Obama care
During the past year we encountered numerous regarding the implementation of Obamacare with regard to American citizens living in ISRAEL.
For your convenience please find below a brief summary of the Obamacare act focusing on its implications on American citizens living abroad.
What is the Obamacare’s goal?
Give more Americans access to affordable, quality health insurance and to reduce the growth in U.S. health care spending.
What is the main problem for US citizens living abroad?
In order to buy the insurance as required under the Obamacare US citizens must actually live in the US. On the other hand, having no insurance may put you in risk to get penalized.
What are the penalties for not having health insurance?
In 2015: 325$ or 2% of your household income – whichever is higher
In 2016: 695$ or 2.5% of your household income – whichever is higher
What is the solution? American citizens living abroad are exempt under the Obama care!
If you are a US citizen living abroad*, you are considered to have essential minimum coverage under the Act and will not be required get health care insurance or pay the penalty.
Use form 8965 in order to claim your exemption and avoid unnecessary penalties
By downloading form 8965 , filling the personal information of each family member on part 3 of the form and checking exemption code C. please don’t forget to attach it to your tax return.
Failure to do so may result in the penalties above being inflicted.
How does ObamaCare impact me? Will I owe additional taxes?
If you are a taxpayer that is considered a high-income earner You will have to pay an additional 3.8% tax on net investment income (Interest ,Dividends ,Capital gain ,Etc..)
If you have any additional questions on this topic or any other issues you wish to inquire about please contact us at 072-2520100 at our working hours Sunday to Thursday 8:30-18:00.
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Us, at VirtueTax believe that beyond excellence in providing professional services toour clients, we must assist and support those in Israeli society whose fate has not improved.Our vision includes business entities and social entities joining hands together and having a shared sense of drive to promote all aspects of Israeli society. Therefore, we have a deep commitment to both Israelis in need and to voluntary bodies focused on helping them. As part of this mission, the company purchases and delivers essential products to those in need in cooperation with organizations such as the “Association for a Turnaround in Education”. Our additional area of activity focuses on transferring funds as donations to animal shelters such as “Jerusalem loves animals” and “Mateh Yehuda loves animals”. We believe that our active involvement in Israeli society, provides not only an important service to the community, but also improves our professional teams.
