Affordable Care Act

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Affordable Care Act Information for U.S. Citizens Overseas

Affordable Care Act

U.S. citizens living abroad are generally subject to the same individual shared responsibility provision as U.S. citizens living in the United States. Starting in 2014, the individual shared responsibility provision calls for each individual to have minimum essential coverage (MEC) for each month, qualify for an exemption, or make a payment when filing his or her federal income tax return. However, U.S. citizens or residents living abroad for at least 330 days within a 12 month period are treated as having MEC during those 12 months and thus will not owe a shared responsibility payment for any of those 12 months. Also, U.S. citizens who qualify as a bona fide resident of a foreign country for an entire taxable year are treated as having MEC for that year.

All U.S. citizens are subject to the individual shared responsibility provision as are all permanent residents and all foreign nationals who are in the United States long enough during a calendar year to qualify as resident aliens for tax purposes. Foreign nationals who live in the United States for a short enough period that they do not become resident aliens for federal income tax purposes are not subject to the individual shared responsibility payment even though they may have to file a U.S. income tax return. The IRS has more information available on when a foreign national becomes a resident alien for federal income tax purposes. Learn more here.

For general questions about the Act, see the dedicated ACA website operated by U.S. Department of Health and Human Services (HHS). The HHS website includes a link to information about whether U.S. citizens residing abroad are subject to ACA. The Health Insurance Marketplace, sometimes known as the Health Insurance Exchange, is a new way to find quality health coverage. To be eligible for health coverage through the Marketplace, you must live in the United States; must be a U.S. citizen or national (or be lawfully present) and can’t be currently incarcerated.

For tax issues related to ACA, see the ACA page within the IRS website. The IRS site provides further links/webpages, depending on whether you are an individual, employer, or other organization. For more information, see the Question and Answer page for Individuals.

MESSAGE FROM THE INTERNAL REVENUE SERVICE:

On July 19, 2013, the IRS launched a redesigned and updated web page to help financial institutions and foreign governments comply with the Foreign Account Tax Compliant Act.

On Oct. 2, 2012, the IRS implemented clarifying changes to its temporary procedures for issuing ITINs for noncitizens with tax extensions and many foreign students.

On June 22, 2012, the IRS the IRS implemented interim guidelines for issuing ITINs for noncitizens. IRS Strengthens ITIN Application Requirements; Interim Changes Will Protect the Integrity of the ITIN Process

The Treasury Inspector General for Tax Administration (TIGTA) is responsible for oversight of IRS activities and for maintaining integrity in the U.S. Federal tax system. Fraud, waste, and abuse in Federal tax administration are unfair to all U.S. taxpayers and can take a variety of forms. TIGTA’s oversight includes targeted audits, programmatic inspections and evaluations, and both criminal and administrative investigations of potential fraud, waste, and abuse. Examples include:

  • Attempts by taxpayers to bribe IRS personnel;
  • Assaults or threats by taxpayers against IRS employees or facilities;
  • Theft of IRS tax remittances;
  • Impersonation of the IRS organization or IRS personnel in schemes involving the Internet or the mail to obtain personal financial information;
  • IRS employees who misuse their position for personal gain;
  • Outside contractors defrauding the IRS through false claims, deceptive contract methods, and other fraud;
  • Circumstances that could impede or hinder compliance with Federal tax laws and regulations; and,
  • Apparent abuses of taxpayer protection and rights.

Please report any information that you may have related to potential fraud, waste, and abuse to the TIGTA Hotline.

The Office of Foreign Assets Control of the U.S. Department of the Treasury administers and enforces economic and trade sanctions against targeted foreign countries, terrorism sponsoring organizations and international narcotics traffickers based on U.S. foreign policy and national security goals. OFAC acts under Presidential wartime and national emergency powers, as well as authority granted by specific legislation, to impose controls on transactions and freeze foreign assets under U.S. jurisdiction. Many of the sanctions are based on United Nations and other international mandates, are multilateral in scope, and involve close cooperation with allied governments.

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