Covered CA & Premium Tax Credit
August 22nd, 2025
Covered CA & Premium Tax Credit
What is Covered California?
Covered California is the state of California’s official health insurance marketplace created to assist citizens and legal residents with applying for health insurance coverage in order to comply with the Affordable Care Act (“ACA”).
If you don’t have health insurance through a job, Medicare, Medicaid, the Children’s Health Insurance Program (CHIP), or another source that provides qualifying health coverage, you can find coverage through the Marketplace, by visiting Covered California website.
What is the Premium Tax Credit?
Many individuals and families who enroll with Covered California receive financial assistance to help pay for their monthly health insurance plan premium, known as premium tax credit.
To be eligible for a subsidy (government assistance) and potentially for cost sharing reductions, you must fall within Covered California income limits and not be offered affordable, full coverage healthcare through an employer, Medicare, etc.
Key Documents and Forms:
If you or anyone listed on your tax return were enrolled in a health insurance plan through Covered California, you will need Form 1095-A before filing your taxes. Form 1095-A is required to file a federal income tax return, even if your income is below the usual filing threshold.
Covered California sends Forms 1095-A by January 31st of the year after coverage. You can usually find an electronic copy of your Form 1095-A by logging into your Covered California account. On the homepage, look for and click on “View {Tax Year} Federal Tax From 1095-A. If there are errors or you don’t receive the form, contact Covered California by calling (800) 300-1506.
Form 1095-A is a tax form issued by Covered California to individuals who enrolled in a qualified heath plan through the Marketplace. This form provides key information about your health coverage during the year and is used to complete and file the required IRS Tax Form 8962, Premium Tax credit.
Form 8962 is used to reconcile any premium tax credit received with the actual premium tax credit you’re eligible for based on your income and household size. The reconciliation process will determine if you owe money back or are due an additional refund.
It is important to note that you should not attach Form 1095-A to your tax return, but you should keep it with your records.
How to Avoid Owing Money Back:
When information that you put on your Covered California application changes during the year, you must update your Covered California account within 30 days to avoid owing money to the IRS when filing you tax return.
To report income changes, call Covered California at (800) 300-1506 or log in to your online account.
Changes that must be reported:
- Get married or divorced
- Have a child, adopt a child or place a child for adoption
- Have a change in income
- Get health insurance through a job or a program like Medicare or Medi-Cal
- Move
- Have a change in disability status
- Gain or lose a dependent
- Have a change in tax-filing status
- Have a change in citizenship or immigration status
- Are incarcerated or released from incarceration
- Have a change in status as an American Indian or Alaska Native or change your tribal status
- Have a correction to your name, date or birth, or Social Security number
- Experience any other changes that may affect your income and household size
View IRS Publication 974 for more details on the Premium Tax Credit