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[#1]

I have a non resident CA tax return to prepare and I get a critical diagnositc that I need to fix. It is in regards to the CA health care exemption. I have her showing as CA nonresident but it is telling me I'm showing she has either full or part year health care coverage. I can't fix what isn't broken, but Lacerte tells me otherwise.

[sherri1329]

I see the exact question that I have, but there is no answer. Does anyone know what to do?

[IntuitAlicia]

@sherri1329 This diagnostic can trigger in your situation if a '2' has been entered in Screen 39.3, CA Health Coverage, Exemptions, & Misc., in the field for "1=entire household covered for all months, 2 = no months".

To clear the diagnostic scroll down to the section "Coverage Exemptions For Individuals Claimed on Returns (Form 3853, Part III)". Here you can select the Taxpayer's name (Spouse, if applicable) from the dropdown and select 'E' from the dropdown options in the column for "Exemption Type (Ctrl+T)".