Question: In 2014 my girlfriend became pregnant with my child. At the time of her pregnancy in 2014, we were living separately and she was on Medi-Cal. During 2015, she gave birth to our child and we moved in together. All the healthcare expenses (prenatal, delivery, postnatal, vaccinations, well-child visits) for her and our child for 2015 have been covered up to this point by Medi-Cal. My AGI for 2015, looks like it will be around $30,000. At this AGI, our family does not qualify for Medi-Cal. If I claim my girlfriend and child as dependents on my 2015 tax return will I be subject to back payment of healthcare expenses for her and the child from 2015?
Answer: You can claim your wife and child as dependents for 2015. Doing so will not make you liable for asset recovery from the state. Your partner will no longer be eligible for Medi-Cal. You should apply for Covered California right now for a household of three for 2016. If your household income remains in the $30,000 range, you will receive a lot of premium assistance as well as enhanced benefits.