Obamacare and U.S. Expats
American Expats should know these important facts about Obamacare. Obamacare is also called The U.S. Patient Protection and Affordable Care Act (PPACA) and was supported by the Supreme Court in June 2012. For all U.S. citizens it will be mandatory to carry affordable healthcare coverage or pay a penalty tax. The annual penalty tax is $95 on individuals who do not carry adequate insurance coverage. This program starts on January 1, 2014. By 2016, the penalty tax is slated to increase to $695.
How will this affect you, an American Expat, while you are living overseas?
As of right now, Americans living overseas will not be able to purchase healthcare coverage and you will not be obligated to pay the penalty fee. Obamacare is focused on domestic insurance plans and it is only available to residents of the United States.
Americans living overseas who are eligible for the Foreign Earned Income Exclusion are supposed to have the mandatory amount of health insurance. However, if you do not have the mandatory insurance coverage you will not be charged a penalty fee.
Questions? Call us today 877-382-9123. Expatriate Tax Returns is here to help you!
