Question: We didn't make any money besides on our rental properties. And I'm not sure if that would apply towards our income. Would there be a penalty if we were supposed to be in Medi-cal instead of Covered Ca plan?
Answer: Your net rental income after expenses is taxable and counts toward your adjusted gross income (Line 37 of Form 1040) which is what you report to Covered California. If your adjusted gross income makes you eligible for Medi-Cal, your Covered California coverage will be terminated, but there is no penalty.