Parent filled out ACA application wrong-Am I handling it correctly?

[NECPA in NEBRASKA]

I'm pretty sure that the mother did not fill out the marketplace application for her 49 year old daughter correctly. She used the daughter's income of $549 and did not include hers. The daughter is disabled, but lost her SSI in 2016. She received a marketplace exemption for low income and because she does not qualify for Medicaid or CHIP. The mother works and her income is 734%.  She also has employee health insurance for herself. I think that she needs to not claim her daughter for 2017 and 2018, since she did the same thing for 2018. Apparently she is unable to get health insurance for her through the private market due to whatever issues her daughter has. 

I just don't think that putting the exemption code will fly on the Mom's return. Please correct me if I am overthinking this, but I don't think that she can claim her on her return, but not show her as a dependent on the marketplace. 

Thanks to anyone that feels like confirming or denying my thoughts. I don't know why people don't ask before they do this stuff.

 

[Pacun]

I thought the exemption was to avoid paying the penalty for not having health insurance. Did she receive advanced payments?

[jklcpa]

21 hours ago, NECPA in NEBRASKA said:

I'm pretty sure that the mother did not fill out the marketplace application for her 49 year old daughter correctly. She used the daughter's income of $549 and did not include hers. The daughter is disabled, but lost her SSI in 2016. She received a marketplace exemption for low income and because she does not qualify for Medicaid or CHIP. The mother works and her income is 734%.  She also has employee health insurance for herself. I think that she needs to not claim her daughter for 2017 and 2018, since she did the same thing for 2018. Apparently she is unable to get health insurance for her through the private market due to whatever issues her daughter has. 

I just don't think that putting the exemption code will fly on the Mom's return. Please correct me if I am overthinking this, but I don't think that she can claim her on her return, but not show her as a dependent on the marketplace. 

Thanks to anyone that feels like confirming or denying my thoughts. I don't know why people don't ask before they do this stuff.

 

 

Check the instructions for form 8965 where it defines the members of a tax household to include anyone the taxpayer claims as a dependent AND anyone that CAN be claimed as a dependent but isn't.  I think mom will pay a penalty for daughter not having coverage.

If that is the case, mom may as well claim the dependent exemption to minimize the damage. 

 

[NECPA in NEBRASKA]

Thanks! Judy, I was only thinking about the fact that the daughter already received an exemption from the marketplace. Since the information given to the marketplace for 2017 and 2018 was totally incorrect, I could not reconcile in my head which way the mother should file. When I asked her why she applied for it that way, she said that she didn't think her income was any of their business. 

I hate this ACA crap. This was never an issue when the daughter had SSI and Medicaid. She is back in court again trying to get it back. 

I will claim the daugher on Mom's return and she will have to deal with the marketplace if they come back and ask why she applied with 0 income.  I know that they were relying on her court case being over in 2017, but it has been dragging on for months.

3 hours ago, Pacun said:

I thought the exemption was to avoid paying the penalty for not having health insurance. Did she receive advanced payments?

Pacun,

She didn't receive any insurance from the marketplace or anywhere else. Thanks!