Full-year nonresidents filing Form 540NR, while not subject to the California MEC Individual Mandate, nonetheless are subject to the same reporting requirement as residents. Thus, a nonresident will need to complete Form 3853 and indicate the nonresident exemption to the penalty for the year.
How do I complete the exemption in the program?
The exemption can be found by following this path:
- State Section
- Add or Edit CA Non Resident Return return
- Healthcare Coverage Forms
- Health Care Shared Responsibility Tax (Form 3853)
- Part III - Coverage Exemptions
- Choose the path for the household members that were or were not claimed on the return
- Choose the exemption "Non Resident or Part-Year Resident"