Question: My family of four is covered under Covered California with premium assistance for 2015. Our 21 yr old daughter did not complete enough school to be considered a full time student, so we cannot claim her for our 2015 tax return. She did work, and earned about $9000.00. Will we be penalized because she should have had her own health care plan (MediCal). Should she enroll for 2016 for her own plan before I take her off ours?
Answer: Single dependents must file a federal income tax return if their earned income is more than $6,100. So your daughter must file a tax return for 2015. She needs to create a Covered California application for her own 1-person household. Her income makes her eligible for Medi-Cal in 2016. You will need to update your Covered California account by removing her from your household. There are no penalties for either your daughter or yourself. If you received more premium assistance in 2015 than you were entitled to, you will pay some of it back to the IRS when you file your tax return for 2015.