Tax professionals Health care mandate
Here’s more information about the state healthcare mandate that may interest tax professionals.
Health care forms
- Premium Assistance Subsidy (FTB 3849)
- Health Coverage Exemptions and Individual Shared Responsibility Penalty (FTB 3853)
- California Health Insurance Marketplace Statement (FTB 3895)
Outreach to the public
We’ve partnered with Covered California to ensure the public is aware of the HCM. Covered California has been running TV and radio ads urging people to get coverage and take advantage of federal financial assistance. We also have several other outreach efforts planned, including news releases, media interviews, social media, etc.
How they work
Covered California will administer health care subsidies. Taxpayers who obtain health insurance from Covered California may qualify based on their projected annual income. Subsidies are received in the form of reduced cost of monthly premiums. If a taxpayer’s employer is offering health coverage, the taxpayer may not be eligible for subsidies.
California residents who do not have coverage for themselves and their dependents for each month in 2021, and who do not meet an exemption, will pay a penalty of $800adult or more and $400/minor, or 2.5% of their or gross income over the filing threshold for their filing status, whichever is higher. The penalty for a married couple without coverage can be $1,600 or more, and the penalty for a family of four with two dependent children could be $2,400 or more.
A short gap coverage exemption will apply for taxpayers who did not have coverage for three consecutive months or less. (Note to meet the federal short gap coverage exemption the gap coverage must be less than three consecutive months.)
Check the box
If the taxpayer, the taxpayer’s spouse or domestic partner, and the taxpayer’s dependents had qualifying health care coverage for each month of 2021, then make sure to check the “Full-year health care coverage,” box 92, on the return.