How does one answer the

Income – Expense Deductions Questions

on the Covered CA application?

Projected MAGI Modified Adjusted Gross income Line 37* is a VERY key question.  That’s the number one uses to get subsides.  See the button below to get your no obligation quote and subsidy calculation. 

IMHO, it’s best just to figure out your Projected MAGI Modified Adjusted Gross income Line 37* 8 b and put that number in.  It gets IMHO waaay too confusing to put in every line item of your Tax Return into the Covered CA website.  This page was originally written when Paper Applications were more common.  Everything now is ONLINE with Covered CA.

Instructions for Completing Income Estimation Questions

9.15.2017 Instructions

Income Section Job Aid
Income Section Job Aid

Call us 310.519.1335 and we can expedite  your application over the phone in about 15 minutes.  Email [email protected]om or call us 310.519.1335 if you have any questions.

We will ask that you appoint us as your Covered CA agent, at NO extra charge to you, so that we can get compensated for our time.

IRS 1040 Instructions
Itemized Deductions Schedule A

Publication 519 US Tax Guide 1040 for Aliens

In a lot of ways, IMHO it’s just easier to estimate what will be on Line 37* of your Tax Return and put that number down, rather than get bogged down with a million questions on the Covered CA site to get to the same spot.


Line 37 Adjusted Gross Income
Line 37 Adjusted Gross Income

We are talking about an ADVANCE Premium Tax Credit that you can take now, so that the Federal Government pays the credit to the Insurance Company and you only have to pay the lower amount.

When you do your  taxes it will truly be calculated then, just like a w-4 for withholding deductions now.

Historical Information from Paper Application

What Covered CA is really looking for is MAGI – Modified —  Adjusted Gross Income from your projected tax return.



  Self Employed – 1099self.employed


  IRS.Gov  Schedule C and Instructions
schedule.c.income.expense is all about figuring your 2014 taxes and the Credit that you will get for having a Qualified Health Plan in force as mandated by law.  The screen shot on the left is from the Covered CA Application and the one on the right is from the 2012 1040 form (Instructions).  Even if you don’t owe taxes, you can still get the credit.  FAQ’s






income.deduction add.income icome

For a full analysis it’s imperative that you view our other pages on the Advance Premium Tax Credit and check with competent legal and tax professionals.  If you would like to talk to a professional tax advisor about this try Bruce Bialosky [email protected]  310.273.8250


If you change eligibility for Advance Premium Tax Credits or Cost Sharing Reductions (Silver 94 – 73)   then you get a new special enrollment period to change plans and don’t have to wait till next year.  Agent training page 9  

Please note, that Covered CA appears to no longer accept the paper application.  The ONLINE application is easier, BUT they still need to verify to give you tax credits.

Report Changes as they happen # 5152
Our webpage on reporting changes 

Report Changes as they happen

Changes should be reported within 30 days. Here’s instructions.  If you’ve appointed us – instructions – as your broker, no extra charge, we can do it for you. 

Video Importance of Reporting Changes – Covered CA Video

IRS Video


Denial of benefits and possible criminal charges if you don’t report changes in income!  

2 comments on “Questions? on Income Covered CA Application

  1. What happens if I overstated my income.

    I’m self employed and my month to month income is not consistent.

    I’ve been covered with a PPO using APTC Advance Premium Tax Credit – subsidy for 2014-16.

    The first two years I made less than $5K and in 2016 I had no income at all. I’ve been borrowing to pay premiums.

    Each year I’ve “projected” approx $18K income partially to prevent falling into the Medi-Cal zone and I also naturally expected to do much better financially.

    CoveredCA has extended my coverage but they need to see evidence by March when checking with the IRS that all years have been filed. I’m just now filing my returns.

    Will I be able to keep my PPO the APTC for this year (2017) and how will the IRS and CoveredCA interpret all this?

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