California’s Individual Health Care Mandate
On August 30, FTB posted an announcement on its website about California’s new state individual health care mandate. The mandate, which takes effect on January 1, 2020, requires Californians to have qualifying health insurance coverage throughout the year. Those who fail to maintain coverage could face a financial penalty unless they qualify for an exemption.
Generally speaking, a taxpayer who fails to secure coverage will be subject to a penalty of $695 or more when they file their 2020 state income tax return in 2021. The penalty for a dependent child is half of what it would be for an adult. Most exemptions from the mandate will be claimed when filing 2020 state income tax returns in early 2021. Additional exemptions from the mandate will be granted through Covered California beginning in January 2020.