Penalty money back

[j-a-sweets]

refund penalty

[Mike9241]

we need an explanation of what the penalty was for and paid to whom to give you advice. 

[Vanessa A]

If you received a refund, you were not entitled to, then yes, you would pay a penalty on the amount you owe back.  This would be similar to the penalty and interest on the penalty you would pay if you paid your taxes late. 

[j-a-sweets]

Good morning, 

Im in the military and have Healthcare but during the process of doing my taxes i selected that I don’t have healthcare by accident and was charged $850 as a penalty and was already taken from my back account.What process would I have to do to get my $850 back. Thank you! 

[Vanessa A]

Which state are you in?  The IRS does not have a health care penalty. 

[j-a-sweets]

Good morning, 

I live in California but I’m stationed in Virginia I’ve been in Virginia all year in 2022. 

[j-a-sweets]

The penalty developed in the 2022 taxes- your State returns- Did you have health insurance coverage in 2022, I selected I didn’t have it at any point which caused a penalty by accident it caused a penalty but since im in the military I had health insurance coverage all year.

[Critter-3]

If CA is your SLR  but you are not stationed there  and you have no other CA income to report then you don't need to file a CA return at all  unless you had CA taxes withheld.   File a non resident CA return to get back any taxes you had withheld.   Once the CA return you have already filed has fully processed then you can amend the CA return to switch to a  non resident.   The amendment process opens up later this month.

Your domicile

If your domicile is California, we consider you a resident, and you pay tax on all income while permanently stationed here.

If you come to California because of permanent change of station (PCS) orders, you do not become a resident. Generally, you are a resident of the state from which you entered the military.

Domiciled in California

Your domicile is the one place:

• Where you maintain a true, fixed and permanent home
• To which you intend to return whenever you are absent

Temporary Duty assignment (TDY)

If you leave California under a TDY, you will continue to be a California resident.

Home port

If your home port is in California, you remain a resident while on sea duty, regardless of the ship’s location.

Stationed outside of California

An individual domiciled in California when entering the military is considered a nonresident while stationed outside California on permanent change of station (PCS) orders.

We tax nonresidents on California sourced income.

https://www.ftb.ca.gov/file/personal/filing-situations/military.html#:~:text=If%20your%20domicile%20....

[DaveF1006]

Go back and amend your 2022 return to check the box indicating you had health insurance for the entire year. This will remove the penalty from your state return and offer a state refund that will offset the penalty in your original return.  

Just an FYI, the 2022 amendment section is not available until Feb 16. To enter the change, you will go to state returns and click on edit next to your state.  Navigate through the return until you reach a page asking if you had health insurance for the entire year. Here you will indicate that did have health insurance.

To amend, log into turbo tax> scroll to the bottom of the landing page> select Your tax returns & documents>select 2022>amend(change) return

@j-a-sweets 

[j-a-sweets]

Good Evening, 

Im currently trying to amend my 2022 taxes to fix the issue but can’t find the health insurance section to fix the issue. 

[BrittanyS]

To access the CA health insurance screen in TurboTax Online, you will follow these steps:

1. Open state return
2. Click Edit next to General Information
3. Answer questions for about your filing, principal residence, electronic payments, and dependents
4. Correct questions, "Did you have health insurance coverage in 2022?"

This should remove the penalty for not having health insurance coverage.

@j-a-sweets 

[j-a-sweets]

Good morning, 

Apologies, im still having the find the questions about health insurance while trying to amend my 2022 taxes I can’t seem to find the health insurance for the entire year question or edit. 

[TomK2023]

TurboTax Online:

1. Open your return.
2. Search for health insurance in the Search box.
3. Click on jump to health insurance link.
4. Answer No if you did not have Marketplace policy.  That section is done.
5. Answer Yes if you did, and continue through interview to enter our info.