NEW: Franchise Tax Board Launches Penalty Estimator 

 

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. 

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