Calculating household income for Covered California is a key step in unlocking affordable health insurance for you and your family. If you don’t calculate it correctly, you might miss out on valuable financial help like tax credits or even pay penalties later. With the 2025 Covered California open enrollment underway, there’s no better time to get it right. That’s where Skyline Benefit comes in—we make the process simple and stress-free, helping you figure out the income details so you can focus on getting the health coverage you need.
What Is Household Income?
Your household income for Covered California is the total income earned by everyone in your household. This includes:
- Yourself: The primary applicant.
- Your spouse or domestic partner: If you’re married or in a partnership.
- Your dependents: Children under 19, full-time students under 24, or anyone you claim on your tax return.
All income sources count, including:
- Wages, salaries, bonuses, and commissions.
- Rental income, interest, and dividends.
- Social Security benefits and pensions.
- Unemployment benefits, alimony, and child support.
The key number Covered California uses to assess eligibility is Modified Adjusted Gross Income (MAGI).
How to Calculate Household Income for Covered California
1. Identify Who Is in Your Household
Your household includes you, your spouse or partner, and any dependents you claim on your taxes. If someone in your household earns income above the tax filing threshold, you need to include it in your calculation.
2. Add All Income Sources
List all the income for each household member, including wages, Social Security benefits, rental income, and other sources. If you file taxes jointly, include your spouse or partner’s income too.
3. Calculate Your MAGI
To find your Modified Adjusted Gross Income (MAGI):
- Start with your Adjusted Gross Income (AGI) from your latest tax return.
- Add back any non-taxable Social Security income, tax-exempt interest, or excluded foreign income.
This is the income figure Covered California uses to determine if you qualify for financial help.
4. Check Your Eligibility for Financial Assistance
If your household income for Covered California falls within the eligible range, you could get help like:
- Premium Tax Credits: Reduce your monthly health insurance payments.
- Cost-Sharing Reductions: Lower your out-of-pocket expenses, like deductibles and copays.
Why Accurate Income Reporting Matters
If you don’t report your income accurately, you could:
- Owe money later: Overestimating income could mean repaying subsidies at tax time.
- Miss out on help: Underestimating income might make you ineligible for Medi-Cal or other aid.
Always report income changes within 30 days to avoid surprises.
How Skyline Benefit Helps with Household Income Calculations
At Skyline Benefit, we know calculating your household income for Covered California can be tricky. That’s why we:
- Simplify the process: We guide you step by step so nothing is missed.
- Maximize your savings: Our experts help you qualify for the most financial aid possible.
- Provide ongoing support: From calculating income to completing enrollment, we’re with you every step of the way.
Need Help Calculating your Household Income for Covered California in 2025?
Skyline Benefit is a certified insurance agency with Covered California. Act now and get the premium subsidy and coverage that you deserve.
Our agents can review your medical needs and budget, and tailor your health insurance options during Covered California Open Enrollment.
Schedule a consultation today. Call us at: (714) 888-5112