Do unemployment benefits
count get added -to MAGI Income
for Covered CA and Medi-Cal qualification?

The American Rescue Plan ARPA extends expanded unemployment benefits with a supplemental weekly payment of $300 through September 6, 2021. These supplemental UIB payments are counted as income for determining eligibility for Covered California programs but are not counted as income for determining eligibility for Medi-Cal programs (including both MAGI and non-MAGI programs). Covered CA  CARES Act webpage. * ARPA Broker FAQ *

For 2020 if your adjusted gross income is less than $150,000, up to $10,200 of unemployment compensation is excluded from gross income. IRS Publication 525 *

Income vs Expense Deductions – how it might mess you up for subsidies – visit Insure Me Kevin.com to learn more.

Federal Unemployment ends Labor Day Weekend 2021 NBC.com *  More detail and alternate plans like  Medi Cal, Covered CA subsidies, Cal Fresh, Find a Job Los Angeles Times

 

IRS Taxable & Non Taxable –  Unemployment Benefits Publication 525

Unemployment Benefits

The tax treatment of unemployment benefits you receive depends on the type of program paying the benefits.

 

Unemployment compensation.

Generally, you must include in income all unemployment compensation you receive. You should receive a Form 1099-G showing in box 1 the total unemployment compensation paid to you. In most cases, you enter unemployment compensation on Schedule 1 (Form 1040), line 7.

Exclusion from income tax on a portion of unemployment compensation for 2020.

For individuals with adjusted gross income of less than $150,000, up to $10,200 of unemployment compensation is excluded from gross income. In the case of a joint return, up to $10,200 received by each spouse is excluded. (See P.L. 117–2 and section 85(c).)

 

Our Webpage on  if SDI State Disability Benefits are Taxable?

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