Young Adults Under 26 in HS

[ameneses54]

I find it strange that H.Sherpa does not allow the addition of a young adult under 26 who is not a dependent to their policy--you can't even quote them. As adults the only option is the primary and the spouse.
For a fact I know the above can be done within HCgov, but the way it handles the tax premium subsidy still baffles me. Basically what happens is that if you add a young non dependent adult to your ACA application, all tax subsidies are dropped, including that of the primary. The former is non conforming with the fact that young adults under 26 are supposed to be allowed in there parents ACA plan.
Any insight would be appreciated.

 

[Sherota1]

They can be on the same plan but not on the same application. The wording that people under 26 can be on their parents policy is misleading. To get credits you must do two applications. Technically they cannot be on their parents plan no still have everyone receive a subsidy.

Can a 26 year old stay on their parents plan

You can run the tool also for an under 26er who is a dependent but in my experience it's almost always better to do separate applications only ousting the parents for in one purposes if needed. If they make enough to qualify on their own have the do that and file their own taxes as a family of 1.

 

[ameneses54]

They can be on the same plan but not on the same application. The wording that people under 26 can be on their parents policy is misleading. To get credits you must do two applications. Technically they cannot be on their parents plan no still have everyone receive a subsidy.

Can a 26 year old stay on their parents plan

You can run the tool also for an under 26er who is a dependent but in my experience it's almost always better to do separate applications only ousting the parents for in one purposes if needed. If they make enough to qualify on their own have the do that and file their own taxes as a family of 1.

Thanks for the reply. The explanation on the link really makes no sense at all as it says if the parents want a subsidy the young adult would have to file a separate app. In other words, you can't include them on the parents plan without forfeiting the premium credit. Double nonsense, as the young adult in many cases does not have enough income to do an app with a subsidy on there own.
What really encourages me is the liberal policy of the IRS to include a young adult as a dependent and as such your not forfeiting your premium tax credit.
https://www.irs.gov/uac/Who-Can-I-Claim-as-a-Dependent%3F

Very confusing!