2020 California Code
Revenue and Taxation Code - RTC
DIVISION 2 - OTHER TAXES
PART 32 - Individual Shared Responsibility Penalty
Section 61000.

For the purposes of this part, the following definitions shall apply:

(a) “Applicable entity” means the following:

(1) A carrier licensed or otherwise authorized to offer health coverage with respect to minimum essential coverage, including coverage in a catastrophic plan, that is not described in paragraph (3) or (4).

(2) An employer or other sponsor of an employment-based health plan with respect to employment-based minimum essential coverage

(3) The State Department of Health Care Services and county welfare departments with respect to coverage under a state program.

(4) The Exchange with respect to individual health plans, except catastrophic plans, on the Exchange.

(5) Any other provider of minimum essential coverage, including the University of California with respect to coverage under a student health insurance program.

(b) “Applicable dependent” has the same meaning as defined in Section 100710 of the Government Code.

(c) “Applicable household income” means, with respect to a responsible individual for a taxable year, an amount equal to the sum of the modified adjusted gross income of all applicable household members who were required to file a tax return under Chapter 2 (commencing with Section 18501) of Part 10.2 for the taxable year.

(d) “Applicable household members” means, with respect to a responsible individual, all of the following persons:

(1) The responsible individual.

(2) The responsible individual’s applicable spouse.

(3) The responsible individual’s applicable dependents.

(e) “Applicable individual” has the same meaning as defined in Section 100710 of the Government Code.

(f) “Applicable spouse” has the same meaning as defined in Section 100710 of the Government Code.

(g) “Dependent” has the same meaning as defined in Section 17056 of the Revenue and Taxation Code.

(h) “Exchange” means the California Health Benefit Exchange, also known as Covered California, established pursuant to Title 22 (commencing with Section 100500).

(i) “Household size” means, with respect to a responsible individual, the number of applicable household members.

(j) “Modified adjusted gross income” means adjusted gross income, as defined in Section 17072, increased by both of the following:

(1) The amount of interest received or accrued by the individual during the taxable year that is exempt from tax, unless the interest is exempt from tax under the United States Constitution or the California Constitution.

(2) Foreign-earned income, foreign housing exclusion, or foreign housing deduction under Section 911 of the Internal Revenue Code.

(k) “Premium assistance” means the amount of credit allowable under Section 36B of the Internal Revenue Code of 1986 and any premium assistance subsidies administered pursuant to Title 25 (commencing with Section 100800) of the Government Code.

(l) “Qualified health plan” has the same meaning as defined in Section 1301 of the federal Patient Protection and Affordable Care Act (Public Law 111-148), as amended by the federal Health Care and Education Reconciliation Act of 2010 (Public Law 111-152).

(m) (1) Except as provided in paragraphs (2) and (3), “responsible individual” means an applicable individual who is required to file a return under Chapter 2 (commencing with Section 18501) of Part 10.2 and who is either of the following:

(A) An applicable individual required to be enrolled in and maintain minimum essential coverage, pursuant to subdivision (a) of Section 100705 of the Government Code.

(B) An applicable individual required to ensure that a person who qualifies as the applicable individual’s applicable spouse or applicable dependent is enrolled in and maintains minimum essential coverage for that month, pursuant to subdivision (b) of Section 100705 of the Government Code.

(2) If two applicable individuals file a joint return, only one shall be considered the responsible individual for purposes of calculating the penalty as determined by the Franchise Tax Board.

(3) If a dependent files a return, only the dependent or the individual claiming the dependent, but not both, shall be considered the responsible individual for purposes of calculating the penalty as determined by the Franchise Tax Board.

(Added by Stats. 2019, Ch. 38, Sec. 42. (SB 78) Effective June 27, 2019.)