# US tax return and obamacare



## steve2112 (Feb 1, 2016)

hi all,

i'm a US citizen living in Thailand, and i usually file a US tax return every year even though technically i don't need to as my income is below the $10300 minimum, and in previous years i have qualified under the bonafide residence test for my foreign earned income anyhow.

i just checked the irs website and get the result "
Do I need to file a tax return for 2015?

You are not required to file a tax return for 2015
You are not required to file a tax return because your income does not equal or exceed $10,300, nor do you owe any special taxes or have any special situations that require you to file. "

last year i spent about 4 months in the US, made no money, but it has come to my attention that I could get fined because I didn't have Obamacare. however, I read that if you do not have enough income to meet the level required to file a tax return, then you are exempt from the fine.

so i'm thinking about not filing, but I don't want to get into problems with the tax people and down the road with the social security people as i am relying on social security for my future. i prefer to file, even through i'm making almost nothing, but then will i get hit up for the Obamacare fine?

please no politics on the whole Obamacare thing, i just want practical, informed advice.

thx steve


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## Bevdeforges (Nov 16, 2007)

They are really serious about that "you don't have to file" thing. If you made less than the threshold amount, you really don't have to file - and so you don't have to worry about the ACA thing.

Somewhere on the IRS site it actually says (or used to say last year) that you shouldn't file if you're not required to unless you have a specific reason (usually a refundable credit). The fact of your having been in the US for four months is irrelevant if your income is below the threshold.
Cheers,
Bev


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## steve2112 (Feb 1, 2016)

thanks for the answer. so by not filing, its automatically assumed by the IRS that you didn't meet the threshold then i guess. seems like a strange system through, seems like you should tell them.

but i guess since i've been filing peanuts for the last few years, and going down every year for the last 5, they probably get the idea.


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## BBCWatcher (Dec 28, 2012)

Note that there's a separate, lower filing threshold if you owe the Self-Employment Tax.

If you don't meet the general filing threshold then you're not going to be subject to the Individual Shared Responsibility Payment no matter how long you spent in the United States. Use Part II of IRS Form 8965 to claim a coverage exemption due to low income. See Form 8965's instructions for more information.


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## Bevdeforges (Nov 16, 2007)

steve2112 said:


> thanks for the answer. so by not filing, its automatically assumed by the IRS that you didn't meet the threshold then i guess. seems like a strange system through, seems like you should tell them.
> 
> but i guess since i've been filing peanuts for the last few years, and going down every year for the last 5, they probably get the idea.


After my Dad retired, he and my Mom were living off their IRA accounts. They had very few expenses, their house was paid off and so they fell well under the thresholds for several years - though my Dad continued to file. Finally they got a letter from the IRS telling them NOT to file anymore unless their situation changed enough to bring their income above the filing threshold.

I was skeptical, but the people at the Paris IRS office confirmed that the IRS really does send out such letters. I only wish I could have found it when I cleared out their house for sale. Would have LOVED to have framed that baby for posterity!

Strange system - yeah, sure. But if they say not to file, then by gosh, don't file!
Cheers,
Bev


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## steve2112 (Feb 1, 2016)

at the risk of beating a dead horse, i found this

irs dot gov/Affordable-Care-Act/Individuals-and-Families/ACA-Individual-Shared-Responsibility-Provision-Exemptions

"If you are not required to file a federal income tax return for a year because your gross income is below your return filing threshold, you are automatically exempt from the shared responsibility provision for that year and do not need to take any further action to secure an exemption. Therefore, you do not need to file a return solely to report your coverage or to claim a coverage exemption"

although it doesn't specifically say so, it's implied that if i'm not filing a return, i should not file a Form 8965, is that right?


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## Bevdeforges (Nov 16, 2007)

Correct.
Cheers,
Bev


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