How will Obamacare affect American expats?

[Winston]

How do people get Obamacare? And how do you tell the local Obamacare office that you don't need it because you live overseas or have healthcare abroad? Anyone research this?

[Winston]

Since none of you guys were able to tell me how Obamacare applies to Expats, and ignored my questions, I went ahead and did the tedious research myself.

Here is how expats can qualify for exemption from paying for Obamacare, aka the Affordable Care Act, provided they meet certain criteria.

https://www.healthcare.gov/exemptions/
http://www.ticotimes.net/2013/11/23/wha ... -obamacare
http://www.expatexchange.com/article/42 ... xes-Abroad
http://internationalliving.com/2013/11/ ... ns-expats/
http://blogs.wsj.com/washwire/2013/10/0 ... w-mandate/

From the IRS:

http://www.irs.gov/uac/Questions-and-An ... -Provision

12. Are US citizens living abroad subject to the individual shared responsibility provision?
Yes. However, U.S. citizens who are not physically present in the United States for at least 330 full days within a 12-month period are treated as having minimum essential coverage for that 12-month period. In addition, U.S. citizens who are bona fide residents of a foreign country (or countries) for an entire taxable year are treated as having minimum essential coverage for that year. In general, these are individuals who qualify for a foreign earned income exclusion under section 911 of the Internal Revenue Code. Individuals may qualify for this rule even if they cannot use the exclusion for all of their foreign earned income because, for example, they are employees of the United States. Individuals that qualify for this rule need take no further action to comply with the individual shared responsibility provision during the months when they qualify. See Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, for further information on the foreign earned income exclusion.

U.S. citizens who meet neither the physical presence nor residency requirements will need to maintain minimum essential coverage, qualify for an exemption or make a shared responsibility payment for each month of the year. For this purpose, minimum essential coverage includes a group health plan provided by an overseas employer. One exemption that may be particularly relevant to U.S. citizens living abroad for a small part of a year is the exemption for a short coverage gap. This exemption provides that no shared responsibility payment will be due for a once-per-year gap in coverage that lasts less than three months.

IRS Tax Guide for US Citizens and Resident Aliens Abroad
http://www.irs.gov/pub/irs-pdf/p54.pdf

How do they know how long you've been out of the US though? Do they go by your exit dates on your passport?

[Rock]

Since none of you guys were able to tell me how Obamacare applies to Expats, and ignored my questions, I went ahead and did the tedious research myself.

Here is how expats can qualify for exemption from paying for Obamacare, aka the Affordable Care Act, provided they meet certain criteria.

https://www.healthcare.gov/exemptions/
http://www.ticotimes.net/2013/11/23/wha ... -obamacare
http://www.expatexchange.com/article/42 ... xes-Abroad
http://internationalliving.com/2013/11/ ... ns-expats/
http://blogs.wsj.com/washwire/2013/10/0 ... w-mandate/

From the IRS:

http://www.irs.gov/uac/Questions-and-An ... -Provision

12. Are US citizens living abroad subject to the individual shared responsibility provision?
Yes. However, U.S. citizens who are not physically present in the United States for at least 330 full days within a 12-month period are treated as having minimum essential coverage for that 12-month period. In addition, U.S. citizens who are bona fide residents of a foreign country (or countries) for an entire taxable year are treated as having minimum essential coverage for that year. In general, these are individuals who qualify for a foreign earned income exclusion under section 911 of the Internal Revenue Code. Individuals may qualify for this rule even if they cannot use the exclusion for all of their foreign earned income because, for example, they are employees of the United States. Individuals that qualify for this rule need take no further action to comply with the individual shared responsibility provision during the months when they qualify. See Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, for further information on the foreign earned income exclusion.

U.S. citizens who meet neither the physical presence nor residency requirements will need to maintain minimum essential coverage, qualify for an exemption or make a shared responsibility payment for each month of the year. For this purpose, minimum essential coverage includes a group health plan provided by an overseas employer. One exemption that may be particularly relevant to U.S. citizens living abroad for a small part of a year is the exemption for a short coverage gap. This exemption provides that no shared responsibility payment will be due for a once-per-year gap in coverage that lasts less than three months.

IRS Tax Guide for US Citizens and Resident Aliens Abroad
http://www.irs.gov/pub/irs-pdf/p54.pdf

How do they know how long you've been out of the US though? Do they go by your exit dates on your passport?

In my experience, the IRS does not monitor your entry and exits into the USA the way it's closely recorded in say Taiwan. In fact, I don't think it's even tracked directly at all. When you leave the USA for another country by air, you do not pass through immigration. If they wanted to investigate you, they would have to go through a major effort contacting Homeland Security to check flight records, etc.

So if you get back into the tax system by filing current and delinquent returns (I would go back 3 years), you just claim residency in Taiwan. They usually just take you on your word and in our case, it's very credible because you have parents living there and a citizenship. I've filed as a bona fide Taiwan resident and never been questioned. So no Obamacare will be needed for you.

[Winston]

In my experience, the IRS does not monitor your entry and exits into the USA the way it's closely recorded in say Taiwan. In fact, I don't think it's even tracked directly at all. When you leave the USA for another country by air, you do not pass through immigration. If they wanted to investigate you, they would have to go through a major effort contacting Homeland Security to check flight records, etc.

So if you get back into the tax system by filing current and delinquent returns (I would go back 3 years), you just claim residency in Taiwan. They usually just take you on your word and in our case, it's very credible because you have parents living there and a citizenship. I've filed as a bona fide Taiwan resident and never been questioned. So no Obamacare will be needed for you.

You mean immigration doesn't stamp an exit mark on your US Passport? But the RFID chip in the passport get scanned right? Maybe that creates the record?

I think you're right. But if they really wanted to investigate me, they could come onto this forum to track me. So anything we write here could be self-incriminating. lol

In filing back taxes, I can just claim I made less than $10,000, in which case I didn't even need to file at all. They probably won't really care either way. So I may not even have to file back taxes at all.

The IRS also says that you have to pay for Obamacare if you are in the US over 30 days, which is lame and stupid.

[Rock]

In my experience, the IRS does not monitor your entry and exits into the USA the way it's closely recorded in say Taiwan. In fact, I don't think it's even tracked directly at all. When you leave the USA for another country by air, you do not pass through immigration. If they wanted to investigate you, they would have to go through a major effort contacting Homeland Security to check flight records, etc.

So if you get back into the tax system by filing current and delinquent returns (I would go back 3 years), you just claim residency in Taiwan. They usually just take you on your word and in our case, it's very credible because you have parents living there and a citizenship. I've filed as a bona fide Taiwan resident and never been questioned. So no Obamacare will be needed for you.

You mean immigration doesn't stamp an exit mark on your US Passport? But the RFID chip in the passport get scanned right? Maybe that creates the record?

I think you're right. But if they really wanted to investigate me, they could come onto this forum to track me. So anything we write here could be self-incriminating. lol

In filing back taxes, I can just claim I made less than $10,000, in which case I didn't even need to file at all. They probably won't really care either way. So I may not even have to file back taxes at all.

The IRS also says that you have to pay for Obamacare if you are in the US over 30 days, which is lame and stupid.

Well my passport does not even have an RFID chip. It's an older one. When do they scan your RFID chip on leaving country, at check-in, at security? Where?

What companies pay your incomes? Cus Google and other US based companies keep records and automatically provide data to IRS about your earnings. Even Airbnb did this with me cus its Bay Area based. But not Travelmob since it's Singapore based. I got some incomes from both those online companies.

[Winston]

Well my passport does not even have an RFID chip. It's an older one. When do they scan your RFID chip on leaving country, at check-in, at security? Where?

What companies pay your incomes? Cus Google and other US based companies keep records and automatically provide data to IRS about your earnings. Even Airbnb did this with me cus its Bay Area based. But not Travelmob since it's Singapore based. I got some incomes from both those online companies.

They scan it when you enter America. But I don't know if they scan it on exit. If they do, they don't tell you. You have to watch them.

Different companies. Yes they do report my income to the IRS, but they don't deduct taxes from it. Some of my advertisers are individuals that pay me directly.

[Rock]

Well my passport does not even have an RFID chip. It's an older one. When do they scan your RFID chip on leaving country, at check-in, at security? Where?

What companies pay your incomes? Cus Google and other US based companies keep records and automatically provide data to IRS about your earnings. Even Airbnb did this with me cus its Bay Area based. But not Travelmob since it's Singapore based. I got some incomes from both those online companies.

They scan it when you enter America. But I don't know if they scan it on exit. If they do, they don't tell you. You have to watch them.

Different companies. Yes they do report my income to the IRS, but they don't deduct taxes from it. Some of my advertisers are individuals that pay me directly.

Yes if they only scan it on entry, that's not enough data to track your time in USA.

If it gets reported to IRS, then they know your existence and may at some stage audit you. Chance of an audit in any given year for someone with such low income like you is probably around 0.5% each year. Eventually, you may just get dinged though.

[Winston]

The Truth About Obamacare - Stefan Molyneux

[Moretorque]

Thanks Winston

[Winston]

In Donald Trump's latest interview with Alex Jones, he says that ObamaCare is finished and won't happen. Is that true? If so, does that mean we can ignore it and not worry about compliance with it?

[WorldTraveler]

In filing back taxes, I can just claim I made less than $10,000, in which case I didn't even need to file at all. They probably won't really care either way. So I may not even have to file back taxes at all.

I'm confused I thought all American citizens had to file taxes. I filed late for a year I didn't work at single day. Is there an income threshold where you don't have to file taxes? I also know expats living outside of the country that file US tax reports every year.