My understanding is this taxes begin to take effect for tax year 2013. Surely non-resident citizens should not be subject to these taxes. I saw where non-resident aliens might be exempt. What about non-resident USCs. I am a 70 year old senior resident in Canada (dual ciitzen) living here without interuption for over 40 years. Every dime I have was earned and taxed while a resident of Canada.
For the extra tax on investment income I understand the threshold for married couples is if income is over $250,000; single $200,000 but I've seen nothing form married filing separately which is my situation. In any event I cannot see any justification for non-residents to be taxed when they will not be accessing the benefits.
Also there apparently is a tax/penalty on those not purchasing insurance. Surely that does not apply.
obamacare taxes
Moderator: Mark T Serbinski CA CPA
There is no such theing as obamacare tax. There has been a tax increase. Period. It applies to any taxpayer, at those income levels with that type of income.
And stop watching Fox news.
And stop watching Fox news.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
Starting in 2014, all Americans who file income tax returns must complete an additional IRS tax form. The new form requires disclosure of a taxpayer’s personal identifying health information in order to determine compliance with the Affordable Care Act’s individual mandate. As confirmed by IRS testimony to the tax-writing House Committee on Ways and Means, “taxpayers will file their tax returns reporting their health insurance coverage, and/or making a paymentâ€.
You may download a PDF file of the form and instructions here or view it below.
Highlights from the Obamacare Individual Mandate Tax Compliance Form:
1. Determination of “qualifying†health insurance. Under the Affordable Care Act, most Americans must purchase health insurance deemed “qualified†by the Department of Health and Human Services (HHS) starting in 2014. Failure to comply with this mandate results in a tax penalty which must be paid to the IRS. The tax penalty ranges from $695 to $2085, or more, depending on the size of a family. The dollar amount grows over time and is tabulated on the form. Taxpayers must demonstrate that they obtained qualifying health insurance for each month of the year in order to avoid payment of this tax penalty.
You may download a PDF file of the form and instructions here or view it below.
Highlights from the Obamacare Individual Mandate Tax Compliance Form:
1. Determination of “qualifying†health insurance. Under the Affordable Care Act, most Americans must purchase health insurance deemed “qualified†by the Department of Health and Human Services (HHS) starting in 2014. Failure to comply with this mandate results in a tax penalty which must be paid to the IRS. The tax penalty ranges from $695 to $2085, or more, depending on the size of a family. The dollar amount grows over time and is tabulated on the form. Taxpayers must demonstrate that they obtained qualifying health insurance for each month of the year in order to avoid payment of this tax penalty.
Not Fox, all over the internet. Also seen referred to as a "medicare tax" which we don't pay. In any event assume we will be hit. While I comply still don't see why someone over 40 years resident in Canada and also a Canadian citizen has these obligations. Surely the US tax code and treaties should distinguish between those temporarily residing outside of the US and those permanently residing elsewhere.
$125,000 is the cutoff for married filing separately(MFS). Which brings me to another question re: reasons for MFS. I file MFS.....for me it probably makes little difference in tax since my husband and I both have similar pensions....plus as a Canadian my husband refuses to get drawn into the IRS web. But my son for example is the only wage earner in his family. His accountant has him file MFS and not take deductions for his non-US spouse and children (not entitled to US citizenship since he left US under age 14) for simplicity and to avoid drawing them into the IRS web. I imagine it is or will cost him.
$125,000 is the cutoff for married filing separately(MFS). Which brings me to another question re: reasons for MFS. I file MFS.....for me it probably makes little difference in tax since my husband and I both have similar pensions....plus as a Canadian my husband refuses to get drawn into the IRS web. But my son for example is the only wage earner in his family. His accountant has him file MFS and not take deductions for his non-US spouse and children (not entitled to US citizenship since he left US under age 14) for simplicity and to avoid drawing them into the IRS web. I imagine it is or will cost him.
The Cdn system will qualify the mandate. But if it doesn't, you know the drill: recnounce US citizenship.
You might also be intersted to know that Cdn residents collecting SS payments (for work done in US in their life) also must have a percentage on their SS withheld for medicare, which they will never use.... and that one you can't get out of, renunciation or not.
You might also be intersted to know that Cdn residents collecting SS payments (for work done in US in their life) also must have a percentage on their SS withheld for medicare, which they will never use.... and that one you can't get out of, renunciation or not.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Hmmm... since when is US Medicare mandatory if you worked in the US?
My understanding is that Medicare Part A is generally free if you are eligible to collect Social Security (before application of any SS treaty... i.e. ~10 years of work in USA). I believe parts B, C, and D have a cost associated with enrollment but they are not mandatory.
My understanding is that Medicare Part A is generally free if you are eligible to collect Social Security (before application of any SS treaty... i.e. ~10 years of work in USA). I believe parts B, C, and D have a cost associated with enrollment but they are not mandatory.
I only worked a couple of (covered) years in the US post the implementation of medicare. I do probably have a good 30+ quarters in the 60s & early 70s under social security.
I understand that I am NOT eligible for medicare even PART A since there would not be treaty provisions covering this. Is that correct? Is there a way to get coverage?
I guess under the treaty combining my work in Canada I may be eligible for some US Social Security. Have never applied. Part stubborness , plus suspect in the end would likely not get anything as I worked around 30 years in Canada and collect Canada pension.
I understand that I am NOT eligible for medicare even PART A since there would not be treaty provisions covering this. Is that correct? Is there a way to get coverage?
I guess under the treaty combining my work in Canada I may be eligible for some US Social Security. Have never applied. Part stubborness , plus suspect in the end would likely not get anything as I worked around 30 years in Canada and collect Canada pension.
working from memory, so numbers may be off slightly, but you need 40 credits to qualify for "free" Part A , but 30-39 will get you lower premiums -something like $233/month rather than $423/month.
If you do not sign up within a few months of eligibility (age 65), a penalty kicks in, if you do sign up at a later date.
If you do not sign up within a few months of eligibility (age 65), a penalty kicks in, if you do sign up at a later date.
@ Jenfin. It sounds to me as if you would qualify for some amount of Social Security benefit. I found that out myself recently quite by accident. I too worked in the US in the 60's and early 70's before moving to Canada. I contacted the SSA and requested a statement of my account, found I had only 35 quarters (out of 40 required), and concluded I did not qualify for a benefit. Later I mentioned it to a person at Service Canada while there on another matter. That person stated that the treaty between the two countries allows for such situations and I should contact the nearest SS office and explain my facts.
Unbeknownst to me, that person (who, of course, had all of my contact info) took it upon herself to contact SS directly on my behalf. The first I knew about it was a letter from SSA in my mailbox asking me to phone a certain number to do an over the phone interview. A few months later I was receiving a monthly check. The amount of your benefit depends on how much you actually paid into the US system. But CPP insurable work performed in Canada counts towards meeting that 40 quarter threshold. The fact that you have waited until age 70 will increase what benefit you are entitled to. Believe me when I tell you that a monthly check from the US government does help compensate somewhat for the US tax morass. Whether or not there are deductions from my monthly benefit I can't tell you (haven't received and information slips yet), but who cares, it's free money. It's my understanding that CPP and SS are only taxable in the country of residence.
I believe only US residents qualify for Medicare. Lucky us, living in Canada that's not really an issue.
Unbeknownst to me, that person (who, of course, had all of my contact info) took it upon herself to contact SS directly on my behalf. The first I knew about it was a letter from SSA in my mailbox asking me to phone a certain number to do an over the phone interview. A few months later I was receiving a monthly check. The amount of your benefit depends on how much you actually paid into the US system. But CPP insurable work performed in Canada counts towards meeting that 40 quarter threshold. The fact that you have waited until age 70 will increase what benefit you are entitled to. Believe me when I tell you that a monthly check from the US government does help compensate somewhat for the US tax morass. Whether or not there are deductions from my monthly benefit I can't tell you (haven't received and information slips yet), but who cares, it's free money. It's my understanding that CPP and SS are only taxable in the country of residence.
I believe only US residents qualify for Medicare. Lucky us, living in Canada that's not really an issue.
patti/jenfin,
Of course if you do not qualify for Medicare, (less than 40 quarters) you won't have to pay for any part of medicare, but, I believe, that if you qualify for part A (and it would be free), you also have to take part B, which is not free.
I'd love to here from SS recipients in Canada on that subject, as the rules are -- as expected -- quite labyrinthian.
If you have 6 quarters of SS coverage, you get SS in Canada, as I've explained numerous times.
and as maz57 pointed out, SS payments recieved in canad are only taxable in canada, and 15% of the payment is tax-free (report that amount on line 256).
Of course if you do not qualify for Medicare, (less than 40 quarters) you won't have to pay for any part of medicare, but, I believe, that if you qualify for part A (and it would be free), you also have to take part B, which is not free.
I'd love to here from SS recipients in Canada on that subject, as the rules are -- as expected -- quite labyrinthian.
If you have 6 quarters of SS coverage, you get SS in Canada, as I've explained numerous times.
and as maz57 pointed out, SS payments recieved in canad are only taxable in canada, and 15% of the payment is tax-free (report that amount on line 256).
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Here is my source: http://www.socialsecurity.gov/pubs/10043.html#a0=2
Under Medicare Part B, it says, "Anyone who is eligible for free Medicare hospital insurance (Part A) can enroll in Medicare medical insurance (Part B) by paying a monthly premium."
Notice that it says "can" and not "must".
Under Medicare Part B, it says, "Anyone who is eligible for free Medicare hospital insurance (Part A) can enroll in Medicare medical insurance (Part B) by paying a monthly premium."
Notice that it says "can" and not "must".
Thanks, I think where I was reading was for thsoe who do not get Free Part A, I seem to recall that they must get part B if they opt to buy part A....
anywys, probably doesn't apply to you.
anywys, probably doesn't apply to you.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
I guess the main point is that no Canadian resident needs to have any Medicare premiums deducted from their US social security unless they opt in to Parts B, C, or D.
I think the only real relevance of US Medicare to any Canadian resident is for those that got their 40 credits in the US (without any assistance from the Can-US SS treaty). Since Part A is free for these people, why not opt in??? I think this would give you free hospital insurance for any visits to the USA.
Of course this will all change in the next few years.
I think the only real relevance of US Medicare to any Canadian resident is for those that got their 40 credits in the US (without any assistance from the Can-US SS treaty). Since Part A is free for these people, why not opt in??? I think this would give you free hospital insurance for any visits to the USA.
Of course this will all change in the next few years.