How will Obamacare affect IN taxes next year?

[wise_rita]

After reading this article: www.pbs.org/newshour/rundown/uninsured-u-s-will-cost-2015/ I'm wondering how INs will pass the health insurance test?  I do the 2555ez and I guess they'll deduce from the Bona Fide Residence Test that someone who doesn't live in the USA does not need American health insurance?

In other news my boss is American, moved to Australia 15 years ago and hasn't filed USA taxes since. 

[GilliC]

I assumed we would be exempt, so I went through the TurboTax Exemption Checker that they mentioned. Looks like this is the case: "Spending at least 330 days of the year abroad means you can waive the penalty when you do your taxes."

However, I plan to just check the box that says I have health insurance. Because I do. The Norwegian government gives it to me. (And if you want to split hairs, my travel insurance covers me when I'm in the US.)

[wise_rita]

Cool, thanks!

[GilliC]

Dec 29, 2014 20:27:34 GMT -5 wise_rita said:

In other news my boss is American, moved to Australia 15 years ago and hasn't filed USA taxes since. 

Also, this kind of thing makes me stabby, since I'm being audited. I take the trouble to send them my 20+ pages of paperwork every year (for which I receive pretty much nothing) and now I have to spend hours accumulating 200 pages of supporting documentation to prove that I really do live in Norway and pay local taxes. Meanwhile, if I just never filed, I wouldn't have to bother with the entire afternoon it takes to file each year OR the massive time and shipping costs of the audit.

Thanks, Uncle Sam, for rewarding the people who just ignore your asinine tax laws.

[rupertpenny]

Dec 30, 2014 4:46:54 GMT -5 GilliC said:

Dec 29, 2014 20:27:34 GMT -5 wise_rita said:

In other news my boss is American, moved to Australia 15 years ago and hasn't filed USA taxes since. 

Also, this kind of thing makes me stabby, since I'm being audited. I take the trouble to send them my 20+ pages of paperwork every year (for which I receive pretty much nothing) and now I have to spend hours accumulating 200 pages of supporting documentation to prove that I really do live in Norway and pay local taxes. Meanwhile, if I just never filed, I wouldn't have to bother with the entire afternoon it takes to file each year OR the massive time and shipping costs of the audit.

Thanks, Uncle Sam, for rewarding the people who just ignore your asinine tax laws.

My H is a tax attorney and mostly does tax compliance for US citizens living abroad and it isn't that easy to just ignore taxes! He would agree that the US makes it too hard to be compliant though. I have two US citizen sisters who live abroad though and I can't convince either of them that they need to file returns even though they live in high tax countries (UK and Iceland) and likely would not owe anything. Maybe they think having my H for a BIL will get them out of any future problems. 

Anyway, I haven't thought about any healthcare issues, but I also have state supplied healthcare so I hope I'm good. 

[GilliC]

I know it's anecdotal, but does anyone KNOW anyone who has gotten in trouble for not filing while abroad? We all know plenty of people who don't file and never have issues, so shouldn't we know more people who got caught? The US talks a good game that it finds these people, but I've certainly never seen it happen.

And people who have US passports because of a parent and have never lived in the US? Most of them don't even KNOW they're supposed to file and can't understand when I tell them they're supposed to. "but I've never even lived in the States! I don't have to file taxes there!" Uh, yes you do, and I hate you." Seriously, if one of my colleagues pisses me off anymore, I'm going to report him to the IRS out of spite. I guess that's how they catch people!

[frlcb]

Jan 5, 2015 19:30:22 GMT -5 GilliC said:

I know it's anecdotal, but does anyone KNOW anyone who has gotten in trouble for not filing while abroad? We all know plenty of people who don't file and never have issues, so shouldn't we know more people who got caught? The US talks a good game that it finds these people, but I've certainly never seen it happen.

And people who have US passports because of a parent and have never lived in the US? Most of them don't even KNOW they're supposed to file and can't understand when I tell them they're supposed to. "but I've never even lived in the States! I don't have to file taxes there!" Uh, yes you do, and I hate you." Seriously, if one of my colleagues pisses me off anymore, I'm going to report him to the IRS out of spite. I guess that's how they catch people!

I know people who have gone to get a green card for their spouse and not filed taxes and they are unable to apply until they do so. 

[GilliC]

Jan 5, 2015 21:02:12 GMT -5 frlcb said:

Jan 5, 2015 19:30:22 GMT -5 GilliC said:

I know it's anecdotal, but does anyone KNOW anyone who has gotten in trouble for not filing while abroad? We all know plenty of people who don't file and never have issues, so shouldn't we know more people who got caught? The US talks a good game that it finds these people, but I've certainly never seen it happen.

And people who have US passports because of a parent and have never lived in the US? Most of them don't even KNOW they're supposed to file and can't understand when I tell them they're supposed to. "but I've never even lived in the States! I don't have to file taxes there!" Uh, yes you do, and I hate you." Seriously, if one of my colleagues pisses me off anymore, I'm going to report him to the IRS out of spite. I guess that's how they catch people!

I know people who have gone to get a green card for their spouse and not filed taxes and they are unable to apply until they do so. 

But did they face any penalties for not filing?

Actually, now that I think about it, they're threatening those insane penalty fees for not disclosing foreign accounts to the treasury department. I should just borrow some money from him, get his bank account number to pay him back, and then send it to the FBAR people. After all, all of those people with US passports "because of a parent" or "because I was born in the US" should be part of this FBAR nonsense too, right? And non-compliance for that one can cost $$$$

[GilliC]

PS - Yes, I am vindictive. But I think the whole thing is terribly unfair and not publicized or understood well enough to get it changed. ...And the guy in question annoys me.

PPS - There is a congressman speaking out against the foreign account reporting and a lawsuit questioning the constitutionality of it.

[origami]

I cannot believe you're being audited GilliC. That is so fucking ridiculous.

[frlcb]

Jan 6, 2015 5:15:28 GMT -5 GilliC said:

Jan 5, 2015 21:02:12 GMT -5 frlcb said:

I know people who have gone to get a green card for their spouse and not filed taxes and they are unable to apply until they do so. 

But did they face any penalties for not filing?

Actually, now that I think about it, they're threatening those insane penalty fees for not disclosing foreign accounts to the treasury department. I should just borrow some money from him, get his bank account number to pay him back, and then send it to the FBAR people. After all, all of those people with US passports "because of a parent" or "because I was born in the US" should be part of this FBAR nonsense too, right? And non-compliance for that one can cost $$$$

I think they just told them to backfile, and am pretty sure none of them owed money so it wasn't an issue, but I am not sure. I do know our accountant is more concerned about us filing the FBAR every year than our actual taxes, which is ironic since the FBAR is due in June, not April, but they are right on top of that.

[rupertpenny]

I don't know anyone personally who has gotten in trouble for not filing, but my h has clients who have. It can end up being a very expensive mistake. A lot of them are people who haven't ever really lived in the US and don't know they have to file. The whole thing is pretty shitty.

I also hate the FATCA stuff.