You can get an exemption so that you won’t have to pay a penalty for not having qualifying health insurance.
Some exemptions require an exemption application through Covered California. Other exemptions do not require an application: Instead, you can claim them when you file your state tax return.
Exemptions You Can Claim When You File State Taxes
- Income below the state tax filing threshold (you may still choose to file taxes and are required to if you received financial help).
- A short coverage gap of three consecutive months or less.
- Health coverage is unaffordable, based on actual income reported on your state income tax return when filing taxes.
- Individual:Cost of the lowest-cost Bronze plan through Covered California or the lowest cost employer-sponsored employee-only plan is more than 8.17 percent for the tax year 2023 and 7.97 percent for tax year 2024.
- Household:Cost of the lowest-cost employer-sponsored family plan that covers all employee’s dependents is more than 8.17 percent for the tax year 2023 and 7.97 percent for tax year 2024.
- Certain non-citizens who are not lawfully present.
- Citizens living abroad or residents of another state.
- Members of a health care sharing ministry.
- Members of federally recognized tribes including Alaskan Natives, or other individuals eligible for services through an Indian health care provider or the Indian Health Service.
- Incarceration (in jail, other than incarceration pending the disposition of charges).
- Enrolled in limited or restricted-scope Medi-Cal or other similar coverage.
To learn more, please visit theCalifornia Franchise Tax Board.
Exemptions You Can Apply for Through Covered California
You can only apply for a Covered California exemption for tax years 2020 and later. If you and all members of your tax household are not required to file a state income tax return, you do not need to apply for an exemption. If you are not sure if you are required to file, you may want to apply for an exemption anyway.
How to Apply
To apply for an exemption, you must provide all required information and acceptable proof for you and your tax household. Requirements are explained in the application for each exemption type.
You can submit your application online, by fax, or by mail. Information on how to submit is found at the end of the application. If you need help with your application, call (800) 300-1506.
What to Expect
Once you have submitted a complete exemption application, Covered California has up to 30 calendar days to determine whether you qualify. We will mail you a notice with our decision. The notice could show that your exemption was:
- Approved;
- Denied; or
- Had missing or inconsistent information and what steps to take.
Since exemptions are granted individually, the notice could also show that some individuals in your household were approved for an exemption and some were denied.
What to Do With Your Exemption
Use the exemption certificate number (ECN) provided by Covered California in the exemption approval notice when you complete your state taxes. This number is needed on Form FTB 3853, Health Coverage Exemptions and Individual Shared Responsibility Penalty, to prove that Covered California granted you an exemption from the penalty.
How to Appeal a Decision
If you disagree with our decision about your eligibility for an exemption you can file an appeal or a complaint. You have 90 days from the date of your exemption notice to ask for an appeal.
FAQs
California has a number of property tax exemptions, including a homeowners' exemption and disabled veterans' exemption. The state also offers a Property Tax Postponement Program for those 62 and older.
What are exemptions under California law? ›
Exempt employees in California generally must earn a minimum monthly salary of no less than two times the state minimum wage for full time employment. Simply paying an employee a salary does not make them exempt, nor does it change any requirements for compliance with wage and hour laws.
What is California exemption certificate? ›
Summary. A sales tax exemption certificate allows a buyer to make tax-free purchases. The purchaser must provide the seller with a completed exemption certificate.
How do I get an exemption in California? ›
To apply for an exemption, you must provide all required information and acceptable proof for you and your tax household. Requirements are explained in the application for each exemption type. You can submit your application online, by fax, or by mail.
How many exemptions should I claim California single? ›
A single filer with no children should claim a maximum of 1 allowance, while a married couple with one source of income should file a joint return with 2 allowances. You can also claim your children as dependents if you support them financially and they're not past the age of 19.
What qualifies as exemptions on taxes? ›
A tax exemption excludes certain income, revenue, or even taxpayers from tax altogether. For example, nonprofits that fulfill certain requirements are granted tax-exempt status by the Internal Revenue Service (IRS), preventing them from having to pay income tax.
Am I exempt California? ›
Exempt California employees must earn at least $58,240 a year, or double the state minimum wage, in order to be eligible for exempt status. At companies with 25 or fewer employees, the limit is $54,080 a year.
How many exemptions are there in CA? ›
How many times can I claim CA exemptions? You can claim CA exemptions for up to three exams, but you must exhaust any previous exemptions before being eligible for a new one.
What are two types of exemptions? ›
There are two types of exemptions-personal and dependency. Each exemption reduces the income subject to tax.
How do I file a California exemption claim? ›
How to make a Claim of Exemption
- Fill out forms. Fill out two court forms: ...
- File the Claim of Exemption with the levying officer. ...
- Wait to see if the claim is opposed. ...
- Reply to the opposition (if any) ...
- Check if your court uses tentative rulings. ...
- Go to the hearing.
To obtain the exemption for a property, you must be its owner or co-owner (or a purchaser named in a contract of sale), and you must live in the property as your principal place of residence. You must also file the appropriate exemption claim form with the Assessor.
What items are not taxed in California? ›
Exemptions from sales tax in California
- Certain food products for human consumption including many groceries.
- Sales to the US. Government.
- Prescription medicine and certain medical devices.
- Items paid for with food stamps.
- Liquefied Petroleum Gas.
The personal and senior exemption amount for single, married/RDP filing separately, and head of household taxpayers will increase from $122 to $124 for the 2020 tax year 2020. For joint or surviving spouse taxpayers, the personal and senior exemption credit will increase from $244 to $248 for the tax year 2020.
How long does an exemption take in California? ›
How long does the criminal record exemption process take to complete? If you do not have a criminal record, a clearance is normally available in a few days. If an exemption is needed, it may take three months or longer to complete the process.
What does exemption approval mean? ›
An exemption is a CDSS-authorized written document that "exempts" the individual from the requirement of having a criminal record clearance. The CDSS is prohibited by law from granting exemptions to individuals convicted of certain crimes (non-exemptible crimes).
What items are tax exempt in California? ›
Exemptions from sales tax in California
- Certain food products for human consumption including many groceries.
- Sales to the US. Government.
- Prescription medicine and certain medical devices.
- Items paid for with food stamps.
- Liquefied Petroleum Gas.
In order to claim exemption from state income tax withholding, employees must submit a W-4 (PDF Format, 100KB)*. or DE-4 (PDF Format, 147KB)* certifying that they did not have any federal tax liability for the preceding year and that they do not anticipate any tax liability for the current taxable year.
What is excluded from California taxable income? ›
California excludes unemployment from taxable income. Do not enter lottery winnings from other states. If you entered IRS deferred foreign income on your federal return you may subtract that amount on the California return. California does not conform to federal law regarding the disallowance of excess business loss.
