Hi there, I am a disabled single individual, parent of one child who just graduated college. I am not even required to file returns but I have the last 4 years for financial aid purposes. I get Medicare and so he has had his own individual health policy that for the last two years was bought through the marketplace. No problem filing our 2016 returns because I had no AGI and he had very little, we both filed 1040As and no tax was due. This year will be tricky however and I am not sure what to do. We take a $200 monthly premium tax credit for his health policy. Starting in August, he will be working full time and eligible for employee health plan on 9/1. Since he will be making money and having taxes deducted, I am assuming he would file 2017 tax return as an individual, no longer my dependent. If this happens, are we going to get slammed for the premium tax credit, since I can no longer file him as a dependent? ====>Yes I think so;your advanced tax credit is larger than your premium tax credit you need to pay penalty on your return.the penalty amount is also based on the number of months you or your dependents were uninsured.
Looking for advice as a bill for $1600 in premium tax credits will be impossible for me to pay.==> If you can?t pay the taxes you owe, the IRS has payment options available. Which option might work for you generally depends on how much you owe and your current financial situation. Each option has different requirements and some have fees. If you can?t pay in full immediately, the IRS offers additional time (up to 120 days) to pay in full. It?s not a formal payment option, so there?s no application and no fee, but interest and any penalties will continue to accrue until the tax debt is paid in full.
For information on the additional time up to 120 days, please call the IRS toll-free at 1-800-829-1040 (individuals)