melissaeelhajj,
You do not owe CA any health insurance penalty because you have an exception covering a short term coverage gap of 3 continuous months or less. Just go into the CA State return, select the credits and taxes area and visit the Health Insurance Penalty area. Then say you will pick the months you had coverage and click on all the months except July and August and Continue. Continue past the next screen without clicking on any of the checkboxes, and you'll find that the penalty has been waived as a result of you only have a gap of two months.
