California Health Care Coverage Penalties for Tax Returns in 2021
Reminder from the California Franchise Tax Board website is below. Be sure to get your insurance or face possible penalties next year.
Last year, a new state law required Californians to have qualifying health insurance coverage throughout the year. Those who do not maintain qualifying medical coverage are subject to a penalty of $750 or more when they file their tax returns. The penalty for a dependent child is half of what it would be for an adult. A married couple without coverage could see a penalty of $1,500 or more, and for a family of four with two dependent children, it could be $2,250 or more. You can still get health coverage and financial help at CoveredCA.com. It is crucial to get health coverage now to avoid a penalty in 2022. For information, visit ftb.ca.gov/healthmandate.
To clarify: You must have had health insurance in 2020 to not be penalized in 2021 when filing your returns.
We provide third-party links as a convenience and for informational purposes only and accept no responsibility for the accuracy, legality, or content on these sites.
This content is for information purposes only and should not be considered legal, accounting or tax advice, or a substitute for obtaining such advice. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a client’s particular situation. Bedrock Accounting does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research Readers should independently verify statements or seek professional guidance before relying on them.