Obamacare (Affordable Care Act) and the Expat

Obamacare (Affordable Care Act) goes into effect January 1, 2014.

How will it affect Expats living in Ecuador or elsewhere outside of the US? And more specifically, how will Obamacare affect those who live here full-time but use an address in the states as your residence address for banking, tax returns and social security?

From what I have read it can affect us in our pocketbooks.

If the US government has not been informed that we are living abroad then we will be considered living in the US and we’ll be required to participate in the new health care program, not usable in Ecuador. Or pay a fine.

We have read that 15,000 to 20,000 new enforcement agents will be hired for the IRS to enforce this new law.

Anyone who is interested in researching this further can go online Expat and Obamacare.  One more question would be if you have Medicare or other insurance, does that fulfill your requirements even if you show a US residence address?

 

Internal Revenue Service – Expat Information – FBAR Form TD F 90-22.1

The IRS requires that the FBAR form be filed annually:

Who must file an FBAR:

United States persons are required to file an FBAR if:

  1. The United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and
  2. The aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year to be reported.

See the full IRS guideline at: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial-Accounts-(FBAR)

If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service by filing Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR).

TD F 90-22.1 can be found at:  http://www.irs.gov/pub/irs-pdf/f90221.pdf

The FBAR is required because foreign financial institutions may not be subject to the same reporting requirements as domestic financial institutions. The FBAR is a tool to help the United States government identify persons who may be using foreign financial accounts to circumvent United States law. Investigators use FBARs to help identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad.

The filing date is June 30 of each year. Add this one to your calendars.