Tax filing first time/health insurance penalty

[Beleg 3]

I was up for hours last night reading the IRS website.  As far as I can tell, you might be able to avoid some of the penalty if you file separately using duel alien status.  However, if you file separately this way. both filers would have to itemize.  If the US citizen does not have enough deductions to itemize, then you would have to file joint (along with a statement from the spouse indicating that they want to be treated as a resident for the whole year)

My wife came in June, filed for AOS in August, and she still doesn't have her Green Card.  I'm gonna crunch the numbers tonight, but I think I'm going to have to file joint with her, and pay the penalty.  

FYI, my employer's insurance did not allow my spouse to get on my insurance because she didn't have a Green Card.  Marriage wasn't enough of a qualifying event for them....

[Chardon Ne' 71]

On 2/8/2017 at 4:47 PM, Suss&Camm said:

No, you have to send an election statement.

No I dont. Everyone's situation is not the same. I do not have to elect to do anything because the law allows the automatic assumption under the substantial presence test or at least that's how my tax professional explained it to me. 

[Jenilyn and Awal 22]

I think marriage is a qualifying event?  I don't know how they got out of providing you the opportunity to cover her, how much is the penalty? Sometimes worth the pay to use the deduction. 

[Suss&Camm 2,213]

1 hour ago, Chardon Ne' said:

No I dont. Everyone's situation is not the same. I do not have to elect to do anything because the law allows the automatic assumption under the substantial presence test or at least that's how my tax professional explained it to me. 

I know everyone's situation is not the same, that goes without saying. I've never heard of that automatic assumption or read about it anywhere, but If you are confident it is so, then of course do as advised.

[Chardon Ne' 71]

Just now, Jenilyn and Awal said:

I think marriage is a qualifying event?  I don't know how they got out of providing you the opportunity to cover her, how much is the penalty? Sometimes worth the pay to use the deduction. 

Maybe there was a time limit. I had to add my spouse within 30 days of the event. Then I missed open enrollment in October, which would have made me wait a whole year. Luckily I explained that he didnt have a social until November and they did a system override to add him for January. 

[Jenilyn and Awal 22]

Ok that's good tho, I think ours in October also. But they charge the months he came then after right? It may not be to bad. I had pay three months penalty one year cause I got laid off work, I couldn't afford the affordable care lol. 

[Chardon Ne' 71]

26 minutes ago, Suss&Camm said:

I know everyone's situation is not the same, that goes without saying. I've never heard of that automatic assumption or read about it anywhere, but If you are confident it is so, then of course do as advised.

 

In knowing that,  A better practice in my opinion would be to ask why rather than respond so matter of factly.

 

"You are a resident alien of the United States for tax purposes if you meet either the green card test or the substantial presence test for calendar year 2016 (January 1–December 31). Even if you do not meet either of these tests, you may be able to choose to be treated as a U.S. resident for part of the year. See First-Year Choice under Dual-Status Aliens, later.

 

Substantial Presence Test You will be considered a U.S. resident for tax purposes if you meet the substantial presence test for calendar year 2016. To meet this test, you must be physically present in the United States on at least:

1. 31 days during 2016, and

2. 183 days during the 3-year period that includes 2016, 2015, and 2014,

counting:

a. All the days you were present in 2016, and

b. 1 /3 of the days you were present in 2015, and

c. 1/ 6 of the  days you were present in 2014. "  

[Suss&Camm 2,213]

On 2017-02-08 at 3:38 PM, Chardon Ne' said:

Im in the same situation as you and I am just going to file married filing jointly without any letter it is my understanding that it is done automatically once you file.

 

3 hours ago, Chardon Ne' said:

No I dont. Everyone's situation is not the same. I do not have to elect to do anything because the law allows the automatic assumption under the substantial presence test or at least that's how my tax professional explained it to me. 

 

From your first statement it sounded as if it is always done automatically. I have never heard of a "automatic assumption". I have heard of the substantial presence test. My bad, When I read your first statement I misunderstood you as it applying to all.

[Suss&Camm 2,213]

49 minutes ago, Chardon Ne' said:

In knowing that,  A better practice in my opinion would be to ask why rather than respond so matter of factly.

 

"You are a resident alien of the United States for tax purposes if you meet either the green card test or the substantial presence test for calendar year 2016 (January 1–December 31). Even if you do not meet either of these tests, you may be able to choose to be treated as a U.S. resident for part of the year. See First-Year Choice under Dual-Status Aliens, later.

 

Substantial Presence Test You will be considered a U.S. resident for tax purposes if you meet the substantial presence test for calendar year 2016. To meet this test, you must be physically present in the United States on at least:

1. 31 days during 2016, and

2. 183 days during the 3-year period that includes 2016, 2015, and 2014,

counting:

a. All the days you were present in 2016, and

b. 1 /3 of the days you were present in 2015, and

c. 1/ 6 of the  days you were present in 2014. "  

This might be a dumb question. I haven't researched it closer since it didn't apply to me when filing, but if you are using the substantial presence test. How does the IRS know when you moved to the US?

[Chardon Ne' 71]

7 minutes ago, Suss&Camm said:

 

 

From your first statement it sounded as if it is always done automatically. I have never heard of a "automatic assumption". I have heard of the substantial presence test. My bad, When I read your first statement I misunderstood you as it applying to all.

Right it just means I can file 1040 instead of the 1040nr and by so doing that is the automatic assumption. 

[Suss&Camm 2,213]

Just now, Chardon Ne' said:

Right it just means I can file 1040 instead of the 1040nr and by so doing that is the automatic assumption. 

oh ok... so on the IRS website it says this:

 

"Residency Starting Date under the Substantial Presence Test

If you meet the substantial presence test for a calendar year, your residency starting date is generally the first day you are present in the United States during that calendar year."

 

So wouldn't that mean that one wouldn't be considered a resident for the ENTIRE year without the election statement, but rather from the date one entered? 

[Chardon Ne' 71]

2 minutes ago, Suss&Camm said:

This might be a dumb question. I haven't researched it closer since it didn't apply to me when filing, but if you are using the substantial presence test. How does the IRS know when you moved to the US?

IRS is federal, Im sure they have their ways lol, however they also use SAVE. 

[jenibaleeni 11]

Ok, dumb question...

 

She was just approved for her Green Card.  Does this impact us filing our taxes now??

[Jenilyn and Awal 22]

Did she have coverage from her country up to now? If she's. Overex by any other insurance she's ok on the insurance part you still have to show her as either non resident or resident alien if you claim her on taxes

[Trymester3 6]

Asking this question here so as to not start a new thread.

 

My wife and I are in the middle of a divorce. She may not need health insurance at all, but being that she's a resident she will be charged on next year's taxes if she doesn't choose a plan. I know that she would rather not have to send $200-$400 monthly money orders to the NY State of Health for an insurance that she doesn't plan to use. She doesn't ever go to the doctor.

 

My question is, can any of you estimate how much money they'll take out of her 2017 tax return next year to penalize her for not getting insurance?