Expats and the Affordable Care Act (Obama care)

Written by Gregory A. Fallon on Wednesday, 01 July 2015.

Expats and the Affordable Care Act (Obama care)

Many US expatriates have been asking about how the Obamacare penalty will apply to them.

If you can take the IRC 911 foreign earned income exclusion (Form 2555) as a bonafide resident or under the physical presence test (330 days), you will be exempted from the Obamacare penalty. Also, taxpayers working abroad that are covered by the Group plan of a US employer or covered by medicare are exempt from the penalty.

Taxpayers who work abroad temporarily for a few months and then return to the US are not exempt and will need to maintain health insurance in order to avoid the penalty. However, taxpayers who only lack coverage for one month in a year do not need to pay the penalty. To calculate your penalty click the link below.


Healthcare Penalty Calculator

Nonresidents who are not permanent residents (usually 183 days or more) are not required to obtain health coverage.

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About the Author

Gregory A. Fallon

Gregory A. Fallon

Gregory Fallon is an Enrolled Agent (EA) and as such is admitted by the Treasury Department to practice (represent clients) before the IRS. Gregory has a Master's of Science in Taxation (MST) from Golden Gate University and a B.S. in Business Administration from Northeastern University in Boston, MA.  Gregory is also a Certified Public Accountant (CPA) in Massachusetts and a member of the AICPA.

Gregory began his career in public accounting as an auditor and tax analyst for a regional CPA firm in Boston, MA. In early 2006 he moved to Santa Monica, CA to pursue an opportunity with a national defense contractor.Gregory's knowledge of various federal and state tax laws  has allowed him to create and implement  customized tax strategies for clients.  Currently, Gregory focuses on international tax planning and preparation for individuals and small to mid size firms.