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New Member
posted Feb 1, 2021 11:59:30 PM

How can I avoid the health care penalty??

I love in california,ca

0 3 2209
3 Replies
Expert Alumni
Feb 2, 2021 8:16:02 AM

Beginning January 1, 2020, California residents must either:

  • Have qualifying health insurance coverage
  • Obtain an exemption from the requirement to have coverage
  • Pay a penalty when they file their state tax return

You may qualify for an exemption to the penalty. Most exemptions may be claimed on your state income tax return while filing.

 

  • Income is below the tax filing threshold
  • Health coverage is considered unaffordable (exceeded 8.24% of household income for the 2020 taxable year)
  • Families’ self-only coverage combined cost is unaffordable
  • Short coverage gap of 3 consecutive months or less
  • Certain non-citizens who are not lawfully present
  • Certain citizens living abroad/residents of another state or U.S. territory
  • Members of health care sharing ministry
  • Members of federally-recognized Indian tribes including Alaskan Natives
  • Incarceration (other than incarceration pending the disposition of charges)
  • Enrolled in limited or restricted-scope Medi-Cal or other coverage from the California Department of Health Care Services.
  • Religious conscience exemption
  • Affordability hardship
  • General hardships
  • Visit Covered California for more details.

Returning Member
Feb 8, 2021 3:18:26 PM

TurboTax State form for CA doesn't give the option to request health insurance exemption for an adult dependent that has been a resident of another state for the whole year.  Will the tax form be updated to include this?

Expert Alumni
Feb 10, 2021 3:31:16 PM

Were you domiciled in California, but outside California for a temporary or transitory purpose?

CA Residents.

 

If you were a resident of another state, you are not required to maintain qualifying health insurance throughout the year in CA.

California Individual Health Care Mandate