Chile Forum

A bill (S. 3018), “The Bipartisan Tax Fairness and Simplification Act of 2010” introduced late-February 2010 by Senators Ron Wyden (D-OR) and Judd Gregg (R-NH), aims to make the Federal income tax system "simpler, fairer, and more fiscally responsible." Among other things, the bill would eliminate the foreign earned income exclusion, which concerns all US taxpayers living and working abroad.

eeuunikkeiexpat wrote:Dangerous and erroneous advice.

eeuunikkeiexpat wrote:The first post in response to your post.

Anyone that knows the basics of basics regarding US tax law and US CBP Treasury form requirements knows otherwise.

eeuunikkeiexpat wrote:A related topic now that we've gotten thread activity is / may be the health bill.

USA citizen and resident "Permanent Tourists" or those who may lose official residency status for whatever reason should realize they may be subject to the same requirements ($$$$) as those physically in the States.

Under Title 1, Subtitle D, “Shared Responsibility”, the Personal Responsibility Requirement currently states on page 28 that “Beginning in 2013, all U.S. citizens and legal residents” would be required to purchase coverage of one of the specified types of insurance coverage. This broad reference clearly includes U.S. citizens residing overseas. Yet citizens who are bona fide residents in foreign countries have health coverage plans valid in the country where they reside. If they subscribe to the U.S.-specific insurance outlined in the program – which they do not need and cannot use – they will be paying twice for health insurance. If they do not participate in the U.S. program, they will be subject to an excise tax to be levied on their IRS returns as defined in the bill on page 29.

The purpose of the excise tax is to encourage all Americans who benefit from the U.S. health program to participate in its financing. Americans residing overseas cannot benefit from the U.S. health system, so for them the excise tax is just that – a tax with no counter-part service. As per the September 22nd press release concerning the chairman’s markup, the maximum excise tax per family for non-participation, is $1,900, not a negligible amount.

Ripsigg wrote:The health care bill passed by the Senate(and now being passed in the House) exempts expats who reside at least 330 days of the year outside the country....