Supporting a relative? Then pay their Obamacare penalty!

IRS ^ | 1/31/13 | self

[mrsmith]

Page 17

"...b. Liability for shared responsibility payment
i. Liability for dependents
Under section 5000A(b)(3)(A), if an individual with respect to whom the shared responsibility payment is imposed for a month is another individual's dependent (as defined in section 152) for the taxable year including that month, the other individual is liable for the shared responsibility payment for the dependent. The proposed regulations clarify that a taxpayer is liable for the shared responsibility payment imposed with respect to any individual for a month in a taxable year for which the taxpayer may claim a personal exemption deduction for the individual (that is, the dependent) for that taxable year. Whether the taxpayer actually claims the individual as a dependent for the taxable year does not affect the taxpayer's liability for the shared responsibility payment for the individual."

Paying over half of a relative's income means you must pay their IRS Obamacare penalty if they are a "Qualifying Relative" who makes less than $3,800 a year. They don't have to live with you.
Dependents: IRS Pub 501: http://www.irs.gov/publications/p501/ar02.html#en_US_2012_publink1000220868
See Table 5

Surprise!

[mrsmith]

It's printed in bold above, I'm surprised you missed it:

"Whether the taxpayer actually claims the individual as a dependent for the taxable year does not affect the taxpayer's liability for the shared responsibility payment for the individual"

[Cyber Liberty]

Sorry, I misread it.

[mrsmith]

If they make more than about 4 grand in the year it won’t apply.

I’m not a tax expert but I think you’re pretty safe.