Living in the UK, Didn't earn in the UK in 2014, US taxes only?

Hi all,

Just moved here in July.  I have money here that was gifted to me by my boyfriends mum and I already filled out tax forms through HSBC for that.  What I'm confused on now is what I need to send to the US.  I didn't earn any money in the UK in 2014, so I only need to file my US taxes, but do I need to send the US IRS any additional forms now that I live here and have money in accounts here?

Thanks!

You might want to spend a few minutes reading IRS Forms 3520 and 8938 (and their instructions) and FinCEN Form 114, to decide if you need to file any of these with the IRS or the US Treasury.

To avoid the healthcare penalty, you'll also possibly have to wait to file until roughly June if you ceased to have US health insurance from July 2014 onwards.

Thanks, that is very helpful!

To avoid the healthcare penalty, you'll also possibly have to wait to file until roughly June if you ceased to have US health insurance from July 2014 onwards.

I have not given any thought to the Healthcare penalty.  I had assumed that as we will be covered from January to the end of April by our US health care and then by the NHS after that.  Is that going to cause a problem when we file our US taxes next year?

I have not given any thought to the Healthcare penalty.  I had assumed that as we will be covered from January to the end of April by our US health care and then by the NHS after that.  Is that going to cause a problem when we file our US taxes next year?

I was unaware The Secretary had approved the NHS as minimum essential coverage which meets the requirements of Section 156.604. Since the NHS is not listed in Section 156.602 and unless there's evidence to the contrary, if the NHS does not meet the above, it is not minimum essential coverage.

http://www.ecfr.gov/cgi-bin/text-idx?SID=a9cb8fc4f92e4261786bce1cd095e00e&node=45:1.0.1.2.71.7&rgn=div6

I thought expats who were able to meet the bona fide residence test were presumed to have minimum essential coverage? I'm not speaking to the OP's situation, but generally.

I thought expats who were able to meet the bona fide residence test were presumed to have minimum essential coverage? I'm not speaking to the OP's situation, but generally.

Yes, generally. The problem comes when someone does not meet the requirements for Section 911 (basically, the requirements for form 2555, FEIE). But, there is no presumption. In order to avoid the penalty they must file form 8965. The penalty will increase for following years.

In addition, those covered by Medicare Part A meet the requirement (retirees, for example who qualify for and have opted-in to Part A when taking US Social Security).

https://www.healthcare.gov/medicare/

I was unaware The Secretary had approved the NHS as minimum essential coverage which meets the requirements of Section 156.604. Since the NHS is not listed in Section 156.602 and unless there's evidence to the contrary, if the NHS does not meet the above, it is not minimum essential coverage.

http://www.ecfr.gov/cgi-bin/text-idx?SID=a9cb8fc4f92e4261786bce1cd095e00e&node=45:1.0.1.2.71.7&rgn=div6

Now I am totaly confused!! so we will have to pay a penelty until medicare kicks in? or pay for insurance we can not use?

Now I am totaly confused!! so we will have to pay a penelty until medicare kicks in? or pay for insurance we can not use?

You may file form 8965 once you qualify for Section 911 to avoid the penalty.

But yes, you have to file the form to avoid a penalty for not having insurance you are not allowed to have.

Yes, generally. The problem comes when someone does not meet the requirements for Section 911 (basically, the requirements for form 2555, FEIE). But, there is no presumption. In order to avoid the penalty they must file form 8965. The penalty will increase for following years.

In addition, those covered by Medicare Part A meet the requirement (retirees, for example who qualify for and have opted-in to Part A when taking US Social Security).

https://www.healthcare.gov/medicare/

But then your statement that the Secretary doesn't recognize the NHS as minimum essential coverage isn't really relevant. It's not that NHS coverage doesn't count as coverage for overseas citizens. It's that a US citizen living overseas must meet the requirements to be exempted from the penalty.

Aren't I lucky -- I've got Medicare so I don't have to worry about the penalty.  Medicare which is of course totally useless outside of the US. 

I'm also paying (out of my US pension) for a health insurance medicare supplement which is also of no use overseas.  I only took this to cover me when visiting the US and to pay for anything (not covered by NHS) that might crop up.  (In other words, I could go back once a year and have the usual battery of tests and procedures.)

You can't win, of course ...

But then your statement that the Secretary doesn't recognize the NHS as minimum essential coverage isn't really relevant. It's not that NHS coverage doesn't count as coverage for overseas citizens. It's that a US citizen living overseas must meet the requirements to be exempted from the penalty.

Yes, I think you understand. It's relevant since it is important that others understand meeting the requirements of Section 911 (Bona Fide residence or Physical Presence) and filing form 8965 is needed to avoid the penalty, and that NHS coverage does not constitute "minimum essential coverage" (tick box on line 61) for a 1040 return.

It's a curious situation since those submitting a form 2555 (FEIE) would meet the requirements of Section 911, but they still need to file a 8965 for ACA (?).

Others may have continuing coverage from an ACA qualified US employer plan and can tick the box on line 61, 1040 (retired with continuing coverage, for example).