is there any changes when consider household income from last year? I enrolled a family of 4, the mother estimates $21k and one of the kid make $6000. It doesn't count her daughter income but just her. So they didn't qualify for the tax credit but medicaid this year. Everything is the same from last year. Last year they qualify for the tax credit. Anyone have this issue? I redo the application twice and get the same result
Is Dependent's Income Count ?
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Did the SLCSP change?
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TX is not a state that expand medicaid. If her daughter's income count toward household income like last year then their household income would be $27k. $27k for family of 4 should qualify for tax credit. I just dont' understand why they not consider dependent's income on the application. I have a few happen this way
Often a tax dependent's income is not counted in MAGI for the APTC if the tax dependent's income is so low that s/he does not need to file their own tax return. That level is around $6,300 in earned income in 2015 and $1,050 in unearned income for 2015. I don't know what it is for 2016, but it will be close.
So, for instance, Johnny can have a part-time job, and earn under $6,300. The income is included on the parent's tax return if Johnny is a dependent on their tax return. The FFM does not count Johnny's income, though, for MAGI purposes.
But let's say that Johnny earns $10,000 (over the limit), then Johnny has to file his own tax return (even though he can be claimed as a dependent on his parent's tax return if they provided for more than half of his support for more than half of the tax year). The $10,000 must be included in the household MAGI.
A quirk - If Johnny has let's say only $3,000 in earned income but went over the unearned income limit and had, let's say $1200 in unearned income, then Johnny must file a tax return and the entire $4,200 is included in MAGI.
Another quirk - Sometimes a child must file a tax return for another reason, like if money was withheld and they want a refund, or for informational purposes only. If it doesn't go over the limits, then it's not included in the parent's MAGI, even though the child actually filed their own tax return.
So, for instance, Johnny can have a part-time job, and earn under $6,300. The income is included on the parent's tax return if Johnny is a dependent on their tax return. The FFM does not count Johnny's income, though, for MAGI purposes.
But let's say that Johnny earns $10,000 (over the limit), then Johnny has to file his own tax return (even though he can be claimed as a dependent on his parent's tax return if they provided for more than half of his support for more than half of the tax year). The $10,000 must be included in the household MAGI.
A quirk - If Johnny has let's say only $3,000 in earned income but went over the unearned income limit and had, let's say $1200 in unearned income, then Johnny must file a tax return and the entire $4,200 is included in MAGI.
Another quirk - Sometimes a child must file a tax return for another reason, like if money was withheld and they want a refund, or for informational purposes only. If it doesn't go over the limits, then it's not included in the parent's MAGI, even though the child actually filed their own tax return.
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Had the same baffling problem recently: family of 2 in Florida, mother makes 12K and dependent who is 18 receives 8K through SS disability and as such both their incomes would surpass the threshold for the tax credit. Processed twice, and the eligibility did not offer the mother any subsidy. I still don't understand why this is happening.
