CA Health Insurance Tax Penalty

[waynito]

My son moved from CA to TX on 1 April 2022. I have to say that they had health coverage the entire year, even though they did not in order to get TTax to not penalize them for the months in TX with no insurance. I have gone over the residency questions carefully many times. IMHO TTax has a bug.

[Bsch4477]

Part time California resident gets an exemption for months as a non-resident. 

[ErnieS0]

If your son is not covered under Marketplace insurance, it doesn’t matter if you indicate that you were covered all year.

Insurance coverage is reported on a worksheet that is not transmitted to California.

If your son had Marketplace insurance, TurboTax will create Form 3853 in which case, check the months your son was covered by California insurance.

On “Did you have a situation that waives the tax penalty for being uninsured?” select Resident of foreign country or U.S. territory.

The FTB exception category is “Certain citizens living abroad/residents of another state or U.S. territory” so a resident of another state falls in this category.

On “Select the months you lived in another country” enter the months your son lived in Texas. TurboTax should say the penalty has been waived.

See Exemptions in Health care mandate.

[waynito]

Yeah, I know. I checked with the CA Franchise Tax Board. Trouble is, you gotta lie to TTax to get the answer to come out correctly.