California Restores Individual Mandate and Tax Penalty in 2020.

WILL YOU PAY A PENALTY FOR BEING UNINSURED IN 2020?

The answer is a resounding YES! Golden state lawmakers have passed legislation restoring the mandate penalty next year, joining four other states. According to Covered California this is an important factor in lowering premiums in 2020. Californians will be saving an average of $167 per year on their coverage next year.

However, for those who remain uninsured they may be subject to a state tax penalty of $695 per adult and $347.50 per child, or 2.5% of their household income, whichever is higher. From those under age 65 the state expects to earn about $1 billion in tax penalties during the next three years.

To avoid the tax penalty you must have minimum essential coverage. If you are uninsured even for a few months you still could be subject to the penalty.

The best way to avoid is to enroll in a plan during California’s enrollment period which begins October 15th and ends January 15th.

LJR INSURANCE SOLUTIONS IS A CERTIFIED COVERED CALIFORNIA BROKER. ANY QUESTIONS OR INFORMATION PLEASE CALL LOU REINITZ AT 760 699-1359. You can request a no cost consultation in my office or your home, or by the internet or phone.

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