Child enrollment for Non-Custodial Parent, ObamaCare Rules?
Good Morning. My ex wife is enrolling our two children under her insurance. Both children live with me full time since 2010, I’m the custodial parent (court order is current) and claim them both on my yearly taxes.
Do our children have to live with her full time and does she have to be the custodial parent in order to enroll them? Both of our children have 100% medical and dental coverage under my insurance through Tricare Prime (U.S Coast Guard). My ex wife is not very honest and has a history of defrauding the government in regards to paying her taxes. I want to ensure that what she is trying to do is legal and will not cause me any issues either.
Only the custodial parent can claim cost assistance and will owe the fee if the children go without coverage under ObamaCare unless the non-custodial parent files Form 8332. This form is not required if the children have minimal essential coverage throughout the year and no one is attempting to claim Premium Tax Credits regardless of which parent provides the coverage.
Revocation of Release of Claim to Exemption for Child by Custodial Parent (form 8332) is for unmarried parents who do not live together, but who are together responsible for more than 50% of the dependents financially needs (see the IRS Pub 504 for all criteria) to share the dependents. The non-custodial parent would claim a dependency exemption on the year end taxes.
By signing the form 8332 the custodial parent waives their right to claim an exemption for the dependent, as well as, child tax credits. The parent claiming an exemption for the dependent is the only parent eligible for Premium Tax Credits, but this means being responsible for the Shared Responsibility fee as well for any months the child was not covered. In this situation the custodial parent would still be eligible to file Head of Household, and for other dependent related tax credits/deductions (like for child care), but not an exemption for the dependent, a child tax credit, or Premium Tax Credits.
In your case, you seem to be dealing with non-marketplace coverage. Tricare Prime is considered minimal essential coverage and she is not trying to claim the child for premium tax credits. You are responsible for the fee, but if they have coverage through her, then the children are considered covered for your tax obligations for the Individual Mandate.
You can certainly be on a slippery slope here, especially if co-parenting isn't on friendly terms. Because you are the custodial parent, you might want to have them get coverage through you. Since she isn't claiming the children she won't get any tax benefit for providing them coverage, but you might, and you will definitely be on the hook if for some reason the children lacked coverage at any point.
I am required by child support court order to provide insurance for my daughter. I am the non custodial parent and I do not claim her on my taxes. Can I add her on my application since I do not claim her as a dependent on my taxes.
As a rule of thumb, if you don’t claim a dependent you typically can’t add them to a family plan and you can’t get cost assistance. That being said, there are some workarounds for separation in the 8962 instructions which can be seen here: https://www.irs.gov/instructions/i8962/
My son lives with me. I am the court ordered custodial parent. The father, non custodial parent, is court ordered to get insurance and he chose to get Obamacare. Our son lives with me and I claim him as my dependent. Did the father commit fraud? I filed my taxes and answered “no” to the question regarding having a child on marketplace insurance because I had my son covered under my employer offered insurance. I am being asked by the IRS to file form 1095-A and I did not receive one. I did receive a 1095-C showing MY coverage for my son. How can this be fixed? As of now, the IRS is trying to make me pay the fee, and I never had the Health Insurance Marketplace account.
These situations are very confusing. Whoever files for the child is, in the eyes of the IRS, the one who can claim tax credits and would owe the fee. Divorce lawyers might have the other parent provide coverage. This makes life very confusing but is sometimes the right thing. Anything could have happened. You should ask if the father enrolled the child through the marketplace; that is a good starting point. It is really hard to say what exactly is happening because there is so much that could happen.
My wife and I are going through the exact same scenario. We have court ordered insurance on her son. Yet his father purchased Marketplace insurance on the boy, and now IRS is looking for us to reconcile the tax credit. We can’t even get a copy of 1095a from her ex who is not cooperating at all. Did it get resolved? I’d appreciate any feedback. Thanks.
I just found out the very hard way that allowing the non custodial parent apply and pay for our Childs healthcare is costing me thousands !!! My ex approached me over a year ago saying he wanted to provide insurance for our son (he has never paid me child support ) so I thought “this is great “.
Then this year when I filed my taxes , mine were rejected because he claimed him on his taxes ! He never said a word to me about it. Out of 12 years I allowed him to claim him 2 times , to be nice … But our son lives with me. He has every other weekends with dad.
So now I have to pay thousands more in tax because I also found out that I have to submit a 1095 form which I don’t have because his father pays the insurance.
This does not seem fair or right. Please tell me there is a way around this ?!
I was assessed the tax penalty for my child who is 18 and her father was court ordered to provide her insurance. And my adopted sister who I claim & raise, who has Medicaid. They both had insurance the entire year. Why did I have to pay a FEE?
Someone filed the papers incorrectly. Likely the 8965 form was not field correctly. Did someone else file your taxes or did you not file an 8965 with line 61 on your 1040?
You were correct. My tax preparer filed wrong, I filed an addendum to my taxes. Thank you.
My ex was supposed to pay for child support through the court order. I claim our child as a dependent. Why is it that if the non-custodial parent is responsible for providing health care coverage and did not for 2015, why should I be penalized?
I can’t explain every in and out of this, but in simple terms, whoever files owes the fee, and has access to the credit if they provide coverage to the child through the marketplace.
Hello I came to an agreement with the mother of my two children to provide child support without a cort order. She receives from me 800 a month which I have prove of. Her and my two children have medical coverage through Medicaid and I have mine through my employer. If i was to file a form 8332 to claim both of my kids, will they lose their Medicaid coverage?
Hello, as a non custodial parent is it true that I must be able to claim my daughter on my taxes in order to receive long term affordable healthcare plans? Is it possible at all to receive cost assistance for insurance as a non custodial parent?
Can my ex husband have medicaid for our daughter even though I am the custodial parent? Is this legal?
I received an email from child support recovery that I MUST pay for my child insurance, vision, and dental. The child lives with her mother. Can I claim her on my tax returns?
You can in essence “split dependency” as described above, but it requires the custodial parent to be willing to sign over their claim to certain exemptions and credits to you, but retaining the ability to claim the others. Unfortunately, its not a very flexible process and many parents aren’t in a position to get cooperation from the other parent.
Question??? I am the non-custodial parent’s spouse, and I have very good medical coverage. I even put my step-child on my plan because it is much better than the non-custodial parent’s plan. The non-custodial parent is supposed to provide the insurance, but instead I do. Is that a problem as long as the child is covered? The custodial parent says that I can’t cover their child that the non-custodial parent must do so. I feel the custodial parent is being petty and spiteful.
As long as the child has minimal essential coverage, it doesn’t matter who is supplying it. The only time it matters is if you are trying to get tax exemptions, deductions, or credits in order to provide that coverage for that child. For the most part, those kinds of deductions are only accessible to the person who claims the child as a dependent.
I had both of my children on an Obamacare plan. Ages 18 and 21, I’ve always claimed my 21 year old until this year. He filed his own taxes for 2016, but we didn’t know he would since he’s never made enough money to. I received the tax credit on the monthly premium, but still had to pay out of pocket monthly for both of them. How am I supposed to list or claim this on my 2016 taxes because it’s asking for all 3 of our income, and saying I’m going to owe money. I’m confused because I still had to pay out of pocket monthly.
i calimed mychildreen but thire mother purchased Obama care and put them on it . Do i have to file form 8962
I filed my taxes with turbo tax and I received a 1095-A and B form. I have three children one with another partner I did not claim this child. Yet for the tax credits she was on my 1095-A form. Considering I did not claim this child I did not list her as a dependent, yet I did claim the tax credits. This has caused an issue with my Ex’s return and Mine.. What will correct this issue?
The only option is for you to split dependency of that child for tax purposes. It requires the custodial parent to sign form 8332 (discussed in the answer above) and allow you to claim the child’s dependency exemption (deduction), the child tax credits, and the Premium Tax Credits. The custodial parent would still be eligible to file Head of Household, and for other dependent related tax credits/deductions (like for child care), but not an exemption for the dependent, a child tax credit, or Premium Tax Credits.
This is a common frustration for custodial and non-custodial parenting arrangement, but, as is the case for most tax credits/deductions related to children, only the parent who claims the child’s dependent exemption can claim Premium Tax Credits on their year end taxes.
My mother claimed my daughter because she’s been living with her for the past year. I covered myself and my daughter with Obamacare. When my mother filed her taxes the IRS wanted her to send in a complete Form 8962 and Form 1095-A. Can she submit my 1095-! that show my daughters coverage?
Generally the person who is filing taxes for the children needs to be the one providing them coverage. The way around it is the form noted on the page, dependency exemption healthcare tax credits 8332. I would call healthcare.gov for direction. It is a complex situation.
My ex in another state who only has visitation rights applied and received marketplace insurance for our child that does even reside in that state. We provide insurance through my current spouses employment. This messed up our taxes every year. We get questioned and asked for a 1095a. How can I stop my ex from doing this? I claim the child every year and have not signed an agreement to do this. Who should I report this to?
It isn’t clear to me what the proper way to deal with this is. I’m not sure if its a family lawyer, the marketplace, or IRS. Divorce, separation, and the ACA tax credits can result in some really complicated issues. This is a good example of that. If anyone has a clear answer, I’m sure others would appreciate knowing it.
Per my divorce decree, I am to claim one of my daughters as a dependent. I am also responsible to provide insurance for both of my girls. They have been on the same insurance for their entire life. But my ex wife (without my knowledge) placed the girls under her Obamacare policy and received the tax credits. Once I filed my return, the IRS has written me letters stating that I must fill out the form for the Obama care credits. I have spoken to them several times and tried to explain that I did not receive the tax credits. I also sent verification that the girls had insurance thru my employer insurance. But the IRS is still saying that since I had tried to claim my daughter as a dependent and I wasn’t eligible for Obama care tax credit that I had to repay the tax credit. How do I resolve this situation. It doesn’t seem fair that another person can put somebody on their obama care policy and receive the tax credit even though that person has insurance thru their father. Then the father has to repay the tax credits that he DID not receive. After talking to the IRS, they know that I did not receive the tax credit. So why isn’t this a simple fix? Should I amend my return? Should I sit down with my local IRS agent and try to figure it out? Because talking to them on the phone has not helped at all.
The exact same thing is happening to me. My ex refuses to provide me with our daughters 1095-A form. I was informed by the IRS I would have to pay $5000 or amend my tax return, not claim our daughter and lose $1000. If I don’t claim my daughter will I be able to claim her on my 2017 taxes without this problem? It’s so unfair!
My situation is this. My ex husband pays for insurance under the ACA for both of our children. However, I claim one child on my tax return (he claims the other). Last year he was able to get the premium subsidy for the insurance for both girls just as long as I filed the appropriate tax form noting that I did not get any premium tax credits for my child (which I did not). He went to go and renew the plan and it is now saying that he can’t include this one daughter because she is not considered a dependent of his for purposes of tax dependency. Did something change? How do we circumvent this approach because it is much cheaper for him to provide coverage under the ACA than it is for me to get coverage for this one child through my work?
There have been changes under Trump, but I was not aware of any changes to the sections of forms 8962 and 8332 that would be used for this.
You may want to consult a family lawyer or an accountant on this one. It is a complex situation. You can also try contacting healthcare.gov again and talking to someone to get a better answer.