# Individual Shared Responsibility Payment



## the_mighty_tim (Jan 10, 2014)

Hi all

Rather than go through a tax advisor for the forthcoming tax preparation adventure, I thought I'd have a go at doing it myself using TaxACT. I downloaded the 2014 preview software and have begun experimenting by putting in estimated values for this year, which I'll replace with the real values once the New Year rolls around.

One thing has caught me out though, and I believe it is all new for this year. It concerns something called "Individual Shared Responsibility Payment", and from what I can gather, it's to do with healthcare and health insurance:

The Individual Shared Responsibility Payment - An Overview

The problematic part of the tax form is Line 61 of form 1040.

Since I'm living here in the UK, I'm covered by the NHS. Does this therefore count as coverage as far as the IRS is concerned, and therefore am I exempt from the penalty?

Many thanks!

EDIT: More Googling has resulted in me finding the answer (Q12 on following link):

Questions and Answers on the Individual Shared Responsibility Provision

So, it looks like I don't have to contribute, since by being a bona fide resident of the UK, I have "minimum essential coverage". Phew!


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## Bevdeforges (Nov 16, 2007)

Exactly! US taxpayers resident overseas (in the sense of either the bona fide resident test or the physical presence test) can simply check the box saying that you have MEC (minimum essential coverage).
Cheers,
Bev


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