Speak with a Covered California certified agent! Call (888) 413-3164 or Shop Online Now

Shop and Compare

California Health Insurance Plans and Rates

It's easy. Just enter your zip code.

Covered California Q&A

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.

Potential Tax Penalty for Understating Income?

By on | No Comments

Question: My wife and I currently both have the Blue Cross Enhanced Silver 87 plan that we pay $129 a month for based on 2016 projected earnings of $30,130. What is the penalty for us if our earnings would be say $33,000 for 2016? If we exceed by $100 is the penalty the same as if we exceed by $1000?

Answer: First of all, there is no "penalty" for unexpected fluctuations in annual income. If you received more premium assistance than you were entitled to based on your income, the IRS will make the adjustment retroactively on your tax return for that year. The premium assistance due for an income of $33,000 versus $30,130 would be about $400 less for the year. You would pay that back through an additional $400 in federal income tax.

Leave a comment

Do You Have California Health Insurance Questions?

Ask An Expert

View Previous Questions
Call Us at (888) 413-3164

© 2022 California Health Benefit Advisers, LLC
Home / About / Start Shopping / Ask a Question

“Covered California,” “California Health Benefit Exchange”, and the Covered California Logo are registered trademarks or service marks of Covered California, in the United States. This web site is owned and maintained by California Health Benefit Advisers, LLC, which is solely responsible for its content.