ACA

[Christian]

After looking over the client list I find most of the folks I serve have acceptable health insurance. However, one case in particular has me scratching my head. I have a retired couple who claim an adult daughter and her two minor children as dependents. The children are covered under a federal program but their mother has no coverage. She likewise has no filing requirement. Does this make her father and mother responsible for health insurance on her or does the fact she does not meet the filing requirement relieve her of the need for having it ? Any thoughts would be appreciated.

[Guest Taxed]

Do these people live in a state with expanded Medicaid?

[grmy2h]

From everything I have read, if the person is listed on your tax return - you are responsible or subject to the penalty.

[mrichman333]

Got this off the IRS site

2. Who is subject to the individual shared responsibility provision?

The provision applies to individuals of all ages, including children. The adult or married couple who can claim a child or another individual as a dependent for federal income tax purposes is responsible for making the payment if the dependent does not have coverage or an exemption.

http://www.irs.gov/uac/Questions-and-Answers-on-the-Individual-Shared-Responsibility-Provision

. What are the statutory exemptions from the requirement to obtain minimum essential coverage

No filing requirement. Your income is below the minimum threshold for filing a tax return. The requirement to file a federal tax return depends on your filing status, age and types and amounts of income. To find out if you are required to file a federal tax return, use the IRS Interactive Tax Assistant (ITA).

[Christian]

Virginia has a federal exchange so no availability of medicaid. In looking over the replies I would posit that since the adult daughter has no filing requirement the parents need pay no penalty for her not having health coverage. On the other hand they may elect to cover her as she would receive a credit equal to 80% of her premium.