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