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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11136
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I have joint custody of my two sons. My ex claims them as dependents

This answer was rated:

I have joint custody of my two sons. My ex claims them as dependents for tax purposes but I pay the insurance. Can I claim them as family members for the affordable care act?

Lane :

Hi,

Customer:

Hello

Lane :

Health plans under the reform act, as we know it today, have to offer coverage to dependents until the young adult turns 26, BUT as of right now all we know is the following:

Lane :

Dependent means, son, daughter, stepson or stepdaughter legally adopted or foster child

Lane :

now ...

Lane :

the problem lies in how they define dependent for HSA's... Right now the IRS has not changed the definition of dependent for HSAs

Lane :

See this, it has all the details

Lane :

for regular coverage (non HSA) the dependent does not have to live with a parent

Lane :

does NOT have to be a dependent on the tax return

Lane :

Don't have to be full-=time student

Lane :

So, as far as we know now unless you are talking about a Health Savings account, the for you is yes

Customer:

Both are under the age of 16 and my biological children. So, I CAN claim them when requesting insurance from the ACA marketplace even though my ex claims them as dependents on her tax return?

Lane :

Yes, they do not have to be a dependent on your tax return

Customer:

Thanks! Can you give me the IRS Reference for this info?

Lane :

So, for purposes of the ACA marketplace they can be covered dependents

Lane :

DIi you see the link I provided? As this has not yet become law I can try to find something but it is not yet in the code

Customer:

Yes, Thank you for your help!

Lane and other Tax Specialists are ready to help you

Thanks for the rating!

Lane
Customer: replied 3 years ago.

One last follow-up on this.... I want to verify that my claiming the boys for insurance purposes will not effect my ex wife's ability to receive tax credit for them as dependents on her tax return?


Thank you again!


Jon


For regular health COVERAGE under the Affordable Health Act the tax dependency and the definition of a dependent for health coverage are completely de-linked (with the exception of HSA's (Health Savings Accounts) above.

See this from the Office of Personnel Management: http://www.opm.gov/healthcare-insurance/special-initiatives/health-care-reform/

"My child is not a dependent on my tax return. Is my child covered under my FEHB Self and Family enrollment?

Yes. There is no requirement that your child be a dependent for income tax purposes, nor does your child have to be financially dependent upon you, to be covered under your Self and Family enrollment."

Your boys could be under EITHER of your heath plans. Eligibility is not related to dependency or taking a tax credit (which IS a dependency, among other things,issue).

The tests for qualifying child for dependency and tax credit remain the same. It will not be their coverage under and ACA plan that determines her ability to take the credit.

Hope this helps

Lane
Customer: replied 3 years ago.

I genuinely appreciate your time! Thanks!

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You're VERY welcome.

Your positive rating was thanks enough!

If you'd like to work with ME again just say "For Lane only," at the beginning of your next question.

Thanks again,
Lane