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Covered California and Obamacare related questions from consumers, employers and agents are answered by Phil Daigle with the best information available at the time. Archived entries may no longer be accurate as the Covered California and Obamacare knowledge-base is evolving quickly. TO REQUEST A PERSONAL RESPONSE INCLUDE EMAIL ADDRESS.


Adult Dependent Applying for Coverage?

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Question: I am trying to apply for Covered California health care. I am an adult (over 26) who is living at home with my parents. I am also listed as a dependent on my parents income taxes because they are helping to pay for my college tuition fees. Should I be applying as a household as 1?

Answer: No. Since your parents are claiming you as a dependent, you must apply as a 3-person household of with them on the application and opting out of coverage and using the entire household's income. If you agree to file your own tax return in 2014, you can apply as an individual using your own income. Here are some things to consider if you do strike out on your own: (1) Unless your 3-person household income is less that $50K, you'd be better off buying coverage for yourself off-exchange, (2) if you estimate your own income to be less than $15,500 in 2014 you will be eligible for Medi-Cal, (3) your parents will give up a $2,000 tax deduction.

47 Comments

I’d like to know or get a link to something that concerns an adult child receiving medi-cal and living with parents; parents want to claim a dependency exemption. What affect will this have on the household income? Will the disabled adult be disqualified from medi-cal?

Also, what will be the cost of medi cal for them? Thanks

I have a similar situation. My question is how to fill the aplicatiom then. Mark option that they can be claimed as dependent and state income of those who file taxes or dont mark that option because they are aplying for insurance in 2017 and for that year the tax hasnt been submitted yet. In that latter option, if not claimed as dependents, dontgry have file that tax return mentioned by big3? Thank you

Big3, Your parents will be eligible for Medi-Cal once they have a green card. It doesn’t matter if you claim them as dependents or not.

  1. In 2016, my parents live with me and are qualified to be claimed as my dependent.
  2. I submitted green-card application for my parents in the summer and estimated to be approved by summer 2017.
  3. They don’t have any income

Question 1. Per my household income ($120k), I am exempt to buy health insurance for them, due to affordability test per Covered California. 2. When can my parents apply for MediCal? 3. Can I claim them as dependent in 2016 (tax benefit) and let them file separate tax return in 2017 (Medical subsidy)?

Thanks.

Lorelie …

Based on your post, as a minor, I’m not certain that your son is actually eligible for Medi-Cal, unless he has been declared lawfully emancipated by the Superior Court — he has to be a member of someone’s household.

If his aunt claims him as a dependent because she is providing more than half of his annual support, that certainly eliminates anyone else’s ability to also claim him as a dependent, it doesn’t necessarily mean he would be considered a member of that household (although he probably should be).

The evaluation that the local Medi-Cal agency should make is whether the living arrangement is simply for the convenience of the child (to be able to attend school, for example) or if it is a de facto foster child scenario, in which case he should be treated as a member of the household.

My 16 year old son, student has been enrolled with Medi-Cal and has been living with his aunt for a year now. His aunt is considering to make him her tax dependent for 2015, her annual income is more around 80k I believe, if she claims him as a dependent, can my son still continue to be eligible with his Medi-Cal health coverage? Please help. Thank you

Doug …

It sounds to me like your daughter has been enrolled in Medi-Cal, not a true health insurance plan purchased through CoveredCA. Please correct me if I am wrong.

Your actual question is not about health insurance but about income tax. I am not an income tax professional, and my agent agreements with the insurance companies I represent prohibits me from giving anyone tax “advice,” but as I understand the Internal Revenue Code, if a person is providing more than 50% of the annual support for anyone else, that taxpayer may claim that other person as a dependent on his/her income tax return. An adult (or child, for that matter) who has been claimed as a dependent who is also required to file a tax return simply cannot claim the “personal exemption” on his/her return that most other taxpayers are allowed to claim, which could potentially increase the person’s income tax liability by as much as a few hundred dollars.

If your daughter’s 2015 income was only $600, she most likely remains eligible for Medi-Cal. She is required to file a tax return, but at that income level, would have $0 liability.

Max, my daughter was a full time student, was 23 years old at end of 2015, and was living at home with us and paying her own expenses from some money she had saved. Her health plan in 2015 was Covered CA and she had no premiums to pay (is that the income assistance program?). She had about $600 income on her own. Can we claim her as a dependent?

BTW you are 100% correct on the socialism issue and it refreshing to know there are some people, even government employees, who know the direction we are heading has terrible consequences.

Hanrod commented on some other thread that has no relevance to this one. However, since it’s here, I feel compelled to respond. He writes:

“… it WILL eventually be necessary that the U.S., and many other first world countries, become even more “welfare states”, whether we like it or not.”

NO! It is not a given that the U.S. MUST become a welfare state — at least, not to a much greater extent than we already are. If we stop electing socialists and communists to high political office and replace them with capitalists who have business sense, we can begin to undo the damage that has been done in the past 8 years or so.

On the other hand, if the electorate elevates either of the two socialists now running for POTUS in 2016 to that office, America could easily become a true welfare state, where young people say to each other … “Hey, I can party all night and sleep all day and never have to work because the government gives me everything I want for free.” With an unproductive society such as that, America will certainly be doomed to repeat the mistakes of the Soviet Union, whose people continue to long for a return of communism because today they are forced to work and they don’t want to.

I have already commented in another thread how a single-payer national health care system patterned after Medicare will utterly bankrupt the country. Insurance companies are currently getting as little as ten cents on the dollar for the Medicare claims they were supposed to receive reimbursements from Uncle Sam in 2015, which has bankrupted some, caused others to exit the marketplace in some states, and will inevitably lead to higher premiums for the few they have left to insure. A single payer system that cannot handle the claims of persons over age 65 will surely not be able to handle the claims of all persons under age 65.

Not without massively higher levies in the form of income and other taxes. When no one is working, from where will that revenue come? Want a current example: Look at Greece, where more than half of all workers are employees of government, not private enterprise, and where the debt to GDP ratio is slightly better than that of the U.S. — which no one seems to pay attention to or mind.

Max, I doubt that any IRS website includes the statement you added along the lines of “growing up”, etc., etc. You apparently have no idea of the real life problems out there for young people who are entirely unable to get and/or keep any employment, to say nothing of a living wage, and likely never will. There are many possible reasons for this, including disabilities that parents have not been willing to recognize or for whom the parents are unable or unwilling to claim government disability status and payments; along with the difficult process for claiming them. Further, jobs are fewer with our “offshoring” of our labor, automation, etc., and even higher level jobs are now among those lost. Just getting and keeping any employment is well documented as becoming increasingly difficult, even for reasonably physically and mentally able adults, to say nothing of those who are simply “unappealing” in appearance, mannerisms, etc., etc. The (now international) competition for the limited amount of paid employment is increasing, and it WILL eventually be necessary that the U.S., and many other first world countries, become even more “welfare states”, whether we like it or not. You, in fact, are a prime example of those who need to “grow up”.

Cecilia…

You won’t be subject to any penalties, but you will probably have to repay some of your premium tax credits. When you prepare your 2015 tax return, the worksheet for reconciling income, premiums, and tax credits will help you determine what your liability is, if any.

I applied the Silver 73 for our family of 4 in Jan. 2015 with an income of 49000. In May, 2015, my daughter aged 24, got a job offer at $21000 till now. And I forgot to inform Covered Ca to remove my daughter from our health coverage. So she has been staying with our plan in 2015. My daughter is going to file her own tax return for 2015. Because we can no longer claim her as our dependent. Therefore, with the change of number of people, are we expected to a penalty or to pay back a portion, since we have been receiving subsidy for the entire year?

Candace … I should have added that COBRA continuation would extend for up to 36 months, after which time your son would need to enroll in a consumer health plan or apply for Medi-Cal if his income remains below 138% of the Federal Poverty Line (FPL)..

Candace …

Your son will not qualify for premium tax credits because he has no income, but he will qualify fo Medi-Cal. You and your son have two choices: (1) he can remain on your husband’s employer-sponsored health plan under COBRA continuation rules. He would have to pay 100% of the premium for that, and could be charged up to an additional 2% for the employer’s administrative expense. Or (2) he can make an application through CoveredCA as a household of 1. He would need to state that he does not have an offer of employer-sponsored health insurance in the appropriate place on the application.

On the income tax reporting question, it would be OK to list that he is claimed as a dependent on your tax return, if that is the case. He would still need to declare that he will file a 2016 income tax return as a single person, and when he does file, he can note on that return that he is claimed as a dependent on someone else’s return if that’s true.

With $0 income, your son will be MAGI-Medi-Cal eligible.

HI, I have a 26 year old at home with no income and he has Asperger’s (Autism)-this has made it difficult to get and keep a job. Although, he was able to go to college, Asperger’s made it too difficult to graduate. We need to get him health insurance and we are confused as to what we do. We have our own insurance through my husbands’ work (Retired insurance). We do not need the covered California, but our son does. Do we put in a household of 3 with over $120,000 annual or do we count our son as his own household, (no income at all)-we support him completely.

Thank you, Candace

Jean …

If your daughter is not claimed as a dependent on your federal tax return, then,even if she lives in your home, she is considered a “household of one” and her separate income is the determiner of eligibility for either an individual health plan (on or off the exchange) or Medi-Cal if her income is below 138% of the Federal Poverty Line. If she is eligible for Premium Tax Credits (income over 138% FPL and below 400% FPL, then she must purchase a health plan through Covered California.

Our 24 year daughter lives at home with us but we can not claim her as a dependent for tax purposes. She is currently insured by my husband’s employee health insurance cafeteria plan. Do you know if she would be eligible for health insurance through Covered CA exchange if we take her off our health insurance plan before she is 26 years old?

Thank you!

Dennis …

If your parents have been in the US more than 5 years and are over age 65, technically, they must apply for Medicare Parts A & B. The problem with this the penalty for late enrollment — 10% of the Part A premium for twice the number of months of nonenrollment, and a cumulative lifetime penalty of 10% for each full 12 months of nonenrollment in Part B, plus a cumulative 1% per month for each month of nonenrollment (or noncredible coverage) in a Part D prescription drug plan. The penalties begin accruing as of the date a person was first eligible to enroll in Medicare — at age 65 for most persons.

The premium in 2015 for Part A is $0 for persons with 40 Social Security credits, $234/mo for persons with 30-39 credits, and $426 for persons with less than 30 credits. (A person may continue to work and earn credits after age 65). Part B premiums are $104.90/mo for most persons, but with higher incomes, Part B premiums can be as much as $335.70/mo. The average cost for a Part D standalone PDP is about $35/mo in CA. It has been rumored that Medicare premiums will rise somewhat in 2016 — the numbers for 2016 will be announced in the next couple of weeks.

A person who is NOT SUBJECT to the late enrollment penalties but who does not have the full 40 credits to receive premium-free Part A coverage under Medicare, will still pay far less in total premium for Medicare Parts A & B plus a Part D PDP (unless they have exceptionally high incomes) than they will for any Silver, Gold, or Platinum plan through CoveredCA or off the exchange. Additionally, depending where in CA your parents are residing, as Medicare beneficiaries, they would be eligible for enrollment in a Medicare Advantage plan with Prescription Drug benefits that will likely cost $0 additional and have much lower out of pocket expenses than under any CoveredCA plan.

CoveredCA has adopted the position that if a person is required to pay a premium for Part A of Medicare (everyone pays a premium for Part B), they may “disenroll” from Medicare in order to enroll in a health plan through the exchange. They are not going to be eligible for premium tax credits to pay for health insurance. And if they later decide to reenroll in Medicare, they will be subject to the premium penalties

However, in order for this to happen, they must ALSO have income above 138% of the Federal Poverty Line. If they have no income, or their income is less than 138% of FPL, they will be eligible for MAGI Medicare. The problem with that is that Medi-Cal cannot provide them with primary coverage because of the Medicare rules that were adopted as part of the funding mechanism for the PPACA. The CoveredCA rule change is really only effective for persons who are immigrants with less than 5 years in the US or persons whose income is more than 138% FPL,

If you make your parents your dependents for income tax purposes, your household size will increase, which could increase the amount of premium tax credits you could receive … EXCEPT you stated that you have an employer-sponsored health plan, which means you are ineligible for premium tax credits. So I think there is no point to adding your parents as your dependents.

So much for the free health insurance people thought the PPACA was going to provide.

My parents are immigrants and aged. No income or SS benefits. They live with me, I have employer provided insurance. Too bad, I cannot cover my parents. When applying for coveredca, should my parents apply as zero income household? They don’t claim me as dependent nor I do. If I claim my parents as dependent, does that change the equation?

Sandra …

You have to look at the entire picture. There is no difference in the gross “premium” for health insurance. Each adult over age 20 has an individual premium based on his/her own age.

Then you have to look at the figures for household size and income to see where you fall in relation to the FPL. If your son has his own income, lives in your home, and is added to your CoveredCA application, then his income increases the household income and may decrease both your premium tax credits and his.

If this is the case, then it would be best to let him make his own application for health insurance and everyone obtain the maximum tax credits available.

Do I add my adult son 20 almost 21 to my covered California application if he lives in our home makes his own money but we can’t claim him as a dependent on our taxes?

I should have added one thing about tax credits.

If you are carried as a dependent on someone else’s tax return, that someone else is the taxpayer who can claim the premium tax credits. You cannot be a dependent and claim the premium tax credits for yourself.

You can, however, still file a separate tax return and your income would be included in the household (of 3) MAGI.

The question I have is if you are unemployed, would you have any income to report on a Form 1040? And if you have income, are your parents actually providing more than 50% of your financial needs? If not, they cannot claim you as a dependent.

RIW …

If the household (of 3) income is “around $30k”, then you should be eligible for a Silver 87 plan. Your parents would be listed on the application but would simply not apply for coverage, even though you would.

Under $29,685 (but above $27,311), a household of 3 qualifies for Silver 94. $29685 to $39,579, a household of 3 qualifies for Silver 87, and $39,580 to $49,476 the eligibility is Silver 73. All would provide superior coverage to a Bronze plan.

The Silver 94 is superior in most ways to a Platinum plan, and Silver 87 benefits are between Gold and Platinum, but with a nominal annual medical deductible. Silver 73 is a bit more beneficial than standard Silver 70, with modest cost-sharing reductions.

Apologies for resurrecting this thread/topic but my question is very similar and I’d appreciate any help provided.

I’m over 26 and unemployed. My parents have been kind enough to let me live with them during this time and have claimed me as a dependent accordingly. Despite being claimed as a dependent I still file my own taxes. They are both on fixed incomes as one is retired and the other permanently disabled; they are also both on Medicare. Their projected income for 2015 is around $30k according to the CC website application (this is after deductions).

Due to this I’m apparently not eligible for Medi-Cal but rather am expected to pay $203.56/mo for the lowest cost Bronze plan. Is that correct or is there something I’m missing when it comes to reporting income or household information on the application? Despite being over 26 and currently a dependent my parents should not be expected to pay for my health insurance, especially when they’re trying to make it month to month as it is.

B. Lee …

Unless your 27-year-old child is totally disabled, he should never have been included on your health plan in 2014. Your qualification for the Silver 94 plan may also have been erroneous, based on a larger than actual household size.

If your son has $0 income in 2014, then he is eligible for Medi-Cal and could have enrolled into Medi-Cal at any time of the year. He can do so by filing an application today.

On or after 11-13-2014, you should be able to go into your account on the CoveredCA website and record the change in household size, household income, and drop your son from coverage (having first submitted a CoveredCA application for your son on his own).

Your actual premium tax credits will be reconciled when you file your 2014 federal income tax return in a few months. You may have to repay a small portion of the total you received this year.

My adult son (27 as of Oct.) is on my Kaiser Silver 94 policy thru CC. We were not told he needed to opt out during application with CC phone rep in Feb. The system lists him as my dependent son and was not kicked off by CC computer system. He is unemployed and will not be filing a tax return for 2014. How do we rectify this and how will this affect my taxes? Should he be on Medi-Cal in 2015?

Keita …

If your daughter’s permanent residence is in your home, even though she is away at school, then, yes, you can list her as part of a household of 2. You must also indicate that she DOES NOT WANT health insurance, since she has coverage under an employer-sponsored plan.

As for AGI, if the number is less than $21,404 (household of 2) or $15,856(household of 1), then you are eligible for Medi-Cal. If your daughter receives any form of disability income payments, those amounts must be added into AGI. It’s what the government calls “Modified” AGI (MAGI).

Question for you as I cannot get thru to CC and it’s been over a week. Anyone have a number I’m not aware of?

Here’s the question. 19 year old fully disabled living away at school Monday - Friday and home only on weekends. Parent is a divorced mother. 19 year old is covered on her father’s insr. policy.

Shall I list her as part of the number in household even though she is home only on weekends?

2nd question. Mother has rental property of about $60,000 but her AGI line 37 shows a negative $3,497. Can this be correct? if so, she’s eligible for medical??

Thanks, Max. Just to confirm, I called the CC agent service again this morning and this time the rep confirmed that a over 26 person who was claimed as a dependent would not receive APTC.

“Did I understand you correctly?”

I guess it depends on how you choose to read the IRC and CFRs. If you read them the way I do, and the way I have written about them for Navigator and CAC training manuals for the states of Nevada, Missouri, Montana, Texas, Wisconsin, and several other states, then, yes, you understand me correctly.

The authorities from the various states who ultimately approved my writing did not question this as they were making sure everything I wrote was state-specific and federally correct.

I have no idea what CoveredCA tells others who ask about this.

I also know that an application I submitted (twice) in the last three days with annual income clearly above the Medi-Cal eligibility limit (by about $600) was calculated as being within rather than eligible for Silver 94. The problem was that I entered the income as monthly amounts instead of annual — go figure. After two separate phone calls to CoveredCA on two consecutive days, and a total of more than 90 minutes on hold and in conversation with the CSRs, I learned something new: listing monthly income amounts is more likely to result in a “calculator error” than listing annual income amounts — but apparently not all of the CSRs know this.

So after more than 150 applications, I’m no longer going to enter monthly income amounts as such.

Steve wrote … I am aware of a “58 year old dependent” (to her mother)

Clearly, this violates the IRC and CFRs as I outlined them verbatim from the respective Codes. When push comes to shove in 2015, it will be interesting to see what happens with the premium tax credits.

Max, see if I’m following you correctly. You are saying no one over age 26 who is (not disabled and) claimed as a dependent on someone else’s tax return can ever receive tax credit. Did I understand you correctly?

I am aware of a “58 year old dependent” (to her mother) who was determined to be eligible for Advanced Premium Tax Credits and successfully enrolled in to a Covered CA plan. The dependent completed an application as a household of two and waived health insurance for her Medicare receiving mother.

When the PPACA was enacted, it permitted for the first time, adult children up to but not over age 26 to remain on a parent’s health plan, but at or after age 26 those persons must obtain health insurance on their own or face the “Shared Responsibility Payment.” The PPACA does not distinguish a child as a dependent — a married “child” age 25 living in his/her own home — even in another state — can still be carried on mommy’s or daddy’s health insurance plan. It has absolutely nothing to do with dependency on a tax return.

There is an exception for persons who are totally disabled prior to age 26 and are incapable of self-support, but I do not believe that is the case in this thread by “Agent”.

There is nothing to prevent a person from being carried as a dependent on someone’s federal income tax return if they are being supported at least 50% by that taxpayer. But there is a technical definition of “dependent” in the Internal Revenue Code (cited further on down in this post) that you should be aware of, too.

Still, that does not make a person eligible for dependent coverage under a health insurance plan if the person is age 26 or older. That adult must join the real world and purchase health insurance. But if carried as a dependent on someone else’s tax return, then the person age 26+ in ineligible for premium tax credits.

The following statement can be found on the IRS website:

ELIGIBILITY In general, you may be eligible for the credit if you meet all of the following: + buy health insurance through the Marketplace; + are ineligible for coverage through an employer or government plan; + are within certain income limits; + do not file a Married Filing Separately tax return; and + cannot be claimed as a dependent by another person.

The 26+ year-old is, by law, ineligible for coverage under a parent’s employer-sponsored plan. If the 26+ year-old is being claimed as a dependent on mommy’s and daddy’s tax return, Phil’s suggestion to make mommy+daddy+child a household of 3 — whether mommy and daddy “do not want health insurance” — does not work because the “child” who refuses to grow up is also not the primary tax filer, but a dependent, and therefore ineligible for premium tax credits. See below:

FILING STATUS If you file your tax return using the filing status Single, Married Filing Jointly, Head of Household (including married individuals who qualify to use the Head of Household status) or Qualifying Widow/Widower, you may be eligible for the premium tax credit if you meet the other criteria. If you are married and you file your tax return using the filing status Married Filing Separately, you will not be eligible for the premium tax credit.

http://www.irs.gov/uac/The-Premium-Tax-Credit

Furthermore, the implementation of the PPACA premium tax credits is found in the Code of Federal Regulations, 26 CFR Part 1, Section 1.36B-1(f) which states, under the heading “Definitions,” that:

“(f) Dependent. Dependent has the same meaning as in section 152.”

http://www.gpo.gov/fdsys/pkg/FR-2012-05-23/pdf/2012-12421.pdf

Section 152(c)(3) of the Internal Revenue Code says this about dependents:

“(3) Age requirements (A) In general For purposes of paragraph (1)(C), an individual meets the requirements of this paragraph if such individual is younger than the taxpayer claiming such individual as a qualifying child and— (i) has not attained the age of 19 as of the close of the calendar year in which the taxable year of the taxpayer begins, or (ii) is a student who has not attained the age of 24 as of the close of such calendar year. (B) Special rule for disabled In the case of an individual who is permanently and totally disabled (as defined in section 22 (e)(3)) at any time during such calendar year, the requirements of subparagraph (A) shall be treated as met with respect to such individual.

http://www.law.cornell.edu/uscode/text/26/152

I hope this puts the discussion to bed once and for all.

The government did not do anyone any real favors by extending eligibility for health insurance as a dependent to persons up to and including age 25. All of you who are 18 and older need to grow up, stop playing your Nintendo and X-Box games, become productive members of society, and pay your own way in this world. It’s a novel concept once known as “Personal Responsibility.” (Notice, Congress chose to call the penalty for not having insurance the “Shared Responsibility Payment” — even they cannot man-up and call it the “Personal Responsibility Payment” — because it really isn’t … the rest of us taxpayers are footing the bill for these premium tax credits, now and forever into the future.)

Max, I saw your reply to my question via email. I still don’t understand why over age 26 dependent has to apply as a household of 1. I already spoke to a CC agent rep and she said the same thing as Phil viz. the adult dependent should apply as a household of 3 and have the parents opt out (but then she wan’t full of confidence, either). Can you explain why you think “Being claimed as a dependent doesn’t have anything to do with ACA tax credit”? Thanks.

A child over age 26 may be claimed on a person’s income tax return as a dependent under IRS rules if someone is providing more than 50% of their annual support, but that does not have anything to do with the PPACA as far as premium tax credits are concerned.

There may be an exception beyond age 26 if the child is totally disabled prior to age 26 and remains continuously disabled (which usually means incapable of self-supporting employment due to mental or physical disability according to the Social Security definition of “any substantial gainful activity”). But there has been no mention of such disability.

Max, what if the adult child over 26 is claimed as a dependent on the parent’s tax return?

A “child” age 26 or older must apply for his/her own coverage as a household of 1. You would not include that “child’s” income as part of your larger household income, and you would reduce your household’s size by one member.

To do this, you need to access your account, click on “Report a Change” and “remove” the “child” from your household, go through all the rest of the pages of your application by only clicking the “Continue” button at the bottom of each page until complete.

When you reach the eligibility page, you should see an immediate change in your household’s statue and qualifications. You or your “child” will have to resubmit a new application for him/her and see what the result is.

By separating out the “child”, you both may end up eligible for larger premium tax credits, but I don”t know what your income situation is, and I could be wrong.

As long as California is your permanent residence, and you are a citizen, naturalized citizen, or legal resident of the US, one day should be sufficient. You would demonstrate this “permanency” by evidence such as a California Driver License or similar documentation.

How long must one be in california to receive cover california?

Agent 10 …

Although you will probably have to wait on hold for an hour, it would be best to call CoveredCA. They now have a “dedicated” agent line 855-777-6782. The CSR can make the change you need.

My client income was put in wrong , went in to change it on the site. Was told the site is not functioning to update the income change to the carrier(s) to adjust the prem. Is this true and if so then my client will be paying over $100 more for his CC plan. When will the carrier or if carrier get this updated?

Max, that was a typo, now corrected to $50k.

That was meant to be $50k

“(1) Unless your 3-person household income is less that $50, you’d be better off buying coverage for yourself off-exchange,”

Please explain this. It makes no sense to me.

“(3) your parents will give up a $2,000 tax benefit.”

Not exactly accurate. $2000 may be the personal exemption for a dependent, but it is not the amount of tax savings. At the 39.6% bracket, it amounts to a maximum tax reduction of $792. The “tax benefit” diminishes as the marginal tax rate declines.

I would like to add that the parents could lose up to a $2,000 lifetime learning tax “credit” (phased out after 2014 MAGI reaches $128,000 for parents married filing jointly) and a dependent exemption (aka deduction) equal to $3950 if the adult student chooses to file taxes as a separate individual for year 2014.

Also, did you intend to type $50 for consideration (1)?

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