Even after the Tax Cuts and Jobs Act effectively eliminated the Federal penalty for a lack of health insurance coverage, uninsured individuals may still be on the hook for a penalty. If you are a resident of a state that enacted their own health insurance mandate, you will still be fined if you are uninsured.

Beginning on January 1, 2019, individuals were no longer required to procure health insurance under Federal law (health insurance was mandatory for everyone under the Affordable Care Act). This means that individuals will not be required to prove coverage for their 2019 Federal tax returns filed during the spring of 2020. If you live in certain states though, you may still be required to document health insurance coverage or face tax penalties at the state level.

One of theses states is California. As the state leads the fight against the removal of a Federal mandate, Sacramento enacted a statewide health insurance mandate that requires health insurance for the 2020 tax year. Individuals have to be insured beginning on January 1, 2020 or they will face fines of $695 or more on their tax returns filed during the spring of 2021. The Minimum Essential Coverage Individual Mandate generally follows the precedent set for required health insurance by the Affordable Care Act. Married couples and families will face even higher fines than individuals. The fine for a family of 4 in California (2 adults and 2 dependents) will be at least $2,085, per the Franchise Tax Board.

If you are uninsured, you have a couple options to avoid a fine. For one, individuals can sign up for Covered California before December 15th in order for coverage to begin on January 1st. In addition, many employers offer health insurance benefits. For the vast majority of employers, the open enrollment period for 2020 health insurance is now.

In addition to California, residents of Washington DC, Massachusetts, New Jersey, Rhode Island, and Vermont are also required to procure insurance. In the coming years, even more states will likely enact individual mandates. Health insurance is extremely important on its own but the additional fines make it even more necessary to get covered.