Health Insurance in US

[yuna628 9,525]

The penalty for not having health insurance is not something that would be deportable as an offense. When the government says 'penalty' it has a lot less weight than people might think - that is because the Supreme Court made it so. The penalty is more like a fine in taxes, or a fee that must be paid to offset not having insurance. No one is demanded or required to have insurance if they do not want it. But if you don't have it or want it, a penalty must be paid.

Temporary insurances, travel insurances, and insurances marketed toward immigrants, like the one you have just mentioned will not prevent a penalty from arising. The government considers these substandard insurances and are not valid forms of insurance to absolve you of the penalty. If one is maintaining being an LPR in the US, I do not believe that having 'coverage' from a foreign nation absolves you either. Green cards are for living in the US, and maintaining residency here, so there is little difference between an LPR not having US coverage and a citizen having no US coverage. The question about not having insurance has been on tax forms for some time. There should even be documentation on how to fill this out.

So how should your wife obtain insurance in the US? Are you insured? She can be added to your insurance if possible as your spouse. You can purchase insurance privately for her from any insurer available in your state so long as it is not the ones that are excluded (per above). Or you may enter the state or federal exchange (Obamacare). Open enrollment is currently available, but it will be ending soon. So get on it. There will be sticker shock.

To conclude there is no issue with her not having US health insurance (except for obvious health reasons) with the US law. the problem really is if you have filled out her IRS forms correctly to assess the penalty for not having health insurance. The law is very complex and not always straightforward in cases with immigrants and healthcare. It would need to be viewed by an expert.

[Michael2017 368]

Hi,

As for me - I have insurance in Germany, my wife is petitioning for me, I have no GC yet. What you say is great advise, just to mention that she was on a re-entry permit. She has officially told the USA that for the duration of the re-enty permit she does not live in the USA and it was granted. Therefore, It would make no sense to have insurance paid where she legally lives - in Europe and than again in the USA - and she told the authorities that she is temporarily not living there. Now once the re-entry permit expires the situation changes but for the druation of the reentry permit i can not see that she should pay insurances double - same as you cant pay taxes at 2 places.

Edited December 13, 2016 by Michael2017

[Transborderwife 4,666]

Hi,

As for me - I have insurance in Germany, my wife is petitioning for me, I have no GC yet. What you say is great advise, just to mention that she was on a re-entry permit. She has officially told the USA that for the duration of the re-enty permit she does not live in the USA and it was granted. Therefore, It would make no sense to have insurance paid where she legally lives - in Europe and than again in the USA - and she told the authorities that she is temporarily not living there. Now once the re-entry permit expires the situation changes but for the druation of the reentry permit i can not see that she should pay insurances double - same as you cant pay taxes at 2 places.

yes you can. i had to for both my Canadian and us taxes last year, professionally prepared. many people do

[Michael2017 368]

Not for the same income. You can have US and Non-US income taxed different placed, but the exactly same income can not be taxed twice in a country with a tax treaty. Anyhow, I am less worried about the taxes, got to get some insurance quotes for my wife asap. Whom should we contact to ask if we owe any penalty backwards? The IRS? If we owe something we would like to pay it off, but no idea whom to ask and where to pay the penalty as no one came and ask us to pay one.

[EM_Vandaveer 2,364]

Not for the same income. You can have US and Non-US income taxed different placed, but the exactly same income can not be taxed twice in a country with a tax treaty. Anyhow, I am less worried about the taxes, got to get some insurance quotes for my wife asap. Whom should we contact to ask if we owe any penalty backwards? The IRS? If we owe something we would like to pay it off, but no idea whom to ask and where to pay the penalty as no one came and ask us to pay one.

It's possible her income was low enough to qualify for an excemption from the tax penalty. I know from personal experience. Although I use a tax prepare website, but this question is always asked, however, I have not had to pay the penalty yet. I am uninsured but so far our income was always low enough for an excemption. Next year it probably won't be so we'll end up having to pay the tax penalty.

Edited December 13, 2016 by EM_Vandaveer

[Michael2017 368]

It's possible her income was low enough to qualify for an excemption from the tax penalty. I know from personal experience. Although I use a tax prepare website, but this question is always asked, however, I have not had to pay the penalty yet. I am uninsured but so far our income was always low enough for an excemption. Next year it probably won't be so we'll end up having to pay the tax penalty.

Great news! This is what I was looking for. Yes, she was a student (she has a master degree in law now) and income was just under 10.000$/ every year for part time job. So we actually were not even required to file taxes but did anyhow. Also have foreign earned income filed to be double sure. We put 0 in the line of the 1040. No one came after us. If there is a min. amount for the penalty this would safe our last years most properly! Does anyone know where this limit is?

Thanks to all the helpful posts here!

Edited December 13, 2016 by Michael2017

[EM_Vandaveer 2,364]

Great news! This is what I was looking for. Yes, she was a student (she has a master degree in law now) and income was 10.000$ for part time job. So we actually were not even required to file taxes but did anyhow. Also have foreign earned income filed to be double sure. We put 0 in the line of the 1040. No one came after us. If there is a min. amount for the penalty this would safe our last years most properly! Does anyone know where this limit is?

Thanks to all the helpful posts here!

If her income was under the filing threshold, she definitely has an excemption. Our income has been under the filing threshold, too, but we still file anyway.

Being under the filing threshold means an automatic excemption from the tax penalty.

[Boiler 43,361]

If she is not in the US then there is also an exemption to OCare, obviously a lot of Americans live abroad and to buy cover you need to be resident somewhere in the US.

[Michael2017 368]

Amazing news, thanks so much EM! This really helps!

Now last question, what about a year, in which you don`t know if you will cross the filing threshold or not?

E.g. in 2017, she is trying a own business, but no one knows if it will make money or not.

How to know if she needs to get insurance or not in advance?

[Umka36 781]

Most Exemptions are claimed when you file your return

You can claim most exemptions using Form 8965, Health Coverage Exemptions, when you file your tax return.

If you or anyone in your family qualifies for a coverage exemption on your tax return, you must file Form 8965, Health Coverage Exemptions, with your tax return. You do not need to call the IRS to get this coverage exemption in advance.

If you are not required to file a federal income tax return for a year because your gross income is below your return filing threshold, you are automatically exempt from the shared responsibility provision for that year and do not need to take any further action to secure an exemption. Therefore, you do not need to file a return solely to report your coverage or to claim a coverage exemption. If your income is below the filing threshold for your filing status and you choose to file a tax return, use Part II of Form 8965, Coverage Exemptions for Your Household Claimed on Your Return, to claim a coverage exemption. You should not make a shared responsibility payment if you are exempt from the coverage requirement because you have income below the filing threshold.

https://www.irs.gov/affordable-care-act/individuals-and-families/aca-individual-shared-responsibility-provision-exemptions

[Michael2017 368]

Thanks! So far all good!

Edited December 13, 2016 by Michael2017

[EM_Vandaveer 2,364]

Amazing news, thanks so much EM! This really helps!

Now last question, what about a year, in which you don`t know if you will cross the filing threshold or not?

E.g. in 2017, she is trying a own business, but no one knows if it will make money or not.

How to know if she needs to get insurance or not in advance?

You don't know. Basically it's a gamble. Personally, for our family, health insurance is too expensive so we choose not to get any. Even if we end up having to pay the penalty on our next tax return, we'll still be out of less money than we would have been paying for premiums & deductibles.

[Michael2017 368]

Thanks, now the situation is clear. Great help of you guys here!

[David & Diana R 1,005]

You don't know. Basically it's a gamble. Personally, for our family, health insurance is too expensive so we choose not to get any. Even if we end up having to pay the penalty on our next tax return, we'll still be out of less money than we would have been paying for premiums & deductibles.

ONE major illness and you could lose everything... I don't understand how anyone could live in the US without Health insurance.

Edited December 13, 2016 by David & Zoila

[Merrytooth 5,748]

ONE major illness and you you could lose everything... I don't understand how anyone could live in the US without Health insurance.

emergency medicaid