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canidmajor's avatar

Does a US citizen residing in Canada pay the tax penalty for not having a healthcare plan?

Asked by canidmajor (3891 points ) May 8th, 2014

I’m asking for a friend who has been living and working in Canada for a year or so and is about to marry a Canadian. She has significant investments in the US on which she pays income tax. She was wondering off hand if being on the national health plan counted in the US for the purposes of avoiding the tax penalty.

An accountant will be consulted, we were just curious at the moment. I figure that Fluther probably has some CPAs that might be willing to answer.
Thanks.

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2 Answers

bolwerk's avatar

AFAIK the requirement is to have a plan while resident in the USA, so no.

JLeslie's avatar

The way I understand it, no she will not have to pay a penalty. I see @bolwerk says the same. The old tax laws, I have no idea what they say now ( know they have changed) when my husband lived and worked out of the country was if you were only in the US 30 days or less in a year then you were exempt out paying taxes on the first $75k of earnings. Other tax obligations also are eliminated when a citizen lives outside of the country, but they need to watch how many days they come to visit of they visit, so I think it is important she research the laws well one taxes and penalties. The IRS website has a lot of information and there are accountants who specialize in doing taxes for expats. I recommend utilizing an accountant who works with this circumstance all the time.

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