Foreign Health Insurance
Moderator: Mark T Serbinski CA CPA
Foreign Health Insurance
IRC section 4371 imposes an excise tax of 1% on health insurance premiums paid to a foreign insurer for a policy covering a US citizen. The policyholder, the insurance company, the insured, and the person who pays the premiums are jointly liable for this tax and for filing Form 720.
1) Most Canadian employers offer a benefit package that would include pharmacy, travel medical, and other healthcare not covered by the province.
Would such plans be subject to the excise tax?
2) Would a worldwide health insurance plan, such as the ones offered by Aetna, be subject to the excise tax?
3) Form 720 requires you to obtain an EIN in order to file, which would suggest the form is not really intended for individuals... or is it?
4) 1% ends up making this a pretty insignificant tax, but say a person was to backfile and pay these taxes for previous years. What sort of penalties would they be looking at? How far back would they need to go? The instructions mention reasonable cause provisions, but not sure if "I didn't know about this tax" would really cut it.
1) Most Canadian employers offer a benefit package that would include pharmacy, travel medical, and other healthcare not covered by the province.
Would such plans be subject to the excise tax?
2) Would a worldwide health insurance plan, such as the ones offered by Aetna, be subject to the excise tax?
3) Form 720 requires you to obtain an EIN in order to file, which would suggest the form is not really intended for individuals... or is it?
4) 1% ends up making this a pretty insignificant tax, but say a person was to backfile and pay these taxes for previous years. What sort of penalties would they be looking at? How far back would they need to go? The instructions mention reasonable cause provisions, but not sure if "I didn't know about this tax" would really cut it.
Re: Foreign Health Insurance
i wouldn't worry about this. If you look at the next section of IRC it describes who is the insured, It is residents of US or those doing business in US.
1. No, Health insurance is not mentioned. "life, sickness, or accident insurance" is not health insurance. The only concern is LIFE insurance.
2, See 1
3. Wouldn't worry about it.
4. Life insurance is the only thing to "worry" about, but I wouldn't.
1. No, Health insurance is not mentioned. "life, sickness, or accident insurance" is not health insurance. The only concern is LIFE insurance.
2, See 1
3. Wouldn't worry about it.
4. Life insurance is the only thing to "worry" about, but I wouldn't.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: Foreign Health Insurance
Thanks Nelsona.
However, looking at 4372(d) it seems that the definition of insured applies only to 4371(1) regarding casualty insurance.
Also, what if a health plan includes term life insurance with it?
However, looking at 4372(d) it seems that the definition of insured applies only to 4371(1) regarding casualty insurance.
Also, what if a health plan includes term life insurance with it?
Re: Foreign Health Insurance
Like I said, I wouldnt worry about it, but you can do what you feel most comfortable with. What is 1% of your premiums?
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: Foreign Health Insurance
I have always considered the health technology market a thriving and attractive niche, significantly since it has been growing so much in recent years. Insurance companies are some of the biggest keys in the industry, so introducing apps that make it easier for patients, doctors, and insurance providers to connect is a must. A health insurance app for patients is the best option for this kind of app since it's super helpful.
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Re: Foreign Health Insurance
Darn. I have been filing the 720 for five years now thinking the tax was due on my GSC health plan premiums. I missed where it only applies to residents of the US. I thought since I am a US citizen, I was required to file it.
I think I will file my final return in April.
I think I will file my final return in April.
Re: Foreign Health Insurance
"Have you considered life insurance? I know it’s a little off-topic, but maybe someone can answer the question of why life insurance is so expensive. I’ve looked up some 5 million term life insurance costs https://www.lifeinsuranceblog.net/5-mil ... icy-cost/5, and there you should pay a significant sum every month. Even if you’re young and have no bad habits. When I was a kid, I thought that I would go to an insurance company and buy life insurance when I grew up. And then I will fake my death, and my family will get a lot of money in this way. Well, it doesn’t seem so simple now. Especially taking into account that the company will probably make an investigation.
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Re: Foreign Health Insurance
It all depends on which company you take out insurance from and what terms. Aetna is probably not your best choice. It's worth looking at something more reliable. The insurance you mentioned can also be provided for individuals, so there's no need to disturb. It's not excised tax-deductible, so there's no need to worry about that either. Do you know of any insurance companies that might include services like https://homecareassistance.com/palm-beach?
Re: Foreign Health Insurance
I can’t give you a specific response to this question because it depends on the location and extent of the infection, the nature of probiotic product, and the dose of the probiotics.
https://jbhnews.com/the-perfect-dbol-cy ... eks/29613/
If the probiotics were prescribed for you, please discuss your question with the prescriber.
If you self-prescribed, your doctor might be able to provide some guidance.
https://jbhnews.com/the-perfect-dbol-cy ... eks/29613/
If the probiotics were prescribed for you, please discuss your question with the prescriber.
If you self-prescribed, your doctor might be able to provide some guidance.