Case Study: Still Married - Filing Seperatly, Different Address and Son Lives with Estranged Wife

[HelpingPeople]

I have a case as follows:

- Michigan Residents for all Mr., Mrs. and Son
- Ages: early 50s for parents and son is 16.
- Not divorced but estranged couple.
- They live separately and son lives with Mom.
- She is on Medicare / Medicaid... Dual Eligible. (I will be signing her up for a Dual SNPS plan).
- Son is to be covered by Dad's health insurance.
- Dad will file separately.
- Mom does not file taxes nor does the son.
- Both Mom & Son are getting Social Security Benefits.
- Mom gets around $15k from SS.
- Son gets around $7.2k per year.
- Dad's income is being reduced to around $20k/yr.
-They live about 2 miles apart from each other.

Will Dad be eligible for a tax credit?
Will dad be able to apply tax credit (if eligible) to son's health insurance.
Will mom's social security benefit be counted in household income even though she doesn't live with Dad?
Will son's social security benefit be counted in household income even though he doesn't live with Dad?

 

[Yagents]

No joint filing, no subsidies

 

[taterpeeler]

No joint filing, no subsidies

XO concures............

 

[Yagents]

XO? Hugs and kisses?

 

[goillini52]

XO? Hugs and kisses?

Hahaha....Strange! I just learned what that meant the other day...I'm not up on text speak.

 

[Ann H]

There are several reasons there will be no subsidy, (Medicare eligibility, Medicaid eligibility, no tax returns being filed, not filing married joint). The Dad doesn't even have a chance of filing Head of Household with qualifying child because the child lives with the Mom. I sincerely doubt the son is a dependent on the Dad's tax return either. So, only the Dad might qualify for a subsidy. This calls for an accountant to decide what income is included in his household income. And the Accountant might be able to get a subsidy for the child, separately, but most likely he would go to Medicaid.

No, the Dad cannot apply his subsidy to the premium for a child that is not eligible for a subsidy. But the Dad can still insure the child (at full price).

 

[HelpingPeople]

Forgot to mention that the Dad will NOT be claiming the son as a dependent.

 

[Ann H]

So, it sounds like nobody would get a subsidy. I had said earlier the Dad might, but since he's married and not filing joint, and doesn't have a dependent child either, then I don't see any way. However, you still might want to have him talk to his accountant. And you might want to see if the son would get Medicaid (if that is what they want).

 

[taterpeeler]

XO is a military term....

Military[edit]

In the units of some military forces, typically those that are naval in nature, the executive officer (XO) is the second-in-command, reporting to the commanding officer (CO).

 

[Ann H]

XO is a military term....

Military[edit]

In the units of some military forces, typically those that are naval in nature, the executive officer (XO) is the second-in-command, reporting to the commanding officer (CO).

Nice to see you posting again, XO.
Sincerely,

Your CO