What is a penalty for not having health insurance?

In California, the penalty for not having health insurance is outlined by the government’s health insurance law. The penalty is a tax that is imposed on individuals who do not have any form of health insurance. This tax can be paid when individuals file their federal income tax returns. The amount of the penalty is either a certain percent of your yearly household income, or a certain flat fee per person in the household, whichever is greater. For 2019, the penalty for not having health insurance in California is the greater of 2.5% of your yearly household income, or $695 per person in the household. In 2020, the penalty is the greater of 2.5% of your yearly household income, or $695 per person in the household up to $2,085 for the whole family. If you are uninsured for only part of the year, 1/12 of the annual penalty applies to each month you are uninsured. If a member of the household does not have health insurance for only one month, the penalty for that year is 1/12 of the amount for the whole year. It is important to note that the tax penalty for not having health insurance does not apply in certain limited situations, such as if you are uninsured for less than three months in a row, or if you are low-income and cannot afford coverage. It is also important to remember that the penalty may be waived if you qualify for an exemption.

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