AMERICAN EXPAT AFFORDABLE HEALTHCARE ACT AND TAXES

GMC(SW) wrote:

I have been looking at the website for Healthcare.gov and have failed to find any guidance for Expats...

You can apply for an exemption, but I can find none for Expats.

GMC,

The following is from Artio Partners, a Chicago-based firm serving Expats.  For more on this company and their extensive offerings regarding the tax matters you mentioned, see my subsequent post on this thread.
    cccmedia in Quito

Who is eligible to apply for a minimum health coverage under Affordable Care Act...

The PPACA is currently available only to residents of the United States and it covers only domestic insurance plans...Obamacare insurers cannot discriminate against individuals with pre-existing conditions.  Consequently, Americans living abroad with pre-existing health conditions cannot take advantage of this opportunity and they cannot buy a domestic (U.S.) insurance plan.

GMC(SW) wrote:

If there are any tax savvy Expats out there please feel free to contact me ...to utilize your services.

Now, about your taxes GMC.

Chicago-based Artio Partners (artiopartners.com) is a "leading" boutique Expat CPA firm specialising in Expat tax consulting and preparation services for U.S. Expats and foreign nationals.

Disclaimer:  I have not personally availed myself of their services since also moving to Quito last year.

cccmedia, Quito

Since you will be living out of the USA for all of 2014 there is no penalty on your 1040 for not having health coverage or having any foreign health coverage.

Thank you both for the info.

My only question at this point would be, how will the IRS know, that I was not inconus during the 2014 tax year?
I know that may sound like a silly question, but I have learned that the only silly question is the one you do not ask.. Furthermore when dealing with the IRS I prefer to leave as little as possible to chance. That comes from 22 years of active Military service, if you don't ask the questions people assume you know everything and you are held accountable. So ignorance is no excuse...

As mugtech pointed out I will have been out of the country for the entire tax year. I know that, my family knows that, even my bank knows that. I am trying to figure out, how the IRS will establish that fact. I want to have any documentation they might ask for to verify my claim.

This is how I envision the process; I file 2014 taxes, they cannot verify I have "obama care", I am not in their well oiled database. So they, in turn decide to keep my refund, regardless of the legality of the whole thing. Then I, many miles to the South must promptly jump through multiple hoops to prove my case and attempt to collect my refund.

Should this scenario occur? I hope not, I have been a good little American all my life, I pay my taxes and willingly sacrificed 22 years of my life, in the defense of democracy world wide.

Could this scenario occur? yes.. This is why I am attempting to stay ahead of the power curve and anticipate what "they" may do, and be ready for it.

GMC(SW) wrote:

As mugtech pointed out I will have been out of the country for the entire tax year. I know that, my family knows that, even my bank knows that. I am trying to figure out, how the IRS will establish that fact. I want to have any documentation they might ask for to verify my claim.

Your passport stamps.

In order to be considered a foreign resident for tax purposes, you may not be in the US for more than 35 days a year. The physical presence test. Just be sure if you visit the US you never exceed the 35 day limit.

Noted, and thank you.

If I understand the process right, the IRS will bounce a return off the Gov. Health Care data bank. If your information does not come up, and there is no exemption on file they will hold your return. Having said that, they do not, as far as I know have a copy of my passport, so how would they be able to verify where I am, or have been without my having to provide it to them after the fact?

Please, if you can elaborate on the process to be used, I tried in vein to understand the system as stated on the health care site as well as the IRS site. I seem to be having trouble connecting the dots, in my mind that spells potential problems. Then again I may be suffering from data overload, and the answer is as plain as the nose on my face.

In any case if you, or anyone else has a handle on how this is going to work please share.

Thanks Again.

GMC(SW) wrote:

Thank you both for the info.

My only question at this point would be, how will the IRS know, that I was not inconus during the 2014 tax year?
I know that may sound like a silly question, but I have learned that the only silly question is the one you do not ask.. Furthermore when dealing with the IRS I prefer to leave as little as possible to chance. That comes from 22 years of active Military service, if you don't ask the questions people assume you know everything and you are held accountable. So ignorance is no excuse...

As mugtech pointed out I will have been out of the country for the entire tax year. I know that, my family knows that, even my bank knows that. I am trying to figure out, how the IRS will establish that fact. I want to have any documentation they might ask for to verify my claim.

This is how I envision the process; I file 2014 taxes, they cannot verify I have "obama care", I am not in their well oiled database. So they, in turn decide to keep my refund, regardless of the legality of the whole thing. Then I, many miles to the South must promptly jump through multiple hoops to prove my case and attempt to collect my refund.

Should this scenario occur? I hope not, I have been a good little American all my life, I pay my taxes and willingly sacrificed 22 years of my life, in the defense of democracy world wide.

Could this scenario occur? yes.. This is why I am attempting to stay ahead of the power curve and anticipate what "they" may do, and be ready for it.

GMC,

Your questions are valid, your points are cogent.

You're right, tax matters are complex.  However, I don't know any tax lawyers on this blogsite, and you're planning to hire the firm I mentioned or some other Expat tax professional.

I would rely on the advice of my experienced tax professional -- and by experienced, I also mean a specialist in Expat matters.

cccmedia in Quito

We have a tax guy and I've talked to him extensively about this, in preparation to be gone.

There is no reason to believe that your tax refund might be withheld in lieu of Obamacare payment unless you provide proof of your foreign presence. If the IRS wishes proof, they will notify you and you can then forward a copy of your passport showing the US entry and exit stamps.

We lived overseas for 5 years and filed the Foreign Earnings Tax Exemption form (whatever it's called), and never once were we contacted by the IRS requiring proof of US non-presence.

Moreover, the government and its myriad three letter security agencies have access to all US passport information, they know where you weren't. They have records of all US entries and exits.

The government probably knows more about you than you do.

GMC(SW) wrote:

My only question at this point would be, how will the IRS know that I was not inconus during the 2014 tax year?...from 22 years of active Military service, if you don't ask the questions people assume you know everything and you are held accountable.

Did somebody say, learn something new every day....

That word "inconus" is military-speak for "inside the continental United States." (The Free Dictionary)

cccmedia in Quito