Who Get’s the Tax Credit, Divorced Parents? How Does 8332 Form Affect This?
I am divorced and have 6 children. I am the custodial parent of all 6 children, they all live in my home full time.
If I allow my ex to claim a deduction for some of the children by giving him a form 8332 ( which states that I am the custodial parent and only gives him the right to claim them for a dependency deduction, does not give him the ability to file as head of household or get earned income credit for them) how does this effect my insurance?
Can I still count all 6 children as part of my household since I am the custodial parent and he is not receiving the hoh status for them? They all have Medicaid and I’m not really concerned with them qualifying as I’m sure they will, but I am concerned that without all 6 of them listed on my tax return I will have trouble qualifying for insurance at the same price I am now.
Lynea Jones
My ex-husband provides insurance for our two children. However, we each claim one child on our taxes. For 2015 & 2016 I did not realize my ex had obtained Obamacare and was apparently getting the PTC. When I filed my taxes for 2015, the IRS sent me an audit and is saying I owe over $5000 in overdue taxes, penalties and interest. Why am I being penalized for his PTC?
Erin
Unfortunately, there is only one tax situation in which PTC and other dependent related credits can be split between parents. It is the right answer for some parents, and for others it just creates different challenges. Here is more information, but I suggest that you consider consulting an accountant to come up with the best tax arrangement you can for your family (because it is way more complex than it should be).
EL
What exactly constitutes “affordable” healthcare coverage for a dependent “offered” by employer sponsored plan? My work “offers” an insurance plan for dependents that you must pay 100% yourself. The rate is $460/ month. It doesn’t seem affordable to me. Can I get some sort of Marketplace insurance for him alone (without me on it)? In the past I could get an affordable coverage outside of work, but Obamacare destroyed these plans.