Level 2

ACA and mid-year graduation

Forum|Forum|10 months ago
August 20, 2025
1 reply
6 views

Does form 8962 need to include a graduating students income earned after June if they were only on the parents ACA plan January through May (exit the plan to move to jobs plan)?

T

TaxGuyBill

Level 15

If the former student is a dependent and their income was high enough to have "taxable income", yes, the income is added to the parents' 8962.

As a side note, make sure the SLCSP is correct (it should have changed mid-year when the kid became eligible for employer insurance).

A

Anna123Author

Level 2

Thank you. To avoid having to add the students income could the student not be included on taxes that year as a dependent? The form asks for household size, which they would no longer be a part of yet they will have been part of it the first half of the year while on the ACA.

T

TaxGuyBill

Level 15

Unless the child had expected to be a non-dependent and something unexpectedly changed so that they qualify as a dependent, the parents are responsible for the reconciliation of the Premium Tax Credit.

Just in case ... have you double-checked that the child is eligible to be claimed as a dependent?

As a side note, while adding the student's income lowers the credit, having the additional member to the family size is a good thing (it increases the credit).

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