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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
Experience:  10 years experience
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I am a divorced father claiming two dependants this year.

Customer Question

I am a divorced father claiming two dependants this year. (Head of household) I am on an individual affordable care act health insurance plan, with some subsidy. My kids are on my ex-wive's health insurance, through her work. They are not listed on my 1095-A form. It looks like Tax Act Online assumes that they are on the 1095-A. Will this be a problem? If so, what can I do?
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.

Hi. My name is ***** ***** I will be happy to help you.

1095A will not be filed with your return. IRS will receive 1095A from the insurance company. You will file form 8962 to reconcile the credit you received. As long as everybody in the family had a qualifying insurance and Tax Act will not calculate any penalty, you will be fine.

Customer: replied 1 year ago.
Okay, but aren't my kids social security numbers going to appear on my ex's 1095-C that her insurance company sends to the IRS? Won't that send up red flags? Plus, Tax Act has me paying back $600 ( the max allowed for a family plan), but as an individual I would only owe $300 back. I see this as worth $300 to me, and a potential penalty for not reporting it correctly. Thoughts? Thank you.
Expert:  emc011075 replied 1 year ago.

Yes, your children's social security number will appear on your ex's 1095C but it really doesn't matter because 1095C is only for informational purposes. 1095A, however is important because of the credit reconciliation. You have to make sure that you "communicate" to the tax act that the children had full year coverage with a separate insurance company. It looks like you are being penalized for something. You should owe less or even get a small refund, NOT owe more when you switch to Head of household. Can you tell me how the return change when you check that everybody had a full year coverage and bypass the 1095A for now?