How Does Being A Caregiver Affect ACA?
I am currently living with my elderly parents and am their caregiver.
I get SSI and Medicaid, and the tax preparer claims that I have to put my social security number and name on their tax form.
Since my income is too low to file, I wondered why I would have to be included on my parents tax form.
The IRS has very specific, sometimes confusing, rules for caregivers. Under ObamaCare there are extra deductions to claim as a caregiver that can affect MAGI (Modified Adjusted Gross Income). For the most part these are deductions. If you file as a head-of-household and claim your parents as dependents this can affect your access to cost assistance (for better or worse depending upon their income). In order to "have" to file as a head-of-household you'll need to meet certain criteria, if you still file as single you'll need to file the correct forms but it won't affect access to cost assistance or your filing status negativity.