Because the federal authorities eliminated the tax penalty for not having medical health insurance in 2019, many Californians might imagine they don’t seem to be topic to a tax penalty for not having medical health insurance. California responded to the elimination of the federal penalty by establishing their very own state tax penalty for not having medical health insurance which went into impact the 2020 tax yr. Though nobody likes tax penalties, the aim of the tax penalty is to forestall wholesome folks from leaving the insurance coverage danger swimming pools and into much less regulated plans which might make medical health insurance much more costly for everybody else.
In case you would not have minimum essential health coverage, you’re topic to the tax penalty. Non secular well being ministry plans, short-term medical, unintended/vital sickness indemnity plans, and different plans out out there are usually not thought-about minimal important well being protection. You will need to have a plan via an employer, a market plan, or a plan via a serious service resembling Blue Protect of California, Anthem Blue Cross, Kaiser, LA Care, Oscar, or different carriers regulated by the Reasonably priced Care Act that cowl the ten important well being advantages.
If you don’t enroll in minimal important protection, you’ll face a California tax penalty of $800 per grownup, $400 per little one, or 2.5% of your family revenue, whichever is larger. You should utilize the California Franchise Tax Board Individual Shared Responsibility Penalty Estimator to estimate your tax penalty. In case you have a spot of protection for not more than 3 months of the yr, you aren’t topic to the tax penalty.
In case you not too long ago began paying the tax penalty for not having medical health insurance, it’s possible you’ll be eligible to use for medical health insurance through the Particular Enrollment Interval. New to 2022, anybody who has began paying the tax penalty for not having medical health insurance for the 2021 tax yr is eligible to use inside a 60-day window for medical health insurance. Please contact us at 310-909-6135 to go over your insurance coverage choices. At Stable Well being Insurance coverage Providers, we attempt to assist our purchasers discover the precise well being, dental, imaginative and prescient, life, and long-term care insurance coverage which most closely fits their price range and medical wants.