Individual Shared Responsibility Penalty updated July 2020 Tax News
Beginning January 2020, state law (Senate Bill 78 [Chapter 38, Statutes of 2019]) requires individuals to have minimum essential coverage or pay the Individual Shared Responsibility Penalty (penalty) unless they qualify for an exemption. The law established that, for the years following 2019, the applicable dollar amount used to calculate the penalty will be indexed based on the California Consumer Price Index (CA CPI). As a result, the applicable dollar amount for 2020 is $750.
The applicable dollar amount may change annually.