Many Californians who go without insurance may unknowingly pay more in tax penalties than they would for a health plan. California is one of four states, plus the District of Columbia, that penalizes residents for not having health insurance. This most recent tax season, Californians saw penalties of up to $850 per adult and $425 per child.
During the 2022 tax season, the latest year for which data is available, more than 271,000 households paid fines for lacking health insurance, according to the Franchise Tax Board. Most of those who paid the fines earned less than $50,000.
Advocates also advise that Covered California enrollees should ensure their household and income information is up to date. If that information is outdated because of a job change or another life event, enrollees could receive excess premium subsidies. In that case, they may find that they’ll have to repay some of that assistance when they next file their taxes. Conversely, some people may learn that they are eligible for more assistance than they are currently receiving.
Open enrollment for 2025 starts Nov. 1.