The ongoing Coronavirus pandemic has changed the way people live and work and also affected many of us negatively. If you have significant changes to your household income, it is important to let Covered California know as soon as possible.
You might be already receiving a significant advance premium tax credit (APTC) every month from the federal government. You need to keep track of your household income in case it changes during the year. When you signed up with Covered California, you have agreed to report any significant changes, such as an income, household, and address within 30 days.
Stimulus Payments from the IRS
In April 2020, qualified taxpayers began receiving stimulus payments of $1,200 per individual and $500 per each dependent child. These stimulus payments are NOT included in your taxable gross income for Covered California.
Pandemic & State Unemployment Benefits
All unemployment benefits (including the extra $600 per week Pandemic Unemployment Compensation payment) are included in your taxable gross income and MAGI for purposes of eligibility for financial help available through Covered California.
Impact of Income Changes
If your taxable income decreases, you could qualify for more APTC. This could lower the amount you pay in monthly premiums. You could also qualify to save on out-of-pocket costs, like deductibles and copayments. You might qualify for free or low-cost coverage through Medi-CAL or CHIP coverage.
If your estimated taxable income increases, you may qualify for less savings than you are getting now. If you do not report the household income changes soon, you may have to pay money back when you file your 2020 income taxes in 2021.
How to Report Income Changes
You can report a change on your Covered California online account by logging into your account and clicking on the “Report a Change” button.