CA healthcare penalty - Spidell

CA healthcare penalty

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Message Board CA healthcare penalty

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    • #305288
      Anonymous
      Participant

      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?

    • #305291
      Sandy Weiner
      Participant

      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.

      See the IRS webpage re 2020  excess advance premium tax credits: https://www.irs.gov/newsroom/irs-suspends-requirement-to-repay-excess-advance-payments-of-the-2020-premium-tax-credit-those-claiming-net-premium-tax-credit-must-file-form-8962

    • #305314
      Shannon Miller
      Participant

      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.

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