My parents are self-employed and buy coverage through the Marketplace. They earn too much to qualify for subsidies. I’m 24 and only earn $30,000 a year (about 255% of FPL.) My parents don’t claim me as a tax dependent, I file my own return. Can I be covered as a dependent under their Marketplace policy? If so, can I qualify for a premium tax credit and apply that to their premium?
Yes, you can be covered as a dependent up to age 26 on your parent’s Marketplace policy. If your parents don’t claim you as a tax dependent (and you file independently), then your eligibility for premium tax credits will be based on your income alone. With your income at roughly 250% FPL, you will qualify for a premium tax credit. Once you know the amount, you can decide to sign up for a Marketplace policy on your own, or be covered as a dependent on your parent’s policy until you are 26. If you enroll in your parents’ plan, you can elect to have your premium tax credit paid directly to your parents’ insurer each month, or you can claim it on your tax return later when you file.