Question: My dad is going to retire at the end of the year since he is turning 66. My mom is under his employer sponsored insurance. He will get Medicare and my mom would lose her insurance. Their income annually is ~90k but now that he is going to retire, their annual income will be about 36k. It would be from his social security and pension. My mom would still be 60 years old and taking care of my baby (her grandson). Would she qualify for covered California? We are confused if they will consider their previous years income or 2020's income which would be 36k. Please let us know.

Answer: Yes. Your mother will be eligible for Covered California coverage with significant premium assistance based on $36,000 annual income for a 2-person household. The only income that matters is their 2020 Adjusted Gross Income. If you use the $36,000 figure as an estimate and it turns out they actually have an AGI of $40,000, the IRS will take more tax to make up for the subsidy overpayment.