It depends.
If you are a nonresident alien, you will not have a penalty because nonresident aliens are not required to have minimum
coverage under the ACA/Obamacare requirements.
If you
are a nonresident alien, you will need to file a Form 1040NR to report your US
source income. TurboTax does not support Form 1040NR.
Click this link for more information from the IRS on US Tax Guide for Aliens
Additionally, if you meet the green
card test or the substantial
presence test, and are considered
a dual-status alien for 2016, you may be able to claim an additional
exemption:
You are allowed a short gap exemption for coverage shortfalls
during the year (You went without coverage for less than three consecutive
months during the year. You are only allowed one short gap exemption per year)
You will claim or report coverage exemptions on Form 8965, Health Coverage Exemptions, and file it with your Form
1040, Form 1040A, or Form 1040EZ. TurboTax will guide you under the health
insurance section and ask if you meet any exemptions.
If you are a US citizen or resident alien, you may be able to claim an exemption for your
Egyptian health insurance but this Egyptian health insurance must meet the minimum essential coverage to qualify for a coverage exemption.
(If you are a nonresident alien, nonresident aliens are not required to
have minimum coverage under the ACA/Obamacare requirements.)
For this purpose, minimum essential coverage includes
a group health plan provided by an overseas employer and certain expatriate
health plans. (You may want to contact your Egyptian Health Insurance provider to
check if you meet this requirement). 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 means that you went without coverage
for less than three consecutive months during the year).
If your Egyptian
Health Insurance meets the minimum requirements of the ACA, when you are
entering your health insurance information into TurboTax, you can state that
you had healthcare for the entire year
You will claim or
report coverage exemptions on Form 8965,
Health Coverage Exemptions, and file it with your Form 1040, Form 1040A, or
Form 1040EZ. TurboTax will guide you under the health insurance section and ask
if you meet any exemptions.
Please Note that U.S. citizens who are
physically present in a foreign country or countries for at least 330 full days
during any period of 12-consecutive months are exempt from the individual
shared responsibility payment for any month in the tax year that is included in
that 12-month period. In addition, U.S. citizens who are bona fide residents of
a foreign country (or countries) for an uninterrupted period which includes an
entire taxable year are exempt for that year.
Click these links
for more information about the Bona
Fide Residence Test or the Physical
Presence Test
Click this IRS link
for more information about US
Citizens and Resident Aliens Living Abroad
Click this IRS link
for more information about the Shared
Responsibility Provision
