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Level 1

Does my daughter need to pay the insurance penalty if she moved to the UK in 2017, worked in the UK in 2018 w/insurance and is claiming the foreign income exclusion?

My daughter got married in October 2017 in the UK and has permanent residence in the UK. She worked in the UK three months in 2018 with health insurance and is claiming the Foreign Earned Income Exclusion. How do I respond to Turbo Tax question "Did You Have Health Insurance Coverage in 2020"?

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Level 2

Does my daughter need to pay the insurance penalty if she moved to the UK in 2017, worked in the UK in 2018 w/insurance and is claiming the foreign income exclusion?

I have no idea why or where the software is coming up asking if she had health insurance coverage in 2020.  I haven't seen that screen before.  Please see if you can skip that question.

The tax penalty for not having health insurance in 2018 can be waived if the individual was a U.S. citizen or resident but lived in a foreign country or U.S. territory for at least 330 days within a consecutive 12-month period that includes all or part of 2018.

Or she can claim an exemption if she is a US citizen who is a bona-fide resident of a foreign country for an entire calendar year. For this exemption she can return to the US for as many trips as she wants.

 


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Level 2

Does my daughter need to pay the insurance penalty if she moved to the UK in 2017, worked in the UK in 2018 w/insurance and is claiming the foreign income exclusion?

I have no idea why or where the software is coming up asking if she had health insurance coverage in 2020.  I haven't seen that screen before.  Please see if you can skip that question.

The tax penalty for not having health insurance in 2018 can be waived if the individual was a U.S. citizen or resident but lived in a foreign country or U.S. territory for at least 330 days within a consecutive 12-month period that includes all or part of 2018.

Or she can claim an exemption if she is a US citizen who is a bona-fide resident of a foreign country for an entire calendar year. For this exemption she can return to the US for as many trips as she wants.