Question: My wife and I are both self employed. We really have no idea of what our income will be in 2014. We based our application on our 2012 return; that all we can really do. Do they look at your returns each year and then adjust? Or send a bill? I am very worried about getting a large bill for a year past, that could break us. P.S. Our insurance costs have doubled from last year, for basically the same coverage. I am not a fan of Obamacare.
Answer: Covered California has access to your 2012 AGI from the IRS data hub. However, it is only a benchmark. If you feel that your 2014 income will be substantially more or less, use your 2014 estimate instead. To avoid the possibility of a big tax bill at the end of the year, you can choose to take only a percentage of your tax credit as a monthly advance. This step is in the online application just before selecting a health plan, if ignored it defaults to 100% advance tax credit monthly.