Individual & Family
Group health
Medicare Supplement

Best rates GUARANTEED

Free Assistance 800-320-6269

California health insurance  -  Covered California Questions  -  self-employment income

Do I Use My Business Or Personal Income?

We are getting lots of questions on this topic and the difference can result in either qualifying for potentially large subsidies or not. It's very important for self-employed individuals that they isolate the correct income data for establishing eligibility. Let's look at which income you should consider.

The Income Eligibility for Health Subsidies

California health insurance ratesFirst, let's look at the relationship between income and subsidy. Assuming that you meet other requirements (citizenship, residency, etc), your ability to get health subsidy is tied to your best estimate for current year's Modified Adjusted Gross income (roughly line 37 on the 1040) being between 138% and 400% of the Federal Poverty Level. Below 138%, you may qualify for Medi-Cal.

Self-Employed income and health subsidies

Where we keep seeing an issue is that people are estimating income based on their self-employed or business gross income and not their personal.

Let's look at an example:

Sally is self-employed and files a Schedule C (sole proprietor) for taxes. She estimates her gross business income to be $60K. This figure, however, does not take into account business expenses which she estimates to be $30K. Many people like Sally are estimating their gross income as the business income of $60K which would put them out of the range of a subsidy for a single person ($46K). The key here is to look at your 1040 from last year. Line 37 at the very bottom of page 1 lists your Adjustment Gross Income which for most people (who don't have foreign income, SS benefits, and tax-free interest, etc) will be the number to look at. As you look up the 1040, your NET business income (gross business income minus eligible business expenses) is what falls into your gross personal income. We want the personal. In the case of Sally, the $30K ($60K gross estimated business income minus the $30K business expense) is the figure to consider and the $30K personal income may allow her to qualify for a subsidy.

Important Considerations on Income Estimation

To qualify for a health subsidy, we are providing our best estimate for current gross personal income. Obviously, things change for many people during the course of a year. You will be able to change data in the system as it happens and must do this. Keep in mind that if you receive an Advanced Tax Credit (reducing your monthly premium) that you are not eligible for after completing taxes in April, you may have to pay back a portion or all of the advanced tax credit. You obviously want to avoid this scenario so be conservative in estimating your income but make sure you use the personal income if self-employed. Again, your most recent 1040 is your best template to run this calculation. The system will actually ask you for current income streams ($20 hourly x 30 hours a week at Tex's Crab Shack, etc) but the self-employed's income and tax situation can be but more complicated.

You can run your Health Quote here to view rates and plans side by side from the major carriers...Free.

Again, there is absolutely no cost to you for our services.  Call 800-320-6269 Today!

YOU MAY STILL BE
ABLE TO ENROLL

In just 15 minutes:

  • - Get the most tax credit available
  • - Find the best plan for your needs
  • - Enroll right over the phone!




Call 800-320-6269

Our Services are FREE to You!

Need Help
With Existing Account

We can help you:

  • -Get required docs to covered Ca.
  • -Make changes to income and other info
  • -Choose and finalize plan enrollment
  • -Make sure you get right tax credit
  • -Payment/membership issues with carriers

Call to Enroll over the Phone in 15 Minutes

If Your Income
Is In This Range

Current Years Estimate; All those that file together on one 1040:


Single Person: $16k - $47k
2 People $22k - $64k
3 People $27k - $80k
4 People $33k - $97k

Call 800-320-6269
Anthem Blue Cross California
Blue Shield of California under Covered California
Kaiser of California
Health Net of California
Aetna
and more
Thousands of Californians
Hundreds of California Companies
SUCCESSFULLY
ENROLLED
Thousands of Californians
Hundreds of California Companies

from SC

"My sincere thanks for making a miracle happen- 2014 health insurance !! Many thanks for your expertise and advice yesterday !!"

from SD

"Thanks again for your help - I had absolutely no idea how to get this done when I got up this morning. You've made it remarkably easier than I expected. I hope you're not stuck at the office all night..."

from KV

"Anyway, I hope you got some time off this past week! Thank you again for your help and efforts on my behalf! I was very lucky to find you."

from EK

"I thank you very much for the time that you have invested in handling everything

from SR

"I truly appreciate the quick response and will think of you in the future if I need to make any changes to my insurance plans."

from VH

"You are awesome... takes a huge worry off my back, thank you for your kind. thanks for your time and kindness. !!"

from SA

"Wow, I can't thank you guys enough for your help...I couldn't imagine trying to tackle this on my own!"

from LM

"You are my new best friend. A HUGE thank you again.

SUCCESSFULLY
ENROLLED
Find out what customers are saying about our services
About Calhealth.net

20 years of experience in the California health insurance market has taught us one thing...Competent and experienced guidance is Invaluable

We can quickly (very important) size up your health insurance needs and clearly explain the options available to you. Our focus is finding the most coverage at the best cost to you.

We are licensed Covered Ca agents with in-depth knowledge of their plans, process, and tax credits.

Call us...you will be Pleasantly Surprised.  800-320-6269

Request a 10 Minute Health Plan Check-up

We'll quickly see if you have the best priced plan available and if you qualify for a tax credit

800-320-6269
calhealth website

Our Services are FREE to You

Calhealth.net is a Goodacre Insurance Services Website

This website is owned and operated by Goodacre Insurance Services, which is solely responsible for its content. This site is not maintained by or associated with Covered California, and Covered California bears no responsibility for its content. The email address and phone numbers that appear throughout the site belong to Goodacre Insurance Services, and cannot be used to contact Covered California.