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Covered California and Obamacare related questions from consumers, employers and agents are answered by Phil Daigle with the best information available at the time. Archived entries may no longer be accurate as the Covered California and Obamacare knowledge-base is evolving quickly. TO REQUEST A PERSONAL RESPONSE INCLUDE EMAIL ADDRESS.

Unexpected Tax Consequences?

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Question: We are husband and wife with $66,776 AGI. We are covered by Chinese Community health Insurance with monthly premiums of $1,629.79 and have a monthly advance payment premium tax credit totaling to $14,800. Now, this is what we owe the IRS. How are we being helped if at the end of the year we owe the IRS this much. Please help.

Answer: ​With an AGI of $66,776 for a 2-person household, you are not eligible for any premium assistance. That is why you have to repay all the the advance premium tax credits you received for the year. Apparently you claimed a lower income on your Covered California application in the first place. To correct this, you must notify Covered California of your actual income.


Sarah …

For whatever reason, CoveredCA has decided not to post copies of Form 1095-A online for 2015, as they did for 2014. But if they paid even one month’s APTC, there would be a Form 1095-A generated for you and they can email or snail mail it to you. Whoever told you they don’t have a Form 1095-A for you was probably wrong. You should try calling CoveredCA again, but if that doesn’t work, check my website for my phone numbers and give me a call and I’ll see if there is something I can do for you.

Just another example of the Consumer-Unfriendly aspect of CoveredCA, now in its third year of operation.

Max, I did not receive Form 1095-A in the mail. The Covered California website says that the form is available online, but after following instructions from numerous sources, I still cannot find the form online. I called Covered California, and they said I did not need the form, but I received a letter from the IRS requesting form 1095-A. Please let me know how I can access it. Thank you,

Catherine …

I assume you are a single person because you don’t mention any dependents. As such, if your Modified Adjusted Gross income is below 400% of the 2015 Federal Poverty Line ($47,080), the most you would be required to repay is $1250. If your MAGI is over 400% FPL, then you must repay all of the APTCs paid to your health insurance company in 2015.

You could have to repay more than the limitation if you claimed dependents who were not lawfully present in the US, but in no case would you be required to pay more than 100% of the tax credits received.

I don’t have a personal URL. But, I will ask a question, please, to see if I get a replay. Thank you, in advance: I received ObamaCare /Medical CoveredCa in 2015. I did not report an increase in my income in time to be input for the 2015 tax year. When filing my taxes, therefore, this year, for 2015, I am seeing an unprecedented high $$$ for ‘tax reconciliation’ penalty’ This is much higher then the on-line matrix from the Federal Government relating to the FPL calculations. There is a large discrepancy between their ‘tax reconciliation’ figures against the 8962 calculations filed by my tax person. How do I get an accurate figure, from a reliable source; to confirm my exact calculations, what I owe for ‘tax reconciliation’? Urgently, need a lead or advise, please. Thank you, again, for any leads, most sincerely, Catherien

Linda B …

Please contact me directly for guidance.


My Covered Calif/Anthem policy was cancelled and I was told it had something to do with Medi Cal glitch even though I have never signed up for Medi Cal. I called my insurance company several times and no one knew why this had happened but they admitted it was a mistake (I still don’t have coverage though) I recently saw a TV news story about insurance plans cancelled by mistake because of Medi Cal. I cannot find any info online. Can you provide some information?

The real “problem” is that you, like millions of other Americans, believed the politicians who promised you that health insurance would be “affordable,” that you would be able to keep the insurance you had if you liked it, and that the cost of health insurance would drop by 25%. So far, exactly NONE of those campaign and post-inauguration statements has come true.

The only true “affordability” has gone to those low-/no-income persons between ages 19 and 64 who were prevented from enrolling in Medi-Cal prior to 2014. Now most have $0 premium health insurance of a sort, paid for by you and me and other taxpayers. In a few years taxpayers will have to start paying for the billions of dollars being doled out in the form of premium tax credits.

The good news is this: when California enacts the $15/hour “living” minimum wage law, it will result in hundreds of thousands of persons being dropped from Medi-Cal and forced to pay for health insurance, which they won’t be able to afford with their new higher wages.

So much for the prospect of lifetime employment working in a fast food restaurant rather than learning the skills necessary to be gainfully employed..

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