| Starting this year, all California residents must have health insurance or pay a penalty. The California Franchise Tax Board (FTB) has launched the individual mandate penalty estimator to help consumers calculate the penalty they may owe if they go without qualifying health coverage in 2020. This online estimator can help you reinforce with your consumers the importance of having health insurance coverage this year. |
| Here is a penalty fact sheet . As a reminder, there are two methods of calculating the penalty, and a household will pay* whichever calculation yields the larger penalty: 1. A flat amount based on the number of people in the household – $695 per adult and $347.50 per dependent child, up to an annual max of $2,085 regardless of household size. 2. A percentage of the household income – a penalty of 2.5% of all gross household income over the tax filing threshold. *Some consumers may not have to pay a penalty if they qualify for an exemption. |
| Note: For the percentage of income penalty calculation, the household income subject to the penalty is any income earned above the household’s tax filing threshold, which varies by household size and composition. Although the FTB will not publish 2019 thresholds until later this year, the online estimator is using the 2019 thresholds to produce its estimates for the purposes of the upcoming 2020 tax year. In the meantime, the 2018 thresholds are online and quite close to the 2019 thresholds if you would like to use them for reference. If you or a family member has any questions about the tax penalty, give us a call at 619-259-6950, or send a quick email to us at info@corecolumbia.com. We are always here for you. |