Question: I have a client who is earning a relatively small income and has a disabled spouse who is collecting disability income. When looking at this situation, is the income he receives from his disability payments considered part of their annual income?

Answer: To the extent that the disability income is taxed, that portion is added to the spouses income for total household income. The 2-person household income dictates the subsidy amount for the able-bodied spouse even though the disabled spouse is not enrolling in Covered California.