Does a Disabled Adult Child’s Income Affect Your ACA Eligibility?

If you’re over 60 and have a disabled adult child living with you, you may wonder how their income affects your eligibility for Affordable Care Act (ACA) health insurance. Here’s what you need to know:

Understanding ACA and Household Income

The ACA, often referred to as “Obamacare,” bases health insurance eligibility and premiums on household income. This means that the income of everyone in your household, including dependents and non-dependents, is considered when determining your eligibility and the cost of your plan.

Disabled Adult Child’s Income

In general, a disabled adult child’s income from Social Security Disability Insurance (SSDI) is counted as part of the household income when calculating ACA eligibility. This is because SSDI income is considered taxable income by the IRS.

However, there are some exceptions:

If the disabled adult child is not required to file a federal tax return due to their income being below the IRS filing threshold, their SSDI income will not be included in the household income calculation.
If the disabled adult child is claimed as a tax dependent on someone else’s tax return, their SSDI income may not be included in the household income calculation.

Impact on ACA Eligibility and Premiums

If a disabled adult child’s income counts towards your household income, it can affect your ACA eligibility and premiums. A higher household income may make you ineligible for premium tax credits, which help to lower the cost of health insurance.

What to Do

If you have a disabled adult child living with you, it’s important to consider their income when applying for ACA health insurance. To determine how their income affects your eligibility, you should:

Contact a licensed health insurance agent for assistance.
Review the ACA guidelines carefully or visit HealthCare.gov for more information.
If necessary, consult with a CPA to determine if your child’s SSDI income is considered taxable income.

Understanding the impact of a disabled adult child’s income on ACA eligibility can help you make informed decisions about your health insurance coverage.