Modifying Household Size

kstein

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Is it kosher to not take the child deduction on 2 kids who don't live at home, are in college, and have substantial income, leaving the single parent to qualify for a subsidy? Anyone come across a situation like this?

Would they still be considered a household of 3?
 
If the children's employment provides for more than half of their support, they should not be claimed as a dependent. See IRS Publication 501 for more details.

For the ACA, they can remain on the parent's plan until age 26, making the household size 3 if they're on the plan but the income from all their tax returns is counted.
 
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I see, thanks for the feedback, probably one of those cases to offer off exchange or walk away. Stinks bc the guy is in a tough situation, wife died early, left behind stock for kids which generates their income and the dad is really sick and uninsured.
 
Depends on what "substantial" income means. The kid would likely qualify for a subsidy on their own if it's that substantial.
 
Not a ton, maybe 60k per kid. I think the issue is that the kids don't associate w the dad a ton or the dad is estranged from wife's family. Not too sure
 
Not a ton, maybe 60k per kid. I think the issue is that the kids don't associate w the dad a ton or the dad is estranged from wife's family. Not too sure

60K per year per Kid? No one is going to qualify for a subsidy in that case. Off exchange. As far as the dad still claiming the kids, I think that would be a better question for an accountant.
 

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