What is it that Covered CA is doing by asking for Proof of Income?
What documents do they need?
First off, let’s get this clear, last years income is MEANINGLESS! Covered CA only asks for it, so that they can see that your income estimate for the upcoming year sounds reasonable. The income amounts get reconciled at the end of the year when you file your 1040 with MAGI Income on line 11 and form 8962 Premium Tax Credit verifying what you got in advance subsidies – that is Covered CA pays the subsidy monthly to the Insurance Company and what your current – upcoming tax year income really was. Take a look at the current – upcoming years FPL Federal Poverty Level Chart. We are NOT going by last year but the current or upcoming year! Did your end of the year income really match up to the estimates?
The best records are your most recent 1040 form. If you don’t have that, see the documents that are accepted by Covered CA to advance your subsidies. Again, note, that just because Covered CA approved you for advance subsides, does NOT mean that the IRS won’t make you give them back when you file your taxes. I’d say 90% of the time Covered CA does NOT ask for proof of income. They verify your income in the “Federal Hub.” If you are married, then you must include both incomes and file jointly.
Even if you don’t qualify for subsidies or Medi Cal, Covered CA may still ask for documents, just to make sure they are giving you all the benefits that you are entitled to under ACA/Obamacare, ARPA, etc. Also, you might not qualify now, but who knows, you might towards the end of the year, like under ARPA if you lost your high paying job and got 1 week of unemployment, then got another high paying job, you would still get Silver 94 for $1 for the rest of the year 2021! Silver costs more in Covered CA than outside…
Covered CA states that neither they nor authorized agents are allowed to give tax advice!
Contact Info for Medi Cal where you might be able to ask complex questions.
#Documents accepted as Proof Of Income
- Copy of last year’s federal tax return along with federal schedule E C. D, that accurately reflects current income
- Business records such as profit and loss statements
- Court papers
- Copy of checks
- Copy of pay stubs
- Sworn affidavit from absent parent
- Award letter or most recent cost-of-living increase notice
- Copy of the current benefit check
- Signed statement from the individual or organization providing the income
- Gift income letter Please check the entire website, our new page on gifts, tax and law professionals for what really is MAGI Income Line 37 of your tax return!
- Signed letter from employer that displays the gross income, payment frequency, and date of paycheck
- #Affidavit Covered CA Attestation of Income, No Documentation Available Actual Form Doesn’t require notarization
- Things on ACA, Obamacare, Trumpcare are confusing and conflicting – Here’s another opinion
- If it’s verified by a professional as indicated on Wikipedia then it should be acceptable Therefore, the affidavit must be notarized. The Covered CA verification team is located in the Main Service Center, to get a more definite answer, please reach out to them directly at 800/300-1506.
- Insure Me Kevin.com 3.29.2017
- Regardless, if your income estimate changes, you must report it within 30 days!
- No Perjury * Wikipedia * Shouse Law * Shouse Law Video *
- Things on ACA, Obamacare, Trumpcare are confusing and conflicting – Here’s another opinion
- Other documents to support Proof of Earned Income
- Investment account statement
- Payment records (notes and mortgages)
- Other documents to support Proof of Interest Income
- Covered CA Website – proof of income
Most of the time Covered CA and Medi-Cal don’t need your proof, they get it from Big Brother and the Federal Hub. They need your consent though. Check out this problem for January 2017 where Covered CA didn’t get consent.
Resources & Links
- Inflating Income to avoid Medi Cal?
- Covered CA Job Aid on Reporting Income
- CA Court Form for Income & Expenses FL 150
- Proving income without a 1099 or W-2?
- appoint us as your agent.
- complementary Instant quote & subsidy calculation engine
- Dependent Children can stay on parents coverage till age 26
- Disabled Children indefinitely
- Married people are mandated to file a joint return.
- MAGI vs Non-MAGI qualification for Medi Cal Page 5 My Medi Cal Brochure
10 days for Medi Cal 22 CCR § 50185
Our webpage on ARPA & Unemployment Benefits - Silver 94
- Our VIDEO on how to report changes to Covered CA
- Lost your job? How to keep your Health Insurance. Shelter at Home VIDEO
- References & Links
- Here's instructions, job aid, reporting change in income
- Our webpage on the exact definition of MAGI Income
- If you've appointed us - instructions - as your broker, no extra charge, we can do it for you.
- Voter Registration
- Denial of benefits and possible criminal charges if you don't report changes in income!
- Fudging Income?
- Western Poverty Law on reporting changes
- How to cancel coverage.
- Visit our webpage on how to report changes
- Our Quote Engine Takes all the complexity out of using pencil and paper to figure out the premiums per the Obamacare/ACA rules under CFR §1.36B-3 *
- Get more detail on the Individual & Family Carriers available in CA
No extra charge for complementary assistance
- Appoint us as your broker
- Get Instant Health Quotes, Subsidy Calculation & Enroll
- Videos on how great agents are
Calculate your Covered CA MAGI Income
take #Line8b 11 Adjusted Gross income then add line 2a, 6a & 8 (Foreign Income)
- 1040 IRS Annual Tax Form
- Schedule 1 Additional Income & Adjustments to Lower your MAGI Income
- Estimate next years MAGI Income?
- Get instant quotes, subsidy calculation and coverages
- NO ASSET TEST for MAGI based subsidies in Covered CA or MAGI Medi Cal Qualification. VIDEO
- Nor is there a lien against your estate for Covered CA or MAGI Medi Cal
For Medi-Cal, if the income information submitted by the individual is “reasonably compatible” with the information obtained through the electronic data sources, e.g., IRS, state wage data, unemployment, Social Security, Medi-Cal accepts the amount listed on the application.126 The two amounts are “reasonably compatible” for MediCal in any of the following circumstances:
• Both show the individual’s income above the relevant income standard;
• Both show the individual’s income is at or below the relevant income standard; or
• The individual states their income is above the income standard and the information obtained by the state shows the individual’s income is at or below the relevant income standard. 127 In this case, the individual must be told that the income information they provided was higher than the information the state obtained through electronic verification and the individual may request to have their income determined at the lower, verified amount.128
If the income information obtained through electronic verification is not reasonably compatible with the information provided by the individual, the individual must provide additional information that explains the discrepancy, such as pay stubs or other documentation regarding income. WIC 14013.3 *
For Covered California, income information is checked against an applicant’s previous year’s tax return through the IRS database.
On the other hand It’s said Covered CA can’t see your tax return Insured Me Kevin.com * Your Tax Return Is Not Linked To Your Covered California Account
If the applicant says that the income and tax household size on their last year’s tax return represents an accurate projection of their income and household size for the benefit year for which they are applying for coverage, Covered California uses that tax information.130 Covered California accepts self-attestation of income and household size if tax data is unavailable or the applicant attests that a change in income or household size has occurred or is reasonably expected to occur such that the tax data is not accurate for this benefit year.131 If, however, Covered California finds that the application’s attested income and household size are not reasonably compatible with other information from the applicant or information Covered California has other than the tax data, then the attestation will be verified against state electronic data sources. If state sources are unavailable, the applicant must submit documentation to support their attested income.132 There is an alternative verification process for individuals who attest to projected household income.133 If their projected income is no more than 10% below the income on their most recent tax return, it must be accepted without further verification. If the projected annual income is more than 10% below the latest tax income or if the tax data is unavailable, the applicant’s attested income is verified with state data sources or by requesting documentation from the applicant.134 When income cannot be verified electronically, Covered California notifies applicants of what information is needed and gives them 90 days to provide it.135 If the applicant does not provide the information within 90 days, Covered California uses the information available through electronic databases to determine their eligibility.136 For MCAP, if income cannot be electronically verified, paper documentation is requested. Page 5.206 *
Federal IRS #Form8962 Instructions Premium Tax Credit
Reconciliation Form attaches to 1040
Subsidy is IMHO hocus pocus - smoke & mirrors
it all comes out when you file taxes!
- Instructions for IRS Form #8962 Subsidy Reconcilation
- 1040 Instructions
- Overview FTB site
- Our webpage on Form 8962 - Premium Tax Credit Subsidy Reconciliation