California's Insurance Mandate


Starting in January of 2020, California will require all residents to have basic health insurance. The bill passed in the California Assembly is called the California Health Care Coverage Shared Responsibility Act. This “Individual Mandate” is like what was seen in the Affordable Care Act. There will be a fine for individuals who do not secure health coverage. This can be applied based on the number of months, or the size of the household.

One big difference with this requirement is that the Franchise Tax Board (FTB) will not fine employers who do not offer health care to their employees. The fines that are collected will help to create subsidies for those who have difficulties paying for the insurance. These individuals must meet certain specific criteria. Members of Native American tribes and those who receive certificates of exemption will not be required to be a part of this program. The FTB will administer the program and any penalty will be reported on, and paid with, the tax return for the year that includes the months with no coverage. This new aspect of tax preparation is another reason to seek out a Qualified Tax Professional and get a clear view of where you stand.

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