Health Coverage Mandate Update
Covered California recently reported that the state of California is helping to lower costs for health coverage and is reinstating the Affordable Care Act penalty for not having health insurance.
On Jan. 1, 2020 a new rule requires Californians to have qualifying health insurance coverage throughout the year. Generally speaking, the penalty will be $695 or more when you file your 2020 state income tax return in 2021. The penalty for a dependent child is half of what it would be for an adult. A typical family of four that goes uninsured for the whole year would face a penalty of at least $2,000.
The penalty will be applied by the California Franchise Tax Board when you file your state tax return. For information about the penalty, including the amount your family could owe for not having coverage in 2020, please visit the Franchise Tax Board’s website.