Tips on Reporting Self-employment Income to the WA Exchange

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Are you self-employed? It is best practice to estimate your self-employment income and expenses for the year based on past earned income, expenses, industry standards and other information. If you filed a federal tax return last year, you could use the Adjusted Gross Income you reported, deduct self-employment expenses, then add or subtract based on how you think your income may change for the current year. 

As always, if you have any questions, do not hesitate to give us a call at 206-258-6820. We are always here for you with free assistance.  

If you are trying to report self-employment income based on prior year taxes:

Adjusted Gross Income – Expenses from Prior Year +/- Anticipated Changes = Current Year Self Employment Income

You should update your estimated annual net income when your business circumstances change. If your earnings are lower, you may be eligible for higher tax credits and Cost Sharing reductions. If your earnings are higher than you reported on your Washington Healthplanfinder application, you could have to pay back some or all of the tax credits you took during the year.

You may report that you are self-employed, and may or may not receive a “wage” or pay stub. Only do this if you do not receive a paycheck from your business (income from a corporation is reported as “earned income”.) Additionally, if you receive dividends from your corporation, this would be considered “other” income.

When you are truly self-employed, follow the guidelines below for how income should be reported. You can report all earned income (through your business), collected from your most current tax return, profit and loss statements, or other income ledgers. Individuals should report their net income, taking into account any allowable business expenses (sometimes called “profit”).

  • If self-employment income is higher than business expenses, report as net income

If business expenses are higher than income, report a net loss

Washington Income Reporting and Your CARES Act Federal Stimulus Payments

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In response to the COVID-19 public health crisis, Congress passed the CARES Act which includes a federal stimulus payment. The amount most individuals will receive is a one-time payment of $1200 individual/$2400 joint filer/$500 per child. Core Columbia Insurance is here to answer any questions you may have about how this benefit impacts your eligibility for Healthplanfinder coverage.

The one-time federal stimulus payment (also referred to as the “Recovery Rebate” by the media or “Economic Impact Payment” by the IRS) is not considered income for purposes of Apple Health or APTC/CSR eligibility. At this time, Core Columbia and the Exchange advise clients to not report this as income in their application.

The federal stimulus payment (referred to as the Recovery Rebate or Economic Impact Payment) is not income for purposes of applying for health and dental coverage through Washington Healthplanfinder. You do not need to report any check or payment amount you receive from the federal government in your application.

Core Columbia Insurance is always here for you, working remotely, to provide straightforward, up to date answers to all of your questions – give us a call at 206-258-6820.

Form 1095-A: What You Need to Know to File Your 2019 Taxes in CA or WA

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By now you should have received your Form 1095-A.

If you have not received it or are unable to locate it, please give us a call at  619-259-6905 or 206-258-6820 , and we will send you a copy.

Below are some additional tips to help with your 2019 tax needs.
Please disregard this message if you have already received your 1095-A and filed your 2019 taxes.
Why do I need Form 1095-A? 

This form lists the amount of tax credits you received in 2019 to help pay your health insurance monthly premiums. Why do you need it? When you enrolled in your plan, you were asked to estimate your 2019 income, which determined your federal tax credits to help pay for your monthly health insurance premium.

When you complete your taxes this year for 2019, you’ll have to report whether your actual income was different from your estimated income. Since most members received tax credits in advance, you may either owe or be owed money if there’s a difference. 

You will need this form to file your taxes if you had coverage for any part of 2019.
Can I file my 2019 taxes without my 1095-A?

If you are expecting to receive a Form 1095-A, you should wait to file your 2019 income tax return until you receive that form. However, it is not necessary to wait for Forms 1095-B or 1095-C to file. What is the difference between Forms 1095-A, 1095-B and 1095-C? 
Getting the Right Tax Credit or Financial Help

Since you received financial help to make your monthly insurance premium more affordable, you will need to file taxes. The IRS will then compare this financial help, which is officially called Advanced Premium Tax Credits (APTC), you received during 2019 with the financial help that you qualify for based on your actual household income and family size.