MyFTB accountHelp 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 return, include their income from things like a:
- Summer job
- Work-study
- Limited part-time work