topic Health insurance penalty: Can fee be waived if living in UK and paid NHS for insurance? in Get your taxes done using TurboTax

Health insurance penalty: Can fee be waived if living in UK and paid NHS for insurance?

ajzink12 — Tue, 04 Jun 2019 00:17:04 GMT

I am a US citizen that had health insurance from January to August 2015. Then I moved to London, England in September for graduate school and have been living here ever since. I did not have American health insurance for September through December. But I did have to pay for a health insurance fee to England's NHS to cover me while I'm a student here. So I do have insurance. Is there a way I can indicate that on Turbo Tax and avoid the penalty fee?

You do not qualify for a waiver of the Obamacare penalty...

ToddL — Tue, 04 Jun 2019 00:17:06 GMT

You do not qualify for a waiver of the Obamacare penalty for 2015, at least not yet.

NHS insurance does not qualify as minimum-essential coverage for Obamacare. Once you are in the UK for 330 days, however, you qualify for an exemption (resident of foreign possession).

You can't claim that exemption prospectively, you can only claim it after it has been met.

You have two choices:

!. File your return by June 15 (U.S. citizens out of the country on April 15 get an automatic extension of 2 months), pay the penalty and amend your 2015 return after meeting the 330 day substantial presence test to qualify as a foreign resident.

2. Request a 6-month extension (Form 4868) for time to file. Your return must be filed by October 15, 2016, at which time you will have met the substantial presence test. Any tax due must still be paid by April 15.

From Form 4868 instructions: If you are out of the country and a U.S. citizen or resident, you may qualify for special tax treatment if you meet the bona fide residence or physical presence tests. If you do not expect to meet either of those tests by the due date of your return, request an extension to a date after you expect to meet the tests by filing Form 2350, Application for Extension of Time To File U.S. Income Tax Return.

For additional information, here is a link you may want to check: http://www.expatexchange.com/article/4276/Obamacare-911-What-US-Expats-Need-to-Know-About-Coverage--...

I am not an expert in these laws, and I have had a diffic...

drexpat — Tue, 04 Jun 2019 00:17:07 GMT

I am not an expert in these laws, and I have had a difficult time getting clear guidelines to these rules. But, it is not clear to me why the questioner is not considered to have minimum essential coverage in the above situation.
Irs publication 974 states:
The Department of Health and Human Services has designated the following health benefit plans or arrangements as minimum essential coverage.
1.
Employer coverage provided to business owners who are not employees.
2.
Coverage under a group health plan provided through insurance regulated by a foreign government if:
a.
A covered individual is physically absent from the United States for at least 1 day during the month, or
b.
A covered individual is physically present in the United States for a full month and the coverage provides health benefits within the United States while the individual is on expatriate status.

Doesn't #2a potentially apply for September-December in the above situation?