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Showing posts with the label tax penalty

Obamacare and Foreign Nationals: Who Pays the Tax Penalty?

We have recently received a lot of questions about the Affordable Care Act ("Obamacare") requirement that ALL persons in the United States prove that they have health insurance or face a penalty, and specifically whether that means ALL foreign nationals.  The answer is yes, and no.  Anyone who meets the definition of a "tax resident," which is a person physically present in the US for more than 183 days in a year, must show that they have health insurance. This anyone with "lawful status" in the United States:  As The IRS Says on their  website : U.S. citizens living in the United States are subject to the individual shared responsibility provision, as are all permanent residents and all foreign nationals who are in the United States long enough during a calendar year to qualify as resident aliens for tax purposes. Foreign nationals who live in the United States for a short enough period that they do not become resident aliens for federal income tax...