Now that it has been determined that the Affordable Care Act is here to stay, many people are asking, what about the tax penalties? What about the individual mandate?
It is important to know that the Individual Mandate is the key factor of the Affordable Care Act. If you can afford health insurance but choose not to buy it, you must pay a fee called the individual shared responsibility payment, which is ultimately a penalty tax that must be paid along with filing your taxes.
These funds allow those less privileged to receive a subsidy so they can access health insurance.
While President Trump has issued certain Executive orders about the ACA, the Internal Revenue Service (IRS) will still enforce a penalty.
On Friday March 24th, 2017, it was decided that the Affordable Care Act will remain the law of the land and the IRS still has to follow the law and administer the Affordable Care Act as it is called for in the regulations. The IRS website outlines how to send payment upon filing taxes, if you failed to have an ACA plan during 2017.
While most expats think ACA approved plans are expensive, studies shows that when you compare the tax contributions most expats make during their employment in their country of origin, the premiums under the ACA plan are about 7%-11% less than the tax contribution to receive public health in most European countries.
The good news is, there is still time to be compliant and avoid the tax penalty. The ACA requires a minimum coverage of 9 months of a compliant plan during any given calendar year in order to avoid paying a tax penalty.
Think ahead and avoid the 2018 penalty; Enrolling by April 1, 2017 and staying covered during 2017 for a one year commitment will keep you compliant for 2018 tax season.
WellAway is happy to offer the first ACA compliant plan, specifically catered to expatriates wanting high-end U.S. health program with worldwide coverage.
We also offer an ACA compliant plan for French expatriates residing across the globe called La Vie À l’Étranger. We have partnered with the CFE (Caisse des Français de l’Étranger) to offer even more coverage.
WellAway provides a selection of products for expats in all parts of the world. We have plans for everyone, ranging from students to senior citizens. To browse our product line, please visit us at www.wellaway.com