I have an ACA question (well two really)

[karinothing]

And I don't feel like googling (or rather I tried and failed).

ANYWAY

1. How will the government know I have insurance? Do I report it? How do they know I am not lying? Does the insurance company report it?

2. I have a friend who is moving to another country and is working for a well known electronics company. He is only over there for a few years. He will have insurance through them but it is NOT going to be an american health care plan. Yet, he is still an american citizen and paying taxes. Is there a list of approve insurance companies? Will foreign insurance companies count?

TIA!

[redheadbaker]

Jul 10, 2012 14:42:24 GMT -5 karinothing said:

1. How will the government know I have insurance? Do I report it? How do they know I am not lying? Does the insurance company report it?

I believe in Massachusetts, your insurance company sends a letter of certification that you include with your tax return.

[karinothing]

Jul 10, 2012 14:47:45 GMT -5 redheadbaker said:

Jul 10, 2012 14:42:24 GMT -5 karinothing said:

1. How will the government know I have insurance? Do I report it? How do they know I am not lying? Does the insurance company report it?

I believe in Massachusetts, your insurance company sends a letter of certification that you include with your tax return.

Okay, interesting. So I wonder how this works with my friend's insurance company, do foreign companies that operate soley w/in other countries keep up with US tax law?

[msmerymac]

I *think* insurance is self-reporting. There will be a question on your tax document that asks, "did you have qualifying health insurance for the year 2014?" and you check yes or no. In case of an audit, you'd have to prove it. Which shouldn't be hard. I doubt the IRS will automatically want a ton more paperwork being sent in, though.

[karinothing]

Jul 10, 2012 15:07:04 GMT -5 msmerymac said:

I *think* insurance is self-reporting. There will be a question on your tax document that asks, "did you have qualifying health insurance for the year 2014?" and you check yes or no. In case of an audit, you'd have to prove it. Which shouldn't be hard. I doubt the IRS will automatically want a ton more paperwork being sent in, though.

So, the bigger question. Does foreign insurance qualify?

[y4m]

This document suggests the mandate specifically exempts people living abroad:

www.ciab.com/WorkArea/DownloadAsset.aspx?id=2102

[Michelle]

Look at your W2 for 2012. If you have an employer provided plan the value of it will be accounted for in a new line item on your W2. I am sure it will be built into the tax reporting requirement each year but they may not worked out exactly how yet.