Thursday, February 16, 2012

Health insurance and claiming the child on your tax return.?

My ex husband said that the requirement for our child to be covered by his company's health insurance policy is that he must claim the child (age 12) on his tax return. Is this legal and how does it work? I need to amend his/our return if this is correct. It is in our divorce agreement that we get to claim the child every other year so this will be a big hit for me if this is the case as I make a lot less money and I have higher withholdings. As of now we both filed head of household for our tax return for 2010.Health insurance and claiming the child on your tax return.?He's either lying or is grossly misinformed. The healthcare legislation signed into law 2 years ago guarantees that your child can be covered on your policy up through age 26, without ANY restrictions. The old requirement of many insurance companies that the child be claimed as a dependent are barred by law now, and every insurance company knows it. The child can even be married and have children of their own and can still be covered.



Tell him to get written proof of his claim from the insurance company. He can't, because no insurance company is going to break the law and then confirm it in writing.



If the child lives with you, he can NOT file as HoH unless he has another child or qualifying person living in his home. Even if you surrender the exemption, you still retain HoH filing status, EIC, and the Child Care Credit. He only gets the exemption and the Child Tax Credit.Health insurance and claiming the child on your tax return.?
Your husband is wrong.



Due to recent tax changes, he is allowed to list the child as his dependent on his insurance as long as EITHER one of you can claim the child on the 1040 for that year. As long as that is true, the cost of the insurance is legal and not included in income.



As far as taxes go, ONLY ONE OF YOU is the custodial parent. ONLY ONE OF YOU can claim HOH for this ONE child. The non-custodial parent can only claim the child (as per the divorce decree) if he/she has a SIGNED form 8332 attached to their tax return. This gives them the right to the exemption and child tax credit ONLY.



If you are the custodial parent and this is your "year" you win. Don't sign the 8332 and claim the child as usual for everything. When the IRS asks for more details, you will need to show that the child lived at your house for 183+ nights during the year. Since the non-custodial parent can't show that, they lose. If he stupidly claims HOH and EIC for the child, he can be in a world of hurt.Health insurance and claiming the child on your tax return.?It is probably not correct. As you may have heard, the law was recently changed to allow parents to keep their children on the parent's health insurance until the age of 26, even though they (usually) cannot be claimed that long on their taxes. With a few exceptions, employers are no longer allowed to required children be claimed on taxes as a condition of covering them on health insurance. It is remotely possible that his employer is one of the exceptions, but you should confirm this with the employer and not take his word for it.Health insurance and claiming the child on your tax return.?
not according to the Obama health bill

it might be that the state the husband is in has not conformed to the Obama bill

but claiming on one's return was one of the major points of the bill for children up to age 26Health insurance and claiming the child on your tax return.?They can require it.
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