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chishingt
New Member

Residing out of country for 330 days, so no healthcare penalty?

Hi, I left the US on August 16th, 2016 after quitting my job for traveling in Hong Kong and China. My last day of coverage by previous employer is August 5th, 2016, so the entire month of August I am covered. I plan on returning 330 days later (July 12th, 2017 and after, and I will not visit the US in between). I just filed my taxes today and checked the box for residing outside the country, so the filed 1040 does not have penalty for the lack of healthcare. I just wanted to send a question here to make sure I am not wrong in doing so. Thank you!
1 Reply
MaryK1
Level 9

Residing out of country for 330 days, so no healthcare penalty?

For foreign earned income exclusion you must wait until you qualify to file so you would have to file an extension (beyond the automatic 2 month extension) However, if it is just for the health insurance penalty, you can indicate out of the country as an exemption if you reasonably believe that you will qualify--just know if you move back early you may have to pay the penalty (but hopefully the law will not apply anyway)

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