Expat Taxes and ACA
How is an employee to handle expat taxes and ACA? By law (The Expatriate Health Coverage Clarification Act or EHCCA) states that an expat is defined as an employee who is out of the U.S. for more than six months and if that person is covered by a group health policy, it is considered Minimum Essential Coverage (MEC) and therefore that coverage is deemed ACA (Affordable Care Act or Obama Care) compliant. When an expat has such coverage, they will receive a 1095B from the healthcare company furnishing their coverage. The 1095B shows the time frame they have been covered by compliant coverage. The expat does not file that 1095B, but keeps it with their tax papers for that year in case they were audited.
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