topic Re: WA resident but California wants me to pay penalty for no health coverage 2021 in State tax filing

WA resident but California wants me to pay penalty for no health coverage 2021

eulci — Mon, 09 Mar 2026 09:21:24 GMT

Hello,

Turbotax keeps telling me that I need an exemption from paying a penalty for existing in California for 90 days without having health coverage. I am not a resident of that state, and my state has no penalty so I'm not sure what I need to do to move through the filing.

Re: WA resident but California wants me to pay penalty for no health coverage 2021

hbl3973 — Wed, 02 Mar 2022 18:23:22 GMT

eulci,

According to CA Franchise Tax Board publication 1031:

https://www.ftb.ca.gov/forms/2021/2021-1031-publication.pdf

your situation does appear to clearly fall under the nonresident category even though you were living in CA for some temporary purpose. I assume you filled in the CA nonresident 540-NR info listing the specific dates you were in CA and it is those months that are under focus. What we want to accomplish is to get exemption code "E" into the relevant health coverage form.

I will fire up TurboTax on my computer and see if I can replicate your situation and provide you the guidance your are requesting. Stay tuned.

Re: WA resident but California wants me to pay penalty for no health coverage 2021

hbl3973 — Wed, 02 Mar 2022 19:15:58 GMT

eulcie,

Took a while to get TurboTax updated and fired up, but I was able to mock up a return with a CA W-2 and a non-CA state of residency. Once finished with the Federal portion, I moved into the State area and worked on California. The key screen is the one that says:

Residency Information During 2021

Answering "No" to the first two questions about becoming a CA resident or CA nonresident in 2021 and "Yes" to the nonresident all of 2021 question worked to waive the penalty when I checked the no health insurance option. Left the "Did you have a situation that waives the tax penalty for being uninsured" blank and pressing Continue brings up the message "Based on you situation, the penalty has been waived!"