Taxpayer lives abroad all year, has foreign health insurance, has California rental properties. Is there an exemption for CA healthcare coverage or file CA NR

Forum|Forum|5 years ago
February 24, 2021
2 replies
16 views

No text available

Lacerte Tax

This topic has been closed for replies.

George4Tacks

Level 15

Screen 39 > California Premium ... > Enter a 1 for 12 month coverage

Answers are easy. Questions are hard!

C

celine389Author

Level 3

Thank you. I just found it myself by reading CA form 3853. I just wonder, when I just enter full year covered, how do they know? with the foreign address?

I have other clients who live mostly abroad, returning to California a few times during the year to their home, file as California resident, have health insurance coverage overseas, still claim have full year coverage without any 1095-A,B or C? Should I attach form 3853 with the exemption with the CA return?

itonewbie

Level 15

How do they know? Take a look at Sch CA (540NR).

Your client being overseas most of the them doesn't necessarily make him/her a nonresident. CA has a very clear safe harbor and we make sure our clients understand how their presence in CA needs to be managed provided all the other conditions are met.

---------------------------------------------------------------------------------Still an AllStar

itonewbie

Level 15

The program will automatically exempt nonresidents from the penalty without any entry. Are you seeing anything different?

---------------------------------------------------------------------------------Still an AllStar

Sign up

Login with SSO

Let's get you signed in

Login with SSO