Thursday, October 3, 2013
IRS, Questions and Answers on the Individual Shared Responsibility Provision:
12. Are US citizens living abroad subject to the individual shared responsibility provision?
Yes. However, U.S. citizens who live abroad for a calendar year (or
at least 330 days within a 12 month period) are treated as having
minimum essential coverage for the year (or period). These are
individuals who qualify for an exclusion from income under section 911
of the Code. See Publication 54
for further information on the section 911 exclusion. They need take no
further action to comply with the individual shared responsibility
Wall Street Journal, U.S. Citizens Abroad Avoid Health-Law Mandate:
The Affordable Care Act requires most Americans to carry health insurance or pay a tax penalty–and there’s a reason we say “most” rather than “all.”
Americans who live abroad at least 330 days of the year will be treated as if they have qualifying insurance coverage and won’t owe any tax penalty, according to the Internal Revenue Service. That’s true regardless of whether the U.S. citizen actually has health insurance in the country where he or she lives.
The IRS reasons that it would be unfair to force Americans living abroad to buy a policy on one of the new health-insurance exchanges that opened Tuesday, because most domestic policies don’t cover anything more than emergency care overseas.