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KelseaV
New Member

California Form 3895 Isn't Generating Form 3849

I input my 3895, but it doesn't seem to be generating the 3849 form.  

 

I did try this on 2/12 and 2/13 and it still shows that I owe money to California for health premiums. 

 

I have talked to both the California Health Marketplace to verify my 3895 form is correct and also the free tax help that they have available.  I have been told by both parties that based on the information on the form, I should not owe California any money for health subsidy premiums.  There are two reasons for this.  One is that I'm Native American. So, there's a caveat that even if I underestimate my income, I don't have to pay back the subsidy.  Two, even if I wasn't Native American I'm a sole proprietor and I estimated my business would make 6 figures this year, but instead lost 3K due to COVID. They told me that the only reason it should be showing that I owe is if it hasn't been reconciled with the 3849 form.  Because of my Native American tribal status I wouldn't owe regardless. So the only logical explanation they could come up with is that TurboTax isn't reconciling the income with the 3849 form. 

 

I spent two hours on a support call on the 12th and an additional 2 hours on a support call today and the Turbotax experts couldn't figure out what was going on.  Reaching out here to see if anyone else can help a girl out. 

 

Thank you! 

3 Replies
rfisher71
Level 2

California Form 3895 Isn't Generating Form 3849

@KelseaV   I don't know exactly what is wrong in your case.  There was a California program update released 2/17, perhaps that helped.  There still is a bug in TurboTax's California Form 3849 because I have two Form 3895s and TurboTax only uses the last form 3895 entered (instead of both) to generate Form 3849.  I downloaded the paper (pdf) form from the California FTB and filled it out by hand to verify that I have done everything correctly.  I have posted the problem twice on this forum and talked with tech support once to describe the problem in detail but it hasn't been fixed. My advice is to be patient (you don't need to file until 4/15 or so) and keep checking to see if it gets fixed.  Every so often you could delete your Form 3895 and re-enter it to see if that helps.  I am not sure exactly how TurboTax updates but it might only update when new information is entered.

 

One thing that I will warn you about (not sure if it will affect you personally).  If you have a California premium subsidy that is not listed on the federal form 1095A, then TurboTax will NOT use the California Form 3895 information on your federal return to reduce the amount of health insurance premiums paid on the medical expense worksheet and Schedule A.  I don't qualify for federal premium assistance but I did for California premium assistance and TurboTax did NOT take into account the amount of California premium assistance when calculating my medical expenses.  I had to manually enter the amount of California premium assistance as "insurance reimbursement" on my federal medical expense form in order to prevent counting the California premium assistance as a medical expense.

KennyK
Returning Member

California Form 3895 Isn't Generating Form 3849

I had the same issue.  1095-A had NO premium assistance so the feds. gave me a refund, but on the Calif. form   3895 it listed the premium assistance so Calif. is now saying I owe money to them.  Is this correct?  The Fed. $ does outway the CA money due.  Why would you have to enter the premium assistance on the Fed. tax return if it seems that the $ came from the state and not from the Feds.?

 

rfisher71
Level 2

California Form 3895 Isn't Generating Form 3849

California has their own premium assistance above and beyond the federal premium assistance.  That is why for 2020 California has their own form 3895.  If your income is between 400 - 600% of the FPL (Federal Poverty Limit) then you would qualify for California assistance but not Federal.  I am not well versed enough in all of the income limits to know if you could qualify for both if your income is between 135 - 400% of the FPL.  I definitely believe that it would be possible to qualify for Federal subsidy (which apparently you did not have deducted from your health insurance premium, lines 21c - 32c on 1095A) and have had too much California subsidy (which apparently must have been deducted from your health insurance premium, lines 6c - 17c on 3895).  This would result in the situation that you describe. The only way to know for certain (if you don't think that TurboTax is doing it correctly) is to go through the California Form 3849 by hand following the instructions.  You can download the forms and instructions from the FTB.  This is the first year that California has provided a premium subsidy and I believe that California is the only state to provide subsidies to it is probably confusing to the TurboTax software writers.

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