California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 4 - Individual Shared Responsibility Penalty › Section 26000.61000 - Individual Shared Responsibility Penalty - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) "Age 18" means an individual who attains
				the age of 18 on the anniversary of the date when the individual was
				born.
(b) "Annual premium" means
				the amount an applicable individual would pay during the calendar year for
				minimum essential coverage.
(c)
				"Annualized required contribution" means the required contribution for the
				part-year period times a fraction, the numerator of which is 12 and the
				denominator of which is the number of months in the part-year period during the
				responsible individual's taxable year. Only full calendar months are included
				in this computation.
(d)
				"Applicable dependent" has the same meaning as defined in section
				100710 of
				the Government Code.
(e)
				"Applicable dollar amount" has the same meaning as defined in subdivision (c)
				of section
				61015
				of the Revenue and Taxation Code.
(f) "Applicable entity" has the same meaning
				as defined in section
				61000
				of the Revenue and Taxation Code.
(g) "Applicable household income" has the
				same meaning as defined in section
				61000
				of the Revenue and Taxation Code.
(h) "Applicable household member" means the
				responsible individual, the responsible individual's applicable spouse, or one
				of the responsible individual's applicable dependents.
(i) "Applicable household members" has the
				same meaning as defined in section
				61000
				of the Revenue and Taxation Code.
(j) "Applicable individual" has the same
				meaning as defined in section
				100710 of
				the Government Code.
(k)
				"Applicable spouse" has the same meaning as defined in section
				100710 of
				the Government Code.
(l) "Carrier
				licensed or otherwise authorized to offer health coverage" has the same meaning
				as defined in section
				100501(c)
				of the Government Code.
(m)
				"Dependent" has the same meaning as defined in section
				17056
				of the Revenue and Taxation Code.
(n) "Electronic technology" includes, but is
				not limited to, the Internet, cloud computing, or an electronic information
				delivery system.
(o)
				"Employment-based health plan or eligible employer-sponsored plan" has the same
				meaning as "eligible employer-sponsored plan" as that term is defined in
				section 1.5000 A-2(c) of Title 26 of the
				Code of Federal Regulations.
(p)
				"Exempt individual" means an individual who is not subject to the Minimum
				Essential Coverage Individual Mandate under section
				100705(c)
				of the Government Code or is not subject to the penalty prescribed by section
				61010
				of the Revenue and Taxation Code pursuant to section
				61020
				or
				61023
				of the Revenue and Taxation Code.
(q) "Exchange" means the California Health
				Benefit Exchange, also known as Covered California, established pursuant to
				Title 22 (commencing with Section
				100500) of the Government
				Code.
(r) "Federal shared
				responsibility penalty" means the payment imposed under Section
				5000 A of the Internal Revenue
				Code as of December 15, 2017.
(s)
				"Filing threshold" means the amounts specified in Section
				18501(a)(1), (2),
				and (3) of the Revenue and Taxation
				Code.
(t) "Qualified health plan"
				has the same meaning as that term is defined in section
				61000
				of the Revenue and Taxation Code.
(u) "Health reimbursement arrangement" means
				an arrangement that is funded solely by an employer and that reimburses an
				applicable individual for medical care expenses (as defined under section
				213(d) of the
				Internal Revenue Code) incurred by any applicable household members up to a
				maximum dollar amount for a coverage period.
(v) "Lowest cost bronze plan" is the least
				expensive health plan that offers a "bronze level" of coverage, as defined in
				section
				1367.008
				of the Health and Safety Code and section
				10112.295
				of the Insurance Code.
(w) "Lowest
				cost family coverage" means the least expensive employment-based health plan
				offered to the applicable individual for that individual's applicable household
				members' health coverage that qualifies as minimum essential
				coverage.
(x) "Lowest cost
				self-only coverage" means the least expensive employment-based health plan
				offered only to the applicable individual for that applicable individual's
				health coverage that qualifies as minimum essential coverage.
(y) "Minimum essential coverage" has the same
				meaning as defined in Government Code section
				100710(g).
(z) "Month" means calendar month.
(aa) "Penalty" means the Individual Shared
				Responsibility Penalty imposed pursuant to Section
				61010
				of the Revenue and Taxation Code.
(bb) "Plan year" means the eligible
				employer-sponsored plan's regular 12-month coverage period, or for a new
				employee or an individual who enrolls during a special enrollment period, the
				remainder of a 12-month coverage period.
(cc) "Required contribution" has the same
				meaning as defined in section
				61020(a)(2)
				of the Revenue and Taxation Code.
(dd) "Responsible individual" has the same
				meaning as defined in section
				61000
				of the Revenue and Taxation Code.
(ee) "Short coverage gap" means a continuous
				period of three months or less in which the individual is not covered under
				minimum essential coverage.
(ff)
				"Technology constraints" means an inability of the tax preparation software
				used by an applicable entity to electronically file the return required by
				subdivision (b) of section
				61005
				of the Revenue and Taxation Code as a result of the complex nature of the
				return or inadequacy of the software.
(gg) "Wellness program" has the same meaning
				as defined in section
				54.9802-1(f) of
				Title 26 of the Code of Federal Regulations, as of December 15, 2017.
1. New chapter
				  4 (sections
				  26000.61000-26000.61025) and
				  section filed 12-17-2020; operative 12-17-2020. Submitted to OAL for filing and
				  printing only pursuant to Revenue and Taxation Code section
				  61030(c)
				  (Register 2020, No. 51).
Note: Authority cited: Section
					 61030,
					 Revenue and Taxation Code. Reference: Section
					 61000,
					 Revenue and Taxation Code.