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  1. #1
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    Default Why would the monitor close this thread

    Why did you close the thread on the person who asked about buying US health insurance if you live in the DR? I think you pulled the plug pre-maturely. Why? To answer the person who originally asked the question, if you are living in the DR for even half the year and you still have a US residence than you would be obligated by law to have Health Insurance from a US provider. 330 days is basically the entire year in the DR. At which point you would have to apply for residency in the DR and most likely would not be maintaining a US address. To the person who asked how the IRS could collect a penalty for not having insurance they simply send you a letter stating the penalty and how much you owe and are obligated to send them a check. If you don't you would be considered a tax evader just as if you didn't file your return properly and needed to pay additional.

  2. #2
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    Quote Originally Posted by LTSteve View Post
    Why did you close the thread on the person who asked about buying US health insurance if you live in the DR? I think you pulled the plug pre-maturely. Why? To answer the person who originally asked the question, if you are living in the DR for even half the year and you still have a US residence than you would be obligated by law to have Health Insurance from a US provider. 330 days is basically the entire year in the DR. At which point you would have to apply for residency in the DR and most likely would not be maintaining a US address. To the person who asked how the IRS could collect a penalty for not having insurance they simply send you a letter stating the penalty and how much you owe and are obligated to send them a check. If you don't you would be considered a tax evader just as if you didn't file your return properly and needed to pay additional.

    Actually, this is incorrect-you are not a 'tax evader' for not paying the penalty because it is not a 'criminal offense' and is merely an administrative 'civil offense' as one would see in Switzerland. There are no criminal charges that can be levied for failure to pay the penalty and it can only be deducted from a tax refund.

    Secondly, the 330 day physical presence can even be 'vacation time' and not even for employment or residency.

    "Generally, to meet the physical presence test, you must be physically present in a foreign country or countries for at least 330 full days during the 12-month period. You can count days you spent abroad for any reason. You do not have to be in a foreign country only for employment purposes. You can be on vacation time."

    Lastly, the question is whether the physical presence test only pertains to the 'Foreign Earned Income Exclusion'. What about the individual that is on vacation time for 331 full days-still maintaining a U.S. address for the tax filing and only has passive income? Can they use the physical presence test to be exempted from the penalty? Appears that there is no answer to this question.

  3. #3
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    It was explained by the moderator.....

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    I actually called and asked about this after the new health laws came out because I still earn income from the U.S. but live in the DR full time. I do sometimes go back to the U.S. for short visits.

    They told me that as long as I was not in the U.S. for more than 35 days out of the year then I was exempt. I didn't matter that I earned U.S. income and it didn't matter why I was out of the country. Bottom line was if you are in the U.S. more than 35 days you have to pay it (unless you fit some other exemption) otherwise you don't.

    If you are close to the 35 days keep in mind that if you are in the U.S. for even one second of a day then that day counts. Also, if you are just transient through an airport then that day counts as well.

    Also keep in mind that by the time you know you have crossed the 35 days threshold it will be too late to get the insurance and consider yourself covered for the year. So if you think you might be close you may want to get it. The penalty is pretty steep if you end up having to pay it. I think it was 2% of your income but I might be mistaken about that. I just remember thinking for myself it would be pretty steep and it prompted me to call and make sure I was going to be OK.

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  7. #5
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    Quote Originally Posted by cjp2010 View Post
    I actually called and asked about this after the new health laws came out because I still earn income from the U.S. but live in the DR full time. I do sometimes go back to the U.S. for short visits.

    They told me that as long as I was not in the U.S. for more than 35 days out of the year then I was exempt. I didn't matter that I earned U.S. income and it didn't matter why I was out of the country. Bottom line was if you are in the U.S. more than 35 days you have to pay it (unless you fit some other exemption) otherwise you don't.

    If you are close to the 35 days keep in mind that if you are in the U.S. for even one second of a day then that day counts. Also, if you are just transient through an airport then that day counts as well.

    Also keep in mind that by the time you know you have crossed the 35 days threshold it will be too late to get the insurance and consider yourself covered for the year. So if you think you might be close you may want to get it. The penalty is pretty steep if you end up having to pay it. I think it was 2% of your income but I might be mistaken about that. I just remember thinking for myself it would be pretty steep and it prompted me to call and make sure I was going to be OK.
    The information I have found, which is listed above, states that even if you are on 'vacation' for over 330 full days, you could be exempt. What is confusing is if you are on 'vacation' outside the U.S. for over 330 full days, but continue to file your return with a U.S. address and with only passive income. The exemption of the 330 day rule is in the Foreign Earned Income Exclusion, which makes it appear that it only pertains to 'earned' income.

  8. #6
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    12. Are US citizens living abroad subject to the individual shared responsibility provision?
    Yes. However, U.S. citizens who are not physically present in the United States for at least 330 full days within a 12-month period are treated as having minimum essential coverage for that 12-month period. In addition, U.S. citizens who are bona fide residents of a foreign country (or countries) for an entire taxable year are treated as having minimum essential coverage for that year. In general, these are individuals who qualify for a foreign earned income exclusion under section 911 of the Internal Revenue Code. Individuals may qualify for this rule even if they cannot use the exclusion for all of their foreign earned income because, for example, they are employees of the United States. Individuals that qualify for this rule need take no further action to comply with the individual shared responsibility provision during the months when they qualify. See Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, for further information on the foreign earned income exclusion.

  9. #7
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    Quote Originally Posted by cjp2010 View Post
    I actually called and asked about this after the new health laws came out because I still earn income from the U.S. but live in the DR full time. I do sometimes go back to the U.S. for short visits.

    They told me that as long as I was not in the U.S. for more than 35 days out of the year then I was exempt. I didn't matter that I earned U.S. income and it didn't matter why I was out of the country. Bottom line was if you are in the U.S. more than 35 days you have to pay it (unless you fit some other exemption) otherwise you don't.

    If you are close to the 35 days keep in mind that if you are in the U.S. for even one second of a day then that day counts. Also, if you are just transient through an airport then that day counts as well.

    Also keep in mind that by the time you know you have crossed the 35 days threshold it will be too late to get the insurance and consider yourself covered for the year. So if you think you might be close you may want to get it. The penalty is pretty steep if you end up having to pay it. I think it was 2% of your income but I might be mistaken about that. I just remember thinking for myself it would be pretty steep and it prompted me to call and make sure I was going to be OK.
    changing planes in a US airport is registered as one day.......

    some may find this hard to believe

  10. #8
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    Quote Originally Posted by william webster View Post
    changing planes in a US airport is registered as one day.......

    some may find this hard to believe
    I hear you. A lot of this nonsense is hard for me to believe but I guess the theory is that if you were sick at the airport you would be taken to a U.S. hospital. I live out of the U.S. Period. If I decide to vacation back in the U.S. for two months I still live outside of the U.S. so in my mind I should still be exempt. The U.S. based health insurance I would have to buy does nothing for me where I live.

  11. #9
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    Quote Originally Posted by jimmythegreek View Post
    The information I have found, which is listed above, states that even if you are on 'vacation' for over 330 full days, you could be exempt. What is confusing is if you are on 'vacation' outside the U.S. for over 330 full days, but continue to file your return with a U.S. address and with only passive income. The exemption of the 330 day rule is in the Foreign Earned Income Exclusion, which makes it appear that it only pertains to 'earned' income.
    I do file my return with a U.S. mailing address (my mail forwarder service) and did mention that to them. They told me it didn't matter what address I used or why I was out of the country so even a vacations would qualify. That is how I understood it and I re-asked the question a few different ways to make sure I was really understanding. Of course this is tax law and what one person says or what you find printed in one code may be contradicted in another. Gotta love the IRS.

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  13. #10
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    Quote Originally Posted by LTSteve View Post
    Why did you close the thread on the person who asked about buying US health insurance if you live in the DR? I think you pulled the plug pre-maturely. Why? To answer the person who originally asked the question, if you are living in the DR for even half the year and you still have a US residence than you would be obligated by law to have Health Insurance from a US provider. 330 days is basically the entire year in the DR. At which point you would have to apply for residency in the DR and most likely would not be maintaining a US address. To the person who asked how the IRS could collect a penalty for not having insurance they simply send you a letter stating the penalty and how much you owe and are obligated to send them a check. If you don't you would be considered a tax evader just as if you didn't file your return properly and needed to pay additional.
    I agree that the thread should not have been closed. It is about people living out of the US and how they are or are not obligated by the Affordable Care Act or Obamcare.

    Not as I understand the situation,but of course our President makes up things as he goes along. The only way I understand they can collect the penalty from a non-compliant Obamacare evader is to withhold money from a Tax refund. The IRS of course loves to send out threatening letters so I would no be surprised at anything that happens.

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