Client (joint filing) told Covered CA that he was including his 26- and 24-year old son and daughter on his return, so Covered CA dutifully issued a policy for all four. The two kids file their own returns because their income is well north of $4,250 ($16k and $27k). The kids live at home and, arguably, the parents provide more than half their support (at least for the lower income one).

Do we include the kids' MAGI for purposes of calculating the Premium Assistance Subsidy (PAS) on Form 3849?

If we include the kids' income, the parents get no PAS. If we do NOT include the kids' income, they get a $13,000 PAS. If we include the lower income kid only, their PAS is $10,000. This is without allocating any of the premiums to the kids.

We have spent two hours going through the fed and state instructions and pubs and, as you can see, got nowhere. The instructions and pubs are byzantine.

PASs are a PIA.