kind of on the right track.  The way the health insurance penalty works is that if your boyfriend claims you as a dependent then he is responsible for you having health insurance and will be assessed a penalty if you did not have insurance.  He may be able to claim an exemption from the penalty based on income, and the income limits for the exemption will be higher since his tax family includes two people instead of just himself.  If you can tell me what his income is I'll know whether or not he will qualify for an income-based exemption.

 

Also, note that in order to qualify as your boyfriend's dependent you must have lived with your boyfriend for the entire year last year, and he must have provided more than 50% of your support.  This will qualify you as his qualifying relative based on residence rather than on being related to him (if you were being claimed by someone to whom you were related they would not have to live with you in order to claim you).

 

My advice is that if your boyfriend does not qualify for an exemption from the health insurance penalty then he should not claim you because the only tax benefit he will get from claiming you is a $4,050 exemption from taxable income that does not reduce tax dollar for dollar, so you will save more by eliminating the $695+ penalty.

 

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

 

Louis,

Senior Tax Advisor (Tampa, FL)