Penalty if underestimate income for Covered CA health insurance benefits

[Bsch4477]

What is your question?

[DIY_Tax_Person]

For my Covered California health insurance benefits, you have to estimate your income for the next year. My question is what happens if I under-estimate my income? Penalty? If I only have to pay the difference, then it seems to make sense to always underestimate.

NOTE: This message field does not function on my desktop PC -- only on my laptop.

[Bsch4477]

You just pay the difference. Your only penalty would be if you did not have sufficient withholding and estimated payments to cover your tax liability.