California Nonresident Health Coverage Penalty

[BobKamman]

Clients are full-year California nonresidents.  They haven't lived in California for five years but their state pension keeps withholding California tax -- I tell them every year to make them stop, but they are rather blase about it.  They filed a 540NR, indicating both were full-year nonresidents, just to get the refund.  Now they get a bill for $1,600 because they did not submit Form 3853, Health Coverage Exemption and Individual Shared Responsibility Penalty.  "Or, indicate you had health coverage."  Where do you do that on a 540NR?  I know there's a box to check on the 540.  What's the best way to deal with the Sacrocrats to resolve this?

[Just-Lisa-Now-]

The Healthcare Worksheet, mark it NO, then you can link to the 3853. It should automatically pull their names/SSNs into the 3853 (scroll down down down) and input the E for Non resident exemption.

Looks like if you mark it YES, the 3853 is all blank.

[BobKamman]

Online 540NR instructions for amending a return state, "Check the box at the top of Form 540NR indicating AMENDED return and follow the instructions."

There is no box at the top of the Form 540NR that I printed out from ProSeries. 

FTB hangs up on phone calls because they don't have available staff.

[Just-Lisa-Now-]