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13535: ACA Coverage Exemption C - Nonresident Alien Dependent or Joint Filer


IRS Info/Alerts

Does coverage exemption C apply to nonresident alien dependents, or to a nonresident alien who jointly files under an election to be treated as a resident of the United States?
 

See the Instructions for Form 8965, p. 12:

Citizens living abroad and certain noncitizens (code “C”). You can claim a coverage exemption for yourself or another member of your tax household to which any of the following apply.

  • The individual is a U.S. citizen or a resident alien who is physically present in a foreign country (or countries) for at least 330 full days during any period of 12 consecutive months. You can claim the coverage exemption for any month during your tax year that is included in the 12­-month period. For more information, see Physical Presence Test in Pub. 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.
  • The individual is a U.S. citizen who is a bona fide resident of a foreign country (or countries) for an uninterrupted period which includes an entire tax year. You can claim the coverage exemption for the entire year. For more information, see Bona Fide Residence Test in Pub. 54.
  • The individual is a resident alien who is a citizen or national of a foreign country with which the U.S. has an income tax treaty with a nondiscrimination clause and who is a bona fide resident of a foreign country for an uninterrupted period that includes an entire tax year. You can claim the coverage exemption for the entire year. For more information, see Bona Fide Residence Test in Pub. 54.
  • The individual is a bona fide resident of a U.S. territory. You can claim the coverage exemption for the entire year.
  • The individual is not lawfully present in the U.S. and is not a U.S citizen or U.S. national. For this purpose, an immigrant with Deferred Action for Childhood Arrivals (DACA) status is not considered lawfully present and therefore qualifies for this exemption. For more information about who is treated as lawfully present for purposes of this coverage exemption, visit www.HealthCare.gov.
  • The individual is a nonresident alien, including (1) a dual­-status alien in the first year of U.S. residency and (2) a nonresident alien or dual­status alien who elects to file a joint return with a U.S. spouse. You can claim the coverage exemption for the entire year. This exemption doesn't apply if you are a nonresident alien for 2015, but met certain presence requirements and elected to be treated as a U.S. resident. For more information see Pub. 519.

To claim this coverage exemption, enter code “C” in Part III, column (c), and identify the months to which the exemption applies as described under Columns (d) - (p)—Calendar Months, later [in the instructions]. If you meet one of these conditions, you qualify for this exemption even if you have a social security number (SSN).   Application for an ITIN is not relevant to qualifying for the exemption.


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