Tax Filing Household

For the purposes of APTC, CSR and QHP, each filing status listed below determines if the household is eligible for a tax credit and who is included in the household premium calculation.

Non-filers may select a QHP at full cost; however, because they do not file taxes they are not eligible for APTC or CSR. For mixed household information with APTC and MC clients,

DO NOT CHANGE THE TAX FILING INFORMATION WITHOUT THE CLIENT'S PERMISSION. DO NOT GIVE THE CLIENT ADVICE ON HOW TO FILE THEIR TAXES.

Entries in CalSAWS and Covered CA directly affect the client's tax information; entering information incorrectly may lead to discrepancies when they file taxes causing penalties, underpayments and/or overpayments. The tax filing household should be entered exactly as the client reports or as stated on their application.

Single

For the purposes of APTC, CSR and QHP, if a person files taxes as Single they are counted in a tax household of one.

Example Example Xavier lives in the same home with his 21 year old child, Natalia. Xavier files Single. Natalia files Single. Xavier and Natalia will require separate CalSAWS cases because they are each primary tax filers in their own cases. 

Head of Household

For the purposes of APTC, CSR and QHP, tax filers that claim dependents (qualifying relatives or qualifying children), may claim Head of Household on their taxes. In this case the tax filing household includes the tax filer and all other individuals whom the tax filer expects to claim as tax dependents.

Example Example Sydney is a single mother with four children, she claims two on her taxes and the non-custodial parent outside of the home claims the other two as dependents. For APTC, Sydney's household size is 3. 

Married Exception

Some people who are married but do not file taxes with their spouse are eligible for APTC if they qualify and file as Head of Household. A married person is considered "unmarried" and is eligible to file as Head of Household if he/she can answer YES to each of the following questions:

• Will you file taxes separately from your spouse?
• Will you live apart from your spouse from July 1 to Dec. 31?
• Will you pay more than half of the cost of keeping up your home?
• Will your child, stepchild, or foster child (of any age) live with you for more than half the year?
• Will either you or the child's other parent claim the child as a dependent?

Note: If the answer is NO to any of the above questions, then the applicant cannot file as Head of Household under this exception.

ExampleExample 

Married Filing Jointly

For the purposes of APTC, CSR and QHP, the household for a married couple filing Married Filing Jointly includes the two spouses and all dependents.

Married Filing Separately

Applicants filing Married Filing Separately or who do not file taxes are ineligible for APTC (with few exceptions). There are three (3) exceptions when married individuals filing separately may be eligible for a tax credit:

• Victims of domestic violence
• Abandoned spouses
  • Living apart from spouse
  • Unable to locate spouse after diligent search
• Head of Household

Covered CA Tax Filing Household Examples

Married Couple Filing Jointly with Common Children

Antonia and Chang are married and living together with their two children, Serena (15 years old) and Bao (9 years old). Antonia and Chang file taxes jointly and claim both children as tax dependents. The household income is over 266% FPL.

Household Composition

Chang is a tax filer.
Household size = 4 (self, spouse, and 2 dependents)

Antonia is a tax filer.
Household size = 4 (self, spouse, and 2 dependents)

Serena and Bao are tax dependents and do not meet any of the exceptions. Household size = 4 (same as the tax filer)

Who	Covered CA HH Size	Who is in the Tax HH	Tax Status or Dependent (i.e. Single, Head of HH, or dependent of mom, etc.)	Primary Tax Filer (Y/N)
Chang	4	Self (Chang), Antonia, Serena, Bao	Married Filing Jointly	Y
Antonia	4	Self (Antonia), Chang, Serena, Bao	Married Filing Jointly	N
Serena	4	Self (Serena), Antonia, Chang, Bao	Dependent of Chang or Antonia	N
Bao	4	Self (Bao), Antonia, Chang, Serena	Dependent of Chang or Antonia	N

Unmarried Parents with Common Child

Unmarried parents, Aksel and Freja, live together with their 1-year-old son, Steffen. Freja has income over 138% FPL and files as Single. Aksel files as Head of Household, claims Steffen as a tax dependent, and has income over 266% FPL.

Household Composition

Aksel is a tax filer.
Household size = 2 (self and 1 dependent)

Freja is a tax filer.
Household size = 1 (self)

Steffen is a tax dependent of Aksel. 
Household size = 2 (self and dad)

Who	Covered CA HH Size	Who is in the Tax HH	Tax Status or Dependent (i.e. Single, Head of HH, or dependent of mom, etc.)	Primary Tax Filer (Y/N)
Aksel	2	Self (Aksel) & Steffen	Head of Household	Y
Freja	1	Self (Freja)	Single	Y
Steffen	2	Self (Steffen) & Aksel	Dependent of Aksel	N

Non-custodial Parent Claims Child as a Tax Dependent

Ailani is a single mom living with her 6-year-old son, Sanyi. Sanyi's father, Michael, who is not in the home, claims Sanyi as a tax dependent. Michael claims no one else. Ailani files taxes as Single and has income over 138% FPL.

Household Composition

Ailani is a tax filer.
Household size = 1 (self)
 
Sanyi is a tax dependent of non-custodial parent and he is not eligible for Covered CA programs through the mom.

Who	Covered CA HH Size	Who is in the Tax HH	Tax Status or Dependent (i.e. Single, Head of HH, or dependent of mom, etc.)	Primary Tax Filer (Y/N)
Ailani	1	Self (Ailani)	Single	Y
Sanyi	N/A	N/A	Dependent of Parent not in Home	N

Related Topics

Affordable Care Act

Tax Filing Threshold