Tax credits are available for individuals and families who meet certain income requirements and do not have access to affordable health insurance through their employer or another government program.
Eligibility for tax credits is based on a standard, called the “federal poverty level,” that looks at the family income and the number of people in the family. The size of the tax credit is based on a sliding scale, with those who make less money getting a larger financial support to lower the cost of their insurance coverage.
Individuals and families who make between 138 percent and 400 percent of the federal poverty level may be eligible for a tax credit. This means that an individual making up to $44,680 and a family of four earning up to $92,200 may be eligible for a tax credit.
Tax credits lower the cost of your premium. Tax credits reduce the amount of the premium you will pay for insurance
Tax credits help low- and middle-income individuals and families. Tax credits are available to individuals and families who meet certain income requirements.
Tax credits can be used when you enroll. Tax credits can be applied to the cost of your health plan when you enroll – you do not need to wait until you file a tax return at the end of the year.
Tax credits are only available through Covered California. You must enroll in a health plan through Covered California if you want to use your tax credits.
Tax credits are paid directly to your health plan. These tax credits are paid by Covered California to your health plan to keep your costs low.
Tax credits will be adjusted at the end of the year based on your actual income. At the end of the year, the tax credits may be adjusted if your income is different than you anticipated. This means that you will want to notify Covered California if your income changes.
The amount of the tax credit depends on household income and family size of eligible individuals. Below are some examples of potential costs to families in California. Covered California will make available the exact premium and plan choices so you can know exactly what your insurance will cost.
|Household Size||Annual Income||Yearly Cost of Health Insurance (without government subsidy)||Yearly Federal Government Subsidy||New, Lower Cost of Health Insurance|
|4||$31,900||$12,300||$11,100||$1,200 ($100 per month)|
|4||$88,800||$12,300||$3,900||$8,400 ($700 per month)|
|1||$27,000||$4,548||$2,460||$2,100 ($175 per month)|
The tax credits are available when you buy insurance so you do not have to pay all of the premium costs up front and wait for reimbursement. The tax credits will be available to all people who are eligible for them, whether they file taxes or not.
The credits are only available for health insurance purchased through Covered California and will be paid directly to your private health plan by Covered California..