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Mid-Year Income Change?

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Question: I estimated my income to be $24,000 for 2014 at the beginning of the year. As months are going by I am now estimmating it at $60,000. Should I make that change on my profile or wait?

Answer: That's a pretty significant change of income. It makes a big difference to your bottom line. If you are a single person, you're net premium now is about $150/mo at $24K annual income. At $60k, you are no longer eligible for a subsidy, so you pay the full premium based on your age and zip code - anywhere from $200 to $800 a month. If you don't bite the bullet now and pay the higher premium, you'll pay the difference in a lump on April 15, 2015 tax time.


I would just add that if you are self-employed, you might consider increasing your quarterly estimated tax payment now so that you aren’t hit with a tax bill you can’t pay in April.

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I have a client who lost his job and is now applying for coverage through Covered CA. We input his income so that his total 2014 household income showed the money he made year to date until he was let go on 7/31, plus the unemployment he will be getting, plus their rental income. Although their predicted 2014 household income (family of 5) was over $100,000 the system was showing the children as Medi-Cal eligible. I called CC and the rep told me that because the applicant lost his job on 7/31, CC only looks at his income going forward (rental income and unemployment) to compute eligibility for tax credits and Medi-Cal. Won’t that screw things up when the client files his 2014 taxes? Isn’t the tax credit based on his 2014 household income? If we use the CC rep’s logic, someone could make $200,000 the first half of the year, then lose his job and qualify for tax credits for the rest of the year.

Can I create another CoveredCa account?

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