How to resolve diagnostic 55322 in Lacerte

This diagnostic can trigger 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"

Because California has a state-level health coverage mandate, selecting the no coverage option triggers a diagnostic message. Lacerte is flagging this because you may need to claim an exemption from the mandate or pay a penalty. For more information on how to do this, see here.

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).