Does ACA subsidy consider income of live-in boyfriend?

[Just-Lisa-Now-]

Is he a dependent of the taxpayer?  Dependent MAGI does come into play on the 8962.

[sjrcpa]

I thought it was "household income".

Bill will know. @TaxGuyBill 

[TaxGuyBill · Accepted solution]

For purposes of the Premium Tax Credit, "Household Income" only refers to people on the tax return (including dependents whose income is high enough to file).

So if the boyfriend is not a dependent, no, his income does not affect the Premium Tax Credit.

[sjrcpa]

Thanks. I knew you would know.

[sjrcpa]

@Greta  Listen to Bill and Lisa.

[Just-Lisa-Now-]

Bill, so if the boyfriend only had SS income and qualified as a dependent would his SS income have to be included (since gross SS is included in MAGI)? or only if he had a filing requirement?

[TaxGuyBill]

It would only be included if the dependent had enough "taxable income" that would require him to file a tax return (so other things that require him to file, such as for SE tax, would not trigger it).

And in my opinion, even if his income was a bit over the filing requirement, a contribution to a Traditional IRA (to reduce his "taxable income" to $0) would eliminate the need for the income to be included (despite the way the Instructions phrase it - the Code reads differently than the Instructions).