Non-eligible (how to handle)

[ILLMAS]

If a TP is not eligible for health insurance because he is not considered a resident for immigration (work visa) purposes, how do you let the IRS know he is not eligible therefore is not subject to the penalty?

 

MAS

 

Trying to figure this out on ATX

Edited January 20, 2015 by ILLMAS

[ILLMAS]

I believe I figured it out, under form 8965, Part III one would choose "C" = citizen living abroad or certain non citizens, does this sound correct? Anyone

[Pacun]

Yes, that will be the one for a lot of immigrants.

 

The first elimination that I will be using will be income level. The next one will be another one depending on personal situation. As the last result, I will use "C". Of course if the return only includes ITINs, "C" will be my first option.

[Chowdahead]

I believe I figured it out, under form 8965, Part III one would choose "C" = citizen living abroad or certain non citizens, does this sound correct? Anyone

 

Residency for tax purposes if different than residency for work purposes.  If the person has an ITIN, they most likely applied for it on the W-7 claiming that they are a "resident" of the United States based on number of days present in the United States.

 

So in my view, if that's the case, they may still be required to have health insurance.  They do not qualify for the Advance Premium Tax Credit if they have an ITIN.  They do not qualify for Medicaid (but their kids do).

Fortunately, most of these people make low enough wages that they will qualify for the unaffordable coverage exemption.

[Chowdahead]

Sorry, looks like they are exempt since the ACA treats them as non-residents, regardless of what the claimed to obtain their ITIN, because they are not eiligible to buy afforable coverage.

 

But if their kids are citizens, I believe they still need coverage.

[ILLMAS]

Something to add, whipper snappers that benefited from DACA aka Dream Act DO NOT qualify for ACA, goes back to residency for immigration purposes not tax.