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Level 2
February 15, 2022
Question

Can I claim U.S. residency on my taxes?

  • February 15, 2022
  • 3 replies
  • 27 views

Hi, 

I'm a U.S. citizen living abroad in Perú. I live full time in Perú and in the past have filed my taxes as a resident of Perú. Technically, I'm also a resident of Florida; I have a Florida i.d., a Florida address, voting rights, etc. Recently, I wanted to buy health insurance through the Healthcare Marketplace but I have read that you must live in the U.S. to qualify. "Living in the U.S." is defined as being considered a "resident" of the United States for tax purposes. 

So, my question is whether or not I'm considered a "resident" for tax purposes if I'm U.S. citizen but I live all year in another country?

I appreciate all of your help. 

Thanks, 

Kyle

    3 replies

    Alumni - Intuit
    February 15, 2022

    You are considered a US Citizen but a non resident.  Because you are a US Citizen for tax purposes, even though you don't live here, you are taxed like you do live here.  However, since you do not live here, there are certain credits that are limited or not available to you like the additional child tax credit if you had a qualifying child. 

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    kylefitzpAuthor
    Level 2
    February 15, 2022

    Thank you for you response, Vanessa. 

    So, do you know if this applies to the Premium Tax Credit?

     

    Also, maybe you can tell me how many days someone would need to spend in the U.S. per year to be considered a resident for tax purposes?

    Thank you, 

    Kyle

    DawnC
    Employee Tax Expert
    Employee Tax Expert
    February 16, 2022

    If you are an American Citizen and not a resident in any State or Territory, you are a US Citizen with the same rights and obligations as every other US citizen.

     

    Each state is different as far as establishing residency.   There are no general rules for establishing residency in Florida.   Residency is program specific. That is, it is attached to a specific purpose or need, such as taxes or in-state tuition.    You can use your FL address to determine if you qualify for a Marketplace plan.   You have to be enrolled in a Marketplace health plan to qualify to take the Premium Tax Credit.   You can verify that at their website.    If you spend most of your time out of the country, a marketplace plan might not be your best option as the network of physicians and facilities is located in the US.  

     

    The Premium Tax Credit is a tax credit to help make health coverage more affordable when you purchase health insurance from Healthcare.gov or a state Marketplace.   You qualify for the credit if:

     

    • Your health insurance plan is purchased through Healthcare.gov or a state Marketplace
    • Your household income falls between 100% and 400% of the federal poverty level for your household size
    • You don't file as Married Filing Separately (with exceptions for victims of domestic abuse and spousal abandonment)
    • You can't be claimed as a dependent by another person

    If you qualify, you can either take your tax credit as a monthly subsidy to help pay for your insurance costs or claim the entire credit when you file your tax return.  

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