I applied for Covered California for the last 3 months of last year, and based on my current monthly salary I got a monthly $1,000 Federal Subsidy on my coverage, which was nice.
(Un)fortunately, I got a surprise large year end bonus, which, according to my tax filing, kicked me out of the financial qualifications for a Subsidy, and I had to repay $3,000 in my taxes to pay back the subsidy.
So now I’m wondering what to do this year-I don’t know if I’ll get a bonus (probably not? But, who knows?) Meanwhile, I’m already getting the $1,000 monthly Federal Subsidy for this year, but if I get a bonus again, I’d have to pay back $12,000 in my taxes?
Covered California told me that if I’m submitting monthly proof of my income, then the Federal Subsidy is fine (“but talk to a tax expert”), then if I get a bonus, just report that my income has changed in December. But does the Federal Subsidy work on a monthly basis, or are they based on a yearly income?
TL;DR
1) Can I get 11 months of Federal Subsidy coverage based on my monthly low salary, and then if I get a bonus in December pay the insurance for just December without Federal Subsidy?
Or if my total yearly salary goes over the yearly limit, I will not be eligible for any subsidies all year (even though for 11 months I was eligible?)
submitted by /u/enoughbutter
[link] [comments]I applied for Covered California for the last 3 months of last year, and based on my current monthly salary I got a monthly $1,000 Federal Subsidy on my coverage, which was nice. (Un)fortunately, I got a surprise large year end bonus, which, according to my tax filing, kicked me out of the financial qualifications for a Subsidy, and I had to repay $3,000 in my taxes to pay back the subsidy. So now I’m wondering what to do this year-I don’t know if I’ll get a bonus (probably not? But, who knows?) Meanwhile, I’m already getting the $1,000 monthly Federal Subsidy for this year, but if I get a bonus again, I’d have to pay back $12,000 in my taxes? Covered California told me that if I’m submitting monthly proof of my income, then the Federal Subsidy is fine (“but talk to a tax expert”), then if I get a bonus, just report that my income has changed in December. But does the Federal Subsidy work on a monthly basis, or are they based on a yearly income? TL;DR 1) Can I get 11 months of Federal Subsidy coverage based on my monthly low salary, and then if I get a bonus in December pay the insurance for just December without Federal Subsidy? Or if my total yearly salary goes over the yearly limit, I will not be eligible for any subsidies all year (even though for 11 months I was eligible?) submitted by /u/enoughbutter [link] [comments]Read Morer/HealthInsurance