2020 Health Insurance Requirement/Penalty - Spidell

2020 Health Insurance Requirement/Penalty

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Message Board 2020 Health Insurance Requirement/Penalty

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    • #267130
      Dave Yoshida

      Some questions as I’m starting to plan/learn for the new requirement on 2020 returns…

      1. Will typically excluded income (Social Security benefits, unemployment benefits) be included in CA household income for the purpose of calculating affordability?
      2. Will the additional federal unemployment also be included in household income?
      3. Is the ISRP an all or nothing penalty? Have insurance (or an exemption) for all 12 months or pay, or is it prorated?

      These are the questions I’m not really finding answers to… Thanks 🙂

    • #267397
      Mark Bole

      I too would like to know more about the CA Premium Subsidy (CAPS).  Is this even an advance of a refundable credit on the CA Form 540?  Or is it something else? CoveredCA does not address this, last time I looked.

      If someone does not qualify for federal APTC but does qualify for CAPS, will they get a Form 1095-A early next year?

      To answer the first two of Dave’s questions:

      yes, the Covered CA online application requires that you input both Social Security benefit income and unemployment benefits, it also breaks out the $600 PUA (?) unemployment add-on as a separate entry from regular UI.

    • #268393
      Mark Bole

      Here is a little bit I found after a while:


      Also, here is evidence of one of the form numbers, but the form itself is nowhere to be found.

      “Use Form 3853 to get an accurate penalty amount.”

      It’s still not clear whether the CAPS (subsidy) will be treated the same as the federal Premium Tax Credit (advance of a refundable income tax credit).  Or if there will be a payback limitation based on AGI.

      Based on the penalty calculator, I think the penalty is calculated month by month, after allowing for the (up to) 3 month continuous gap in coverage.

    • #268409
      Lynn Freer

      Yes it is treated the same as the federal subsidy. You can get an advanced premium credit and reconcile on the return. You compute along with the federal premium credit and then the excess is the CA credit. Like the federal you can end up owing the overpaid subsidy or the penalty for failing to have health insurance


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