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Health Care Penalty - for when I wasn't even living here?!?!

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Hey everyone,

Tax time! I'm sure most people are freaking out about it.. but hopefully someone can help answer my question.

Background:

CR1 Visa/Green card holder

POE: October 3, 2014 and been living in Florida since

I had Canadian healthcare and a work health plan up until Sept 30. I got a health plan through Coventry that was called a "new immigrant" health plan. I think it was really just a travel insurance plan. Anyway!

My hubs and I are doing our taxes, and it seems as though they want to assess a penalty on me for the 9+ months I WASN'T EVEN LIVING IN THE US!!! How does this make sense? When I crossed the border I had the new health insurance in effect.. but how on earth can they penalize me for not having it when I didn't even live here? What am I missing?

We read through all of the conditions in which the penalty could be waived, but none of them seem to apply to me. Or does the fact that I had Canadian health insurance enough?

Please help! Thanks! :) :)


IR1/CR1 Visa - We are using a lawyer!

Embassy: Montreal, Canada

USCIS

22 Jan 2013 -- packageSent
31 Jan 2013 -- NOA1 from NBC

6 Mar 2013 -- I130 transferred to Orlando local field office (which started the whole nightmare)

Mar 2013 to October 2013 no one would tell us where our case was or what was happening. I suspected the whole time it was just sitting in a corner somewhere in the Orlando field office. I was pretty much right.

October 2013 - get congressman involved. Congressman asks USCIS repeatedly about our case but they won't even tell them anything.

31 Jan 2014- finally get NOA2!!!! (we think the nightmare is over!)

NVC

Our case was not sent from the Orlando field office as it should have been. The nightmare continues. We kept calling NVC and asking if they received our case, and they always said "NO" and that we had to wait 90 business days for it to be received. We called USCIS during this time and they kept telling us it had been sent. After the 90 days of agonizing frustration, NVC then started telling us we had to wait 120 business days. I got our congressman involved again, and they told the congressman it was sitting at the Orlando office this whole time (just as I thought it was!).

22 Apr 2014 -- NVC received
16 May 2014 -- NVC case number assigned
24 May 2014 -- AoS and IV bills paid

28 May 2014 -- Sent AoS and IV Packages

6 June 2014 -- documents scanned

18 July 2014 -- false checklist from NVC

21 July 2014 -- Case complete

28 July 2014 -- receive case complete email from NV

30 July 2014 -- interview booked! September 11 here I come!

Embassy
04 Sept 2014 -- Medical
11 Sept 2014 -- Interview - APPROVED!!!!
15 Sept 2014 -- Package arrived at Loomis location!!!

**03 Oct 2014 -- POE!! **

I NOW LIVE IN OCALA, FL!!!!

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We listed me as having health care for the entire 2014 year (in addition to Ontario OHIP I also had employer benefits for a period). I was not assessed a penalty. Technically Canadian health care is the same as US health insurance (your premiums are paid by tax dollars is all)

I have noticed that both US and Canadian tax forms don't seem to address immigration/emigration at all.

Welcome to Florida ;-)

Edited by dburnt

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Did you file a 2555 or 2555 EZ ?

If you can pass the Bona Fide Foreign residence test in the prior year to tax year -- OR physical presence test .... you can exclude these periods of time

as Exception Code C on Form 8965 for those months.

You are also permitted the 3-month continuous gap (Code B) in the year also...

So if you passed the 330 day physical presence test or qualify as bona fide ending in that year, you run Jan - Sep as C and then Oct, Nov, Dec as Code B - 3 month gap.

If for some reason you did not meet Bona Fide or 330 Day Physical Presence while in Canada, then I think you are stuck UNLESS your Canadian plan was deemed QHP by HHS or you can use the affordability exception etc.

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Did you file a 2555 or 2555 EZ ?

If you can pass the Bona Fide Foreign residence test in the prior year to tax year -- OR physical presence test .... you can exclude these periods of time

as Exception Code C on Form 8965 for those months.

You are also permitted the 3-month continuous gap (Code B) in the year also...

So if you passed the 330 day physical presence test or qualify as bona fide ending in that year, you run Jan - Sep as C and then Oct, Nov, Dec as Code B - 3 month gap.

If for some reason you did not meet Bona Fide or 330 Day Physical Presence while in Canada, then I think you are stuck UNLESS your Canadian plan was deemed QHP by HHS or you can use the affordability exception etc.

Aren't you only suppose to use Code "B" for less than 3 months? Shouldn't he just put exemption code "C" for the full year?

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Hey everyone,

Thanks for the replies! Basically what confused the heck out of us was that Turbo Tax did not list all the exemption possibilities. So, hubs and I looked up the official IRS document that explained the exemptions, and realized that my Canadian healthcare was sufficient. I went with Code "C", and the penalty was waived. Whew!


I have noticed that both US and Canadian tax forms don't seem to address immigration/emigration at all.

I KNOW! With the extremely high immigration/emigration from both countries, you would figure they could get the forms a little more up to date. Ah well. We finally figured it out, crossed our fingers and e-filed. Here's hopin! :)


IR1/CR1 Visa - We are using a lawyer!

Embassy: Montreal, Canada

USCIS

22 Jan 2013 -- packageSent
31 Jan 2013 -- NOA1 from NBC

6 Mar 2013 -- I130 transferred to Orlando local field office (which started the whole nightmare)

Mar 2013 to October 2013 no one would tell us where our case was or what was happening. I suspected the whole time it was just sitting in a corner somewhere in the Orlando field office. I was pretty much right.

October 2013 - get congressman involved. Congressman asks USCIS repeatedly about our case but they won't even tell them anything.

31 Jan 2014- finally get NOA2!!!! (we think the nightmare is over!)

NVC

Our case was not sent from the Orlando field office as it should have been. The nightmare continues. We kept calling NVC and asking if they received our case, and they always said "NO" and that we had to wait 90 business days for it to be received. We called USCIS during this time and they kept telling us it had been sent. After the 90 days of agonizing frustration, NVC then started telling us we had to wait 120 business days. I got our congressman involved again, and they told the congressman it was sitting at the Orlando office this whole time (just as I thought it was!).

22 Apr 2014 -- NVC received
16 May 2014 -- NVC case number assigned
24 May 2014 -- AoS and IV bills paid

28 May 2014 -- Sent AoS and IV Packages

6 June 2014 -- documents scanned

18 July 2014 -- false checklist from NVC

21 July 2014 -- Case complete

28 July 2014 -- receive case complete email from NV

30 July 2014 -- interview booked! September 11 here I come!

Embassy
04 Sept 2014 -- Medical
11 Sept 2014 -- Interview - APPROVED!!!!
15 Sept 2014 -- Package arrived at Loomis location!!!

**03 Oct 2014 -- POE!! **

I NOW LIVE IN OCALA, FL!!!!

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