Does Child Support Count as Income for Covered California?

No. Child support received does not count as income when Covered California determines eligibility for financial help.

• Child support received is not taxable income.
• Child support paid is not deductible by the person making the payments.
• Paying child support does not reduce your Covered California MAGI income.
• Receiving child support does not increase your Covered California MAGI income.
• Covered California specifically lists child support as income that does not count. The IRS also explains that child support is not taxable to the recipient and is not deductible by the payer.

Important: Child support and alimony are not treated the same. Alimony may count as income when it is paid under certain divorce or separation agreements completed before January 1, 2019.

Which Parent Includes the Child in Their Covered California Household?

Covered California financial assistance is generally based on your expected tax household for the coverage year. A household usually includes:

• The person filing the tax return.
• The tax filer’s spouse, when applicable.
• Children and other people the tax filer expects to claim as tax dependents.

For most subsidy calculations, a child is generally included in the household of the parent who expects to properly claim the child as a tax dependent. The child does not automatically belong in a parent’s Covered California household merely because that parent:

• Pays child support.
• Receives child support.
• Has physical custody for part of the year.
• Provides the child’s health insurance.

Covered California explains that a household includes the tax filer, spouse and tax dependents. Special federal tax rules may apply when parents are divorced, separated or living apart.

When the parents disagree about who may properly claim the child, consult a qualified tax professional. An insurance agent cannot decide which parent is legally entitled to claim a tax dependent.

Does the Child Tax Credit Count as Covered California Income?

No. The federal Child Tax Credit does not count as income for Covered California.

• A tax credit may reduce the federal income tax you owe.
• It does not ordinarily reduce the MAGI income entered on your Covered California application.
• You do not need a separate Child Tax Credit page merely to explain Covered California eligibility.

See Covered California’s official list of income that counts and income that does not count.

What if Employer Health Insurance Is Available?

Child support still does not count as income, but available employer health insurance may affect whether a parent or child qualifies for Covered California financial assistance.

• Employer coverage must satisfy affordability and minimum-value rules.
• The affordability percentage for 2026 is 9.96% of household income.
• Affordability may be evaluated differently for the employee and for family members offered dependent coverage.
• A child may qualify for Covered California financial help even when the employee’s own job-based coverage is considered affordable.
• Depending on household income and the child’s age, the child may qualify for Medi-Cal instead.

Read Steve’s explanation of the Covered California Family Glitch and employer affordability rules. Covered California also provides an official job-based insurance affordability explanation and calculator.

Do not assume that everyone in a family must enroll in the same health plan. In some situations, the employee remains on employer coverage while a spouse or children enroll through Covered California or Medi-Cal.

Need Health Coverage for Yourself or Your Children?

Before estimating Covered California financial help, gather:

• Your expected annual household income.
• The names of the people who will file the tax return.
• The children or other dependents expected to be claimed.
• Information about employer coverage available to each household member.
• Any court order requiring a parent to provide health insurance.

Steve can help you compare Covered California, child-only and direct individual health plans. There is no additional charge to appoint Steve Shorr as your Covered California Certified Insurance Agent.

See Plans, Premiums and Estimated Subsidies

Email [email protected] | Appoint Steve as Your Covered California Agent

Independent licensed California insurance agent. No obligation.

What if a Court Order Requires Health Insurance for the Child?

A California child-support order may require either or both parents to maintain health insurance for a supported child when coverage is available at no cost or at a reasonable cost.

• Health insurance can include medical, dental and vision coverage.
• Cost is generally presumed reasonable when the additional cost to the responsible parent does not exceed 5% of that parent’s gross income.
• The additional cost generally means the difference between self-only coverage and coverage that includes the child.
• An employer may be ordered to enroll the child in an available group health plan.
• The wording of the actual court order controls.

Read more on Steve’s separate page about court-ordered health insurance for a child in California.

Steve can help compare employer, Covered California and direct individual health-plan options. Questions about interpreting, enforcing or changing the court order must be handled by the court, a family-law attorney or the local child-support agency.