Christian Posted January 31, 2015 Report Share Posted January 31, 2015 Luckily most of my folks are covered by health insurance. I have a couple with two dependents. The daughter was 17 in 2014 and the son (a student) was 19 in 2014. The daughter is covered under Medicaid and the son was uninsured all of last year. The couple has obtained a hardship exemption through the local federal exchange. The son filed a tax return for 2013 listing some $4,000 he made in a part time job and, of course, did not claim himself. He likewise obtained a hardship exemption through the federal exchange which will be shown on the return he needs to file for 2014. He received a 1099- Misc form and pays the required social security himself. In filing the couple's return I can show the two exemptions provided by the exchange and can show the daughter as covered for the full year. In reading the regs I don't fully understand why since the parents have been exempted it is necessary to list their dependents on the Form 8965. Assuming I do would I use the exemption granted to the son ? All of a sudden retirement looks more attractive. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted January 31, 2015 Report Share Posted January 31, 2015 If a child is a dependent on the parent's return, his return should be totally silent about the ACA. No checkbox, no form 8965. It is the responsibility of the parent to deal with it on their return. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted January 31, 2015 Report Share Posted January 31, 2015 Christian, if the son is claimed as a dependent on the parent's return for 2014, Jack is correct that the son's return should be completely 'silent' as to the ACA. On the son's return, do not answer any questions or include any forms related to the ACA. It is up to the parents to report the coverage, or lack of coverage. The parents should leave the box on line 61 blank and should include form 8965 that will show their own exemption and also the exemption received by the son. Quote Link to comment Share on other sites More sharing options...
Christian Posted January 31, 2015 Author Report Share Posted January 31, 2015 Thanks guys. It was unclear to me whether the parent's having both been granted an exemption number would need to report their dependents on the Form 8965. After all they have been granted an exemption why would it not apply to their dependents since the parents are responsible for the kid's health coverage? I see however that I will need to show the daughter as covered for the whole year and report the son with his exchanged generated number on the parents Form 8965. Oops Guru is a gal ! I apologizes . Quote Link to comment Share on other sites More sharing options...
jklcpa Posted February 2, 2015 Report Share Posted February 2, 2015 Oops Guru is a gal ! I apologizes . The mustache throws people off every time. Quote Link to comment Share on other sites More sharing options...
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