Success getting healthcare coverage for immigrant parents over 65

[Mia77 2]

Also remember NOT to claim them as dependents on your tax return (if they are not likely to work/have income in the US) The resulting tax credits for the premium will be well worth it.

I used tax adviser help when was doing tax returns for me and my parents this year.

The sad news are that if parents qualify as dependants by IRS then

1. They can't claim personal exemptions for themselves on their tax return.

2. They don't qualify for premium tax credit.

and It doesn't matter if somebody claims them as dependant on his/her tax return (or decide not to claim for some reason).

Edited February 23, 2016 by Mia77

[Umka36 781]

I used tax adviser help when was doing tax returns for me and my parents this year.

The sad news are that if parents qualify as dependants by IRS then

1. They can't claim personal exemptions for themselves on their tax return.

2. They don't qualify for premium tax credit.

and It doesn't matter if somebody claims them as dependant on his/her tax return (or decide not to claim for some reason).

You're right, it does say cannot be claimed as a dependent by another person.

https://www.irs.gov/Affordable-Care-Act/Individuals-and-Families/The-Premium-Tax-Credit

Basically you would have to make sure your parent is not your dependent (which would be difficult if you provide 50% or more of your parents total support).

https://www.irs.gov/publications/p17/ch03.html#en_US_2015_publink1000170967

[Merrytooth 5,748]

You're right, it does say cannot be claimed as a dependent by another person.

https://www.irs.gov/Affordable-Care-Act/Individuals-and-Families/The-Premium-Tax-Credit

Basically you would have to make sure your parent is not your dependent (which would be difficult if you provide 50% or more of your parents total support).

https://www.irs.gov/publications/p17/ch03.html#en_US_2015_publink1000170967

So missad's advice of "Also remember NOT to claim them as dependents on your tax return (if they are not likely to work/have income in the US) The resulting tax credits for the premium will be well worth it."

is credible or fraud?

[Umka36 781]

It would be fraud if you lied on your tax return.

If I were in this situation, I would hire a tax advisor (CPA) to make sure whatever I do is legit. Tax laws are complicated, and in this case I would prefer that someone prepares/reviews/signs off on my tax return to avoid any headache in the future.

[Mia77 2]

So missad's advice of "Also remember NOT to claim them as dependents on your tax return (if they are not likely to work/have income in the US) The resulting tax credits for the premium will be well worth it."

is credible or fraud?

This statement: "Also remember NOT to claim them as dependents on your tax return (if they are not likely to work/have income in the US) The resulting tax credits for the premium will be well worth it." - is false.

As soon as your parent qualified to be your dependent by IRS (you pay more then 50% of his/her expenseses and his/her income less then $4000, see IRS publication for more information on this) your parent is not eligible for premium tax credit (not depending on do you claim his/her as dependent on your tax return).

[missads 59]

So missad's advice of "Also remember NOT to claim them as dependents on your tax return (if they are not likely to work/have income in the US) The resulting tax credits for the premium will be well worth it."

is credible or fraud?

Please refrain from using strong language like "fraud". If you follow the discussion on the previous page (e.g. look at Post #27) I have pointed to instances where the forms indicate LPRs are eligible for premium tax credits.

I believe there is some confusion on the definition of "dependent". USCIS' definition of dependent (i.e. beneficiary of a visa sponsor via form I-864) is different from the IRS' definition of a tax dependent.

My research indicates that if parents with no income file taxes separately, there are not considered a dependent. They are not considered a part of the sponsor's "tax household" even if they are part of the "physical household" i.e. live at the same address as the sponsor. Mia77 disagrees with this. My parents have applied and been approved for insurance coverage with premium tax credits. Has Mia77, or anyone else for that matter, applied and been turned down based on the "dependent" clause? We have both made our points, you can do your own research and come to your own conclusions.

Healthcare.gov reviewed my parents' immigration status, tax records etc. and determined that they were eligible for premium tax credits. We provided all the information they asked for (copies of green cards, SSN for looking up tax and other government records) We did NOT withhold any information, we did NOT commit fraud. We went through a certified healthcare navigator, even he confirmed that there was a lot of misinformation out there, and that LPRs are indeed eligible for tax credits.

I'm just trying to help by sharing my experience on the forum. I do not appreciate my advice being called "fraud" when I'm trying to help other folks in a situation similar to mine.

[Umka36 781]

I still recommend seeing a tax expert, since the premium tax credit (PTC) is a tax issue. A certified healthcare navigator in my opinion is no tax expert. FWIW, I know LPR are eligible for the tax credit.

The main issue is how it is applied, because it drastically affect the amount of PTC. I'm just basing my reasoning on what I read from the IRS website in regards to a qualifying relative. If they do meet the test, then the elderly parent could potentially be someone's dependent whether that someone claims them or not. This comes back to what mia77 said about "cannot be claimed as a dependent by another person" that is on the IRS section about PTC eligibility. I stand corrected if I'm wrong, but if I'm correct it's going to be a headache if you have to pay back the PTC which is why I say see a tax professional.

This can be an heated issue, because it does not make sense that a new immigrant can get better health coverage at almost no cost when the average tax paying working American wouldn't qualify. To be honest I feel the same way, but I also realize if it's within the law I have to accept it.

[missads 59]

I have attached a snippet of the relevant section from IRS Form 8962 (the form used to reconcile Premium Tax Credits)

Look at the instructions for line 6, the question used to determine whether a person is eligible for PTC or not.

(1) Taxpayer or an individual in taxpayer’s tax family enrolled in a qualified health plan through the Marketplace, and the enrolled individual is a lawfully present individual ineligible for Medicaid due to immigration status.

LPRs who have been in the US for less than 5 years are ineligible for Medicaid due to their immigration status (there is a 5 year waiting period, except in California.)

Did I mention this is from the very form the IRS uses specifically to address PTCs? If this is not relevant, I don't know what else is.

I do agree that it is best to consult a tax advisor if you have any questions. Be sure to point out the above to them.

Edited February 25, 2016 by missads

[NigeriaorBust 4,087]

The LPR may have to declare the imputed value of the income they are getting from their housing and other things from their children

[Mia77 2]

My research indicates that if parents with no income file taxes separately, there are not considered a dependent. They are not considered a part of the sponsor's "tax household" even if they are part of the "physical household" i.e. live at the same address as the sponsor. Mia77 disagrees with this. My parents have applied and been approved for insurance coverage with premium tax credits. Has Mia77, or anyone else for that matter, applied and been turned down based on the "dependent" clause? We have both made our points, you can do your own research and come to your own conclusions.

Healthcare.gov reviewed my parents' immigration status, tax records etc. and determined that they were eligible for premium tax credits. We provided all the information they asked for (copies of green cards, SSN for looking up tax and other government records) We did NOT withhold any information, we did NOT commit fraud. We went through a certified healthcare navigator, even he confirmed that there was a lot of misinformation out there, and that LPRs are indeed eligible for tax credits.

Dear Missads,

I very appreciate that you are trying to share you knowledge with community.

I am very sorry to deliver bad news to you.

This your statement is unfortunately not true: "My research indicates that if parents with no income file taxes separately, there are not considered a dependent".

The parent considered by IRS as your dependent - if you pay more then 50% of their expences and their income less then $4000 this year. It doesn't matter do they live with you or not, do you claim them as dependent on your tax return or not, do they file their taxes or not. This information is from certified tax adviser.

It looks like your parents made a mistake filing taxes for 2014. It looks like they claimed personal exemptions. If they qualify as your dependents they had not to do this. When they don't do this - it indicates to IRS that they are the dependent of somebody and this disqualifies them from premium tax credit.

You are are writing that "Healthcare.gov reviewed my parents' immigration status, tax records etc.". Their decision was based on your parents not correct tax return for 2014.

If IRS will do audit of their tax return - they will be in trouble unless they will be able to prove that they paid more then 50% of their expences.

Hope this clarify the issue.

[missads 59]

It looks like your parents made a mistake filing taxes for 2014. It looks like they claimed personal exemptions. If they qualify as your dependents they had not to do this. When they don't do this - it indicates to IRS that they are the dependent of somebody and this disqualifies them from premium tax credit.

You are are writing that "Healthcare.gov reviewed my parents' immigration status, tax records etc.". Their decision was based on your parents not correct tax return for 2014.

If IRS will do audit of their tax return - they will be in trouble unless they will be able to prove that they paid more then 50% of their expences.

Hope this clarify the issue.

My parents did not claim any exemptions in their tax returns (0 income, 0 taxes, 0 exemptions.) I could have claimed them as dependents on my tax returns and gotten about $3950 x 2 in personal exemptions each year, but I chose not to. That is the tradeoff we made in return for them getting PTCs.

I think we have beaten this to death. There's really only one way to find out. If there is an audit or I run into any other trouble, I will share it in this thread. If I'm proven wrong so be it, but until then let's suspend judgment.

I wish all of you good luck in your search for affordable healthcare for your loved ones.

[Boiler 45,499]

Slightly intrigued as to how how pensioners have zero income?

[Umka36 781]

Slightly intrigued as to how how pensioners have zero income?

For those who want to read more.

https://www.irs.gov/Businesses/The-Taxation-of-Foreign-Pension-and-Annuity-Distributions

http://rsmus.com/what-we-do/services/tax/international-tax-planning/do-i-owe-us-tax-on-my-foreign-pension-

plan.html

http://www.expatattorneycpa.com/id70.html

https://www.healthcare.gov/income-and-household-information/income/

Edited February 26, 2016 by Umka36

[Kelvavik 1]

There seems to be a lot of mixed information here. According to https://www.uscis.gov/green-card/green-card-processes-and-procedures/public-charge, medicare it says:

[/i]

Q. What publicly funded benefits may not be considered for public charge purposes?

A. Non-cash benefits (other than institutionalization for long-term care) are generally not taken into account for purposes of a public charge determination.

Special-purpose cash assistance is also generally not taken into account for purposes of public charge determination.

Non-cash or special-purpose cash benefits are generally supplemental in nature and do not make a person primarily dependent on the government for subsistence. Therefore, past, current, or future receipt of these benefits do not impact a public charge determination. Non-cash or special purpose cash benefits that are not considered for public charge purposes include:

• Medicaid and other health insurance and health services (including public assistance for immunizations and for testing and treatment of symptoms of communicable diseases; use of health clinics, short-term rehabilitation services, and emergency medical services) other than support for long-term institutional care
• Children's Health Insurance Program (CHIP)
• Nutrition programs, including Food Stamps, the Special Supplemental Nutrition Program for Women, Infants and Children (WIC), the National School Lunch and School Breakfast Program, and other supplementary and emergency food assistance programs
• Housing benefits
• Child care services
• Energy assistance, such as the Low Income Home Energy Assistance Program (LIHEAP)
• Emergency disaster relief
• Foster care and adoption assistance
• Educational assistance (such as attending public school), including benefits under the Head Start Act and aid for elementary, secondary, or higher education
• Job training programs
• In-kind, community-based programs, services, or assistance (such as soup kitchens, crisis counseling and intervention, and short-term shelter)[/i]

What it doesn't say anything about is if one goes in for treatment under a government health plan like Medicare or Medicaid and are held for long term treatment for illness or disease, who ends up paying the bill? Is it all covered & paid for under the government health plan? Is the sponsor responsible for the amount due? Or perhaps the sponsor is only responsible if they claim the immigrant parent as a depend on their taxes.

It seems there is little to no definitive information about this out there.

[UnaMexicana 153]

I think the best advise here is to go to a tax expert. Kudos for that suggestion.

A tax expert will look at your situation and be able to better advise you.