Many expats have been discussing the likely impacts of the recently passed US health-care legislation on people who live and work outside the USA. The law now requires that US Citizens meet several requirements to be exempt from getting health insurance or paying penalties: a foreign “tax home” and foreign residency.
Background: Under the new health care bill, Section 401 of Subtitle A requires all US citizens to obtain health care coverage. The penalties for failing to buy insurance are steep, up to 2.5% of AGI, capped at a threshold equal to the average premiums for health care available. Applicable penalties will be collected on the individual’s future tax returns.
Can you meet the US Govt’s requirements?
. . .
One final question remains:
Why is this article listed under Science & Health vs. Pesos, Politics & Propaganda?
* * * *
Full text of article can be read at: (or access under Science, Tech and Health (see header) )
Health Care Insurance Requirements for US Expats
* * * *
Mexico: “Nothing can be organized but everything can be arranged…”
* * * *
Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry
Read-on MacDuff . . .
2.5% AGI? What is that?
2.5% AGI is two and ½ percent of your Adjusted Gross Income (AGI). Your AGI amount is almost always entered on the last line of the first page of form 1040 of your tax return, and it is also repeated as the first line at the top of your second page (on the back side of) of your main IRS 1040 form.
AGI is line 36 of form 1040NR, line 4 of form 1040EZ, line 22 of form 1040A, line 38 of form 1040, etc for TY 2009.
The line numbers might change for TY 2010…