I applied last year on healthcare.gov for insurance and listed my adult son as a dependent. They said we would be eligible for Medicaid and they sent our application to the state. I got approved for Medicaid and was covered all year, however apparently my son was supposed to apply to the state separately since he is an adult.
He got approved for Medicaid in September.
Will I owe a penalty. Our income is under 26,000 for 3 people.
Should I not claim him as a dependent on our taxes or do I have to since I put him as one when I filled out the application on healthcare.gov.
He had no income so on his own he would not file taxes and would not owe a penalty.
If you thought you had Medicaid, but didn't, you can most likely apply for an exemption for the months in question.
There are a lot of hardship exemptions, and many apply to Medicaid. Not sure the certain exemption to claim. If your son files separately then he won't owe the fee (as he has no income) and will be able to stay on Medicaid. The only thing to watch out for is how this will effect your tax returns (your income is high enough where the extra dependent could be the key to Medicaid eligibility).
If you can apply for the correct exemption, then you should still be able to claim him and file the 8965 exemptions form.
This is a tricky one. Please feel free to follow up with your experience to help others.