Question Form 8965

Hi all, I'm a bit confused about this and have a quick question.

I filed for the first time in 2014. However, I lived and earned money in Germany at the time. I went through an expat tax preparer. I asked specifically if I have to file an exception for the ACA. He told me I don't because I had German health insurance for the entire year.

I've noticed several threads recently where people say you should file the exemption. Is that because there is no "insurance" as such in the UK (i.e. NHS instead of publicly regulated private health insurance like in Germany)? Or was he just plain wrong and every expat needs to file the exemption form?

Would appreciate any advice!
Thanks, Max

Hi all, I'm a bit confused about this and have a quick question.

I filed for the first time in 2014. However, I lived and earned money in Germany at the time. I went through an expat tax preparer. I asked specifically if I have to file an exception for the ACA. He told me I don't because I had German health insurance for the entire year.

I've noticed several threads recently where people say you should file the exemption. Is that because there is no "insurance" as such in the UK (i.e. NHS instead of publicly regulated private health insurance like in Germany)? Or was he just plain wrong and every expat needs to file the exemption form?

Would appreciate any advice!
Thanks, Max

What qualifications in tax did your preparer have? Does he appear in the IRS Directory here: http://irs.treasury.gov/rpo/rpo.jsf

What qualifications in tax did your preparer have? Does he appear in the IRS Directory here: http://irs.treasury.gov/rpo/rpo.jsf

He's an "enrolled agent". I went through Greenback Tax Service.

What about my original question?

The advice you received was incorrect unless you meet one of the exemptions on Line 7a or 7b of Part II of Form 8965.  You may want to file a 1040X for 2014 rather than have the IRS discover the mistake.

As you were previously in Germany which has a calendar tax year, did you elect to claim foreign tax credits on the accrual method, as this is a real pain for someone in the UK, given the UK tax year end?

Did your 2014 US return report any contributions to German pension plans or refunds you might have received that year from German social insurance?

The advice you received was incorrect unless you meet one of the exemptions on Line 7a or 7b of Part II of Form 8965.  You may want to file a 1040X for 2014 rather than have the IRS discover the mistake.

What would the implications be? I should start this process through the EA that filed the taxes, right?

As you were previously in Germany which has a calendar tax year, did you elect to claim foreign tax credits on the accrual method, as this is a real pain for someone in the UK, given the UK tax year end?

No, I did foreign earned income, because I don't think the tax credits would have covered the tax due in the US. I only earned like $14,000 (I was a student at the time)

Did your 2014 US return report any contributions to German pension plans or refunds you might have received that year from German social insurance?

Do you mean private pension plans? No, I didn't have any form of investment there. I haven't applied to have the German social insurance paid back yet, because I believe to have read that you have to not make contributions for 24 months before they pay it out.


This was the rationale when I asked about the exemption form:

For 2014 you are considered "covered" since you have foreign health insurance and are a foreign resident,  You would only need to file the exception if you did not have foreign health insurance.  I can see deductions for health insurance on your wage statements so its a non-issue for you.