You can apply to get an exemption so that you won’t have to pay a penalty for not having qualifying health insurance in California. Some exemptions require an exemption application through Covered California. Other exemptions do not require an application: Instead, you can claim them when you file your state tax return. TurboTax provides a place to make the entries when you prepare your California return.
Exemptions You Can Claim When You File State Taxes
- Income below the state tax filing threshold (you may still choose to file taxes and are required to if you received financial help).
- A short coverage gap of three consecutive months or less.
- Health coverage is unaffordable, based on actual income reported on your state income tax return when filing taxes.
- Individual: Cost of the lowest-cost Bronze plan through Covered California or the lowest cost employer-sponsored employee-only plan is more than 8.17 percent for the tax year 2023, 7.97 percent for tax year 2024, and 7.28 percent for tax year 2025.
- Household: Cost of the lowest-cost employer-sponsored family plan that covers all employee’s dependents is more than 8.17 percent for the tax year 2023, 7.97 percent for tax year 2024, and 7.28 percent for tax year 2025.
- Certain non-citizens who are not lawfully present.
- Citizens living abroad or residents of another state.
- Members of a health care sharing ministry.
- Members of federally recognized tribes including Alaskan Natives, or other individuals eligible for services through an Indian health care provider or the Indian Health Service.
- Incarceration (in jail, other than incarceration pending the disposition of charges).
- Enrolled in limited or restricted-scope Medi-Cal or other similar coverage.
To learn more, please visit the California Franchise Tax Board.
Exemptions You Can Apply for Through Covered California - see links below:
General Hardship
Affordability Hardship
Religious Conscience
See this Covered California webpage for more information.
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