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Screen 39 > California Premium ... > Enter a 1 for 12 month coverage
Answers are easy. Questions are hard!
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The program will automatically exempt nonresidents from the penalty without any entry. Are you seeing anything different?
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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?
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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.
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If they are a CA resident, I don't think they will qualify for the living overseas exemption.
I'll let itonewbie and our CA preparers weigh in.
The more I know the more I don’t know.
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It is possible for CA residents who fail the safe harbor but qualify for foreign earned income exclusion to still meet the exemption for individual mandate because §10965.3 of CA's Insurance Code adopts the definition of MEC under IRC §5000A.
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