All Questions

To avoid a tax penalty, how many months in 2024 does one over 18 have to be covered with health insurance in CA?

Based on current California law, the health insurance mandate requires individuals over the age of 18 to be enrolled in minimum essential coverage for the full duration of 2024, with strictly limited exceptions, in order to avoid a tax penalty. There is no longer a "3 month lapse" allowance in 2024. However, there are some qualifying life events like loss of a job which could exempt someone from the penalty if there are gaps in coverage.

In specific detail:

- The state tax penalty for lack of health insurance, known as the individual mandate penalty, was reinstated in California starting in 2020.

- For the 2024 tax year, individuals must maintain essential coverage for the entire year or qualify for a full-year exemption to avoid paying the penalty for any month they or their dependents were uninsured.

- Limited exceptions exist for low-income residents or those experiencing certain qualifying life events. Events like losing workplace coverage, getting divorced, or having a baby can result in exemption.

- Short coverage gaps can still incur a pro-rated penalty unless the full year is exempted. There is no standard 3 month non-penalty lapse anymore.

So in summary, all adults who can afford insurance are required to maintain enrolled status for themselves and dependents throughout 2024 under California law and healthcare policy. Consulting a tax professional for guidance on qualification exceptions like economic hardship or life circumstances that may warrant exemption is advisable.

Can a company force you into a contract you have not signed in California?

No, a company cannot force you into a contract you have not signed in California. Some key points here:

- For a contract to be legally binding, it requires mutual agreement between parties typically indicated by signatures. If you have not signed any new agreements with CarMax, you are likely not bound to new loan terms.

- Verbal agreements can potentially be enforceable, but are more difficult to prove. However, you state you did not even provide verbal consent to new terms on the phone. Without evidence of clear mutual consent, there is no basis to claim you agreed.

- CarMax cannot unilaterally place itself as a creditor on your accounts or bills for a purchase without a valid contract permitting them to do so. This seems questionable legally if done without your consent.

- You have reasonable grounds that no loan contract is in place giving them rights over the vehicle purchase. You can request proof from CarMax of any signed loan agreement or provide written notice that you do not consent to any agreements.

- You likely have the option to return the vehicle if CarMax cannot provide proof of a binding purchase contract. They would then need to remove the debt and as a creditor from your accounts.

I would recommend formally requesting documentation from CarMax of any signed contract with the new terms or loan agreement in writing. If they cannot provide this, consult a consumer protection attorney on next steps to have the invalid debt and creditor status removed.