2020 Tax Year for Residents of California
This is a reminder regarding the state of California’s new law requiring residents to purchase qualifying health insurance, and the special provision for members of sharing ministries like Samaritan Ministries. This new law requires residents to document their compliance when filing each year’s California tax return to avoid paying a health care Shared Responsibility Penalty. Residents of California must provide this documentation by completing “Form FTB 3853,” a tax form that must be enclosed with your Form 540, California Resident Income Tax Return. Below, you will find detailed instructions and a sample of completed Sides 1 and 3 of Form 540 and a sample of Side 1 and Side 2 of Form FTB 3853. Please also be sure to consult FTB 3853 Instructions.
This is an informational service only members of SMI and is not tax advice. For tax advice, please contact your tax adviser.