Help with annual income Health care penalty estimator

When to calculate

You will need to calculate your annual household income if any of the following apply:

• Your annual household income is below the filing threshold. You plan on checking the “Full-year health care coverage or exempt” box on Form 540
• You could not afford health coverage. You plan to claim an exemption for health care coverage that is considered unaffordable
• You want to estimate your penalty

What counts as annual household income

Your household for the penalty includes:

• You
• Your spouse or registered domestic partner (RDP)
• Your dependents

The penalty estimator uses an income number called modified adjusted gross income (MAGI). MAGI is not a line on your tax return.

Generally, for each member of your household who is required to file a tax return, it is the total of the following:

• Your adjusted gross income (AGI) on your state tax return
• Excluded foreign income
• Tax-exempt interest

Dependent income

If your dependent is required to file a state tax return³, include their income from things like a:

• Summer job
• Work-study
• Limited part-time work