When we filed the tax return. client had to pay the penalty for CA and US healthcare. I thought these penalties were waived for 2020? Do we need to amend the return or will the IRS or FTB be automatically be refunding these penalties?
Was it a “penalty” or a payback of the advance premium tax credit (federal) or premium assistance subsidy (CA)? On the federal return there is no longer a penalty and the advance premium tax credit payback was waived for 2020. California imposes a penalty and still requires excess assistance subsidies to paid back.
The penalty for not having health insurance for more than 2 months in California only started January 2020 and I haven’t heard anything about it being waived. The penalty for not having health insurance for federal still exists but was reduced to $0 as of 2019.