So I am currently working on some new products that will be offered by my company on the healthcare exchange and it sort of got me to thinking about something with this mandate/tax penalty. I started doing some reading but wondered if anyone else had even thought of this. From what I have read the person claiming the tax dependent exemption is ultimately responsible for healthcare coverage. In our case that means BM for my SKs and that also means Me for DD. I carry SKs on my coverage because DH, BM and SF have none available (yet we are also still paying BM for her old coverage-issue still not resolved). DD is only not carried on mine now because her SM's plan is way better than mine.
I have read somethings that show this could turn ugly for some blended families. In our state the NCP is required to carry insurance yet most are not allowed to claim dependent exemptions. Some articles I have read have pointed to parents that do not have a good relationship not furnishing the parent that claims the exemption with the necessary documents to prove coverage to avoid the penalty.
I think, in our situation, things will be okay. We are all amicable. I am more worried that for some reason SM's insurance won't count towards coverage for DD and I will have to pay a penalty or something.
Have any of you thought much about this?
Re: Healthcare mandate
I am currently working through my company as well reading and learning about the changes. I haven't gotten as indepth it sounds, as you have. But I am already worried how it is going to effect us. We are NCP but provide health insurance for kids. It is NOT amicable.
My DH gets to claim ONE child but not both.
I'm not sure how that will come into play.
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This will be interesting. My H carries my DD on his plan, and we also carry both stepkids, and we switch off claiming SS but BM2 always claims SD on her taxes. I'll need to find out more about this.
I just want to clarify that what I'm doing at work doesn't have to do with taxes at all only benefits. It is only what sparked the thought in my head. I'm just googling info. Obviously the official IRS forms and pubs that would contain the information would not be released until closer to time to file taxes fro 2014, I would assume.
I'm getting my info from various articles. It's not a fact. Just what I am reading and was wondering if anyone else had read anything in regards to this.
I did find this which sort of backs it up though:
https://www.law.cornell.edu/uscode/text/26/5000A
What I've read simply says that anyone who provides minimum essential coverage will provide proof of that to the individual, which begs the question of whether the proof will be sent to the child, the custodial parent, or the parent paying for the insurance. My guess is this is something that will be ironed out as this rule goes into effect and as the IRS and HHS issue rules.
FWIW, I'm not on my husband's health insurance and yet I've never had a problem getting information on my son's claims and benefits because I am his parent.
Married Bio * BFP Charts
Oh that's right, there is that form the other parent can sign, as long as your other parent isn't a hostile party who refuses (as was our case) Thanks for the reminder
So am I to understand there is a healthcare tax benefit for the person claiming the child that year, or is it that they avoid a penalty?
So confusing.
There is no benefit to being the one to carry the insurance. They simply avoid the penalty.
I don't understand what everyone is freaking out over. Insured? Yes? Business as usual.
Married Bio * BFP Charts
The insurance company cannot give you info on BD or anyone else on the plan, but they have to on your child. Our BM cannot have info without DH's signature every time, because she called and preteneded to be me and tried to get info and change things on DH, DS, and I.
I've been reading so more more and I also found this: https://www.ofr.gov/OFRUpload/OFRData/2013-21157_PI.pdf
This is further explanation if you look at pages 5-7. Yes, ultimately the liability is on the parent claiming the exemption of the dependent. It appears that it is possible to get a hardship in some cases in BF situations if a CO points the contrary.
That wouldn't apply in my case or BM's case. Ex and I agreed to put DD on SM's coverage because mine kept getting worse but since he has NEVER had insurance on her before and our CO has always said that I would cover her. DH's CO still says BM is ordered to cover the kids and we still pay her the old premium amount even though I cover them under my insurance now since she dropped their coverage for no reason and didn't tell us.
But basically, from what I have read if you are able to produce the proof of insurance (unclear if there will be a new standard form for this with new regulations) then you should be okay regardless of who is paying for it. So so long as I am able to get the forms from SM or her insurance company then I would be okay, same with BM.
I am certain that the Insurance Companies will be sending you proof, just as you get W4's sent in the mail. It will be automatic. Can you imagine Insurance companies being swamped with requests for proof?
+just+j+ I think the problem/concern is the proof going to the parent that carries the insurance vs. the parent that is needing it for IRS purposes. In our case our health insurance company doesn't have the first bit of contact info for BM it is only DH. The kids live primarily with BM though.
So if DH were an Ahole and didn't forward that proof and BM was unable to obtain it any other way...hence the concern.