Do my grandkids qualify as dependents?

I get this question a lot – “can I put my grandkids on my insurance?”

Most of the time the answer is no, but there are certain circumstances in which grandkids can be placed on your policy as a dependent. Let’s explore.

The ACA (link here) talks many times about ‘dependents’ as being defined in Section 152. The ACA is referring to Section 152 of the IRS Tax Code (link here). When looking at section 152(b)(c)(1),  which talks about a ‘qualifying child’, it describes a few criteria, one of which has a relationship definition. That relationship definition is:

  1. a child of the taxpayer or a descendant of such a child

So…a qualifying child can be a descendant (i.e. grandkid) of a child (i.e. son/daughter) as long as the other criteria are met. So let’s look at those ‘other criteria’ as defined by Section 152 of the IRS Tax Code.

The term ‘‘qualifying child’’ means, with respect to any taxpayer for any taxable year, an individual:

  • (A) who bears a relationship to the taxpayer described in paragraph (2)
    • paragraph 2 states: for purposes of paragraph (1)(A), an individual bears a relationship to the taxpayer described in this paragraph if such individual is—(A) a child of the taxpayer or a descendant of such a child, or (B) a brother, sister, stepbrother, or stepsister of the taxpayer or a descendant of any such relative.
  • (B) who has the same principal place of abode as the taxpayer for more than one-half of such taxable year
  • (C) who meets the age requirements of paragraph (3)
    • paragraph 3 states: (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.
  • (D) who has not provided over one-half of such individual’s own support for the calendar year in which the taxable year of the taxpayer begins, and
  • (E) who has not filed a joint return (other than only for a claim of refund) with the individual’s spouse under section 6013 for the taxable year beginning in the calendar year in which the taxable year of the taxpayer begins.

In short, it IS possible to have your grandkids on your health insurance plan as a dependent.

Make sense? If not, give us a call and we will help you understand the best way to obtain coverage for your loved ones.

Sapper Insurance, 360-519-6990

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