Affordable Care Act (Obamacare) Enrollment Requirement for Expats with Tourist Visa

[gray42]

I haven't stepped foot in the USA for 3 years as I've been traveling throughout Southeast Asia, which means I've only had tourist visas. Obviously I don't want to pay for expensive health insurance I can't use, but with only a tourist visa I don't qualify for the Bona-fide Residence Test. Will I be able to show I haven't been physically present in the US by simply showing my passport with all of my visas from Thailand, Laos, Cambodia, etc.? On IRS.gov it says this:

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.

U.S. citizens who meet neither the physical presence nor residency requirements will need to maintain minimum essential coverage, qualify for an exemption or make a shared responsibility payment for each month of the year. For this purpose, minimum essential coverage includes a group health plan provided by an overseas employer. One exemption that may be particularly relevant to U.S. citizens living abroad for a small part of a year is the exemption for a short coverage gap. This exemption provides that no shared responsibility payment will be due for a once-per-year gap in coverage that lasts less than three months.

Thanks.

[lovetotravel]

The main test for you will be living outside the US for more than 330 days. The government can track that a variety of ways without having to look at your passport.

http://www.budgettravel.com/blog/a-rare-peek-at-homeland-securitys-files-on-travelers,10313/

[beechguy]

I agree with the above, use the physical presence definition, not bona fide residence.

[Jingthing]

You are exempt. But if you start spending large amounts of time back in the U.S. the game changes for you. Also exempt are people who have income lower than the filing threshold amount.

[Pib]

The info in the last part of this webpage link could help explain how the IRS might validate if you have been outside the U.S. for 330 days...they can use a variety of methods as talked about in the paragraph titled "Important Updates for 2013" where they talk about passport data review, obtaining a report from Homeland Security to determine your time in the U.S., etc. I have no doubt if the IRS decided to validate/audit/confirm a person was out of the U.S. for at least 330 days that the IRS has forms they mail you to complete and return to prove//validate the 330 day thing...plus they are doing some of their own computer checks. I expect the burden of proof would ultimately be on the individual to satisfy the IRS "if" the IRS decides to question/validate a person claim he was out of out of country for at least 330 days.

Edited April 2, 2014 by Pib