Health Care

Health Care

How do health care reform and taxes connect? The Affordable Care Act is single largest change to the tax code in two decades. Find help navigating the complexities of the new health care legislation, Medicare, Medicaid and other medical deductions.

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Registered: ‎04-15-2017
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ACA requirements for US citizens abroad

My daughter, who is a US citizen, is self-employed and works and resides full-time abroad. She has health coverage in the country where she works, which she is required to obtain. She visits the US for vacation for less than 1 month each year. Is she exempt from having to purchase ACA health insurance in the US? What should she indicate in her federal tax return?

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Posts: 5,063
Registered: ‎02-23-2016

Re: ACA requirements for US citizens abroad

Hi nebrij79,

 

Welcome to the H&R Block community.

 

Yes, she is exempt from the penalty for not having insurance for more reasons than one.  Since she is no doubt working & living in another country for more than 330 days out of the year she qualifies for the exemption for citizens & other persons living abroad.  All she needs to do is fill out Form 8965 and enter exemption code "C" in the appropriate box.

 

If you have any other questions I'll be glad to help.

 

Louis,

Senior Tax Advisor (Tampa, FL)

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Posts: 2
Registered: ‎04-15-2017

Re: ACA requirements for US citizens abroad

LOUIS,

 

Thank you very much for your reply. I had the feeling that she was exempt but I was not sure.