Job Discussion Forums

[choudoufu]

oh, man, i think i'm gonna like communism!!!

from what i understand, the new obamacare health insurance ponzi
scheme requires that all 'merkans have insurance. if not provided by
an employer, they must purchase a plan. given that the cost is soooo
high, there are tax credits included as subsidies.

it seems that these are REFUNDABLE tax credits, like the earned income
credit. they first are applied directly to the tax owed, and any remainder
is sent to the tax filer as a tax refund.

see this page for a subsidy calculator:

http://healthreform.kff.org/Subsidycalculator.aspx

assuming we take the 2555 foreign earned income exclusion, and are
vigilant in maintaining our dividends and capital gains at below the taxable
threshold, meaning we have zero tax liability, it would seem that the
ENTIRE subsidy will be 'returned' to us as a tax rebate.

how much? according to the calculator, the average 50 year old single
with an income of $25,000 (assuming AGI before personal deductions
and exclusions), would get a subsidy/tax credit of $5,959.

free money!!!!!!!!!!!!!!!!!!!!



disclaimers:
*amounts are for comparison purposes only.
*your mileage may vary.
*made of 100% recycled materials.
*no animals were harmed during typing of this post.

[just another laowai]

You can take FEIE or subsidy, not both. If you spend more than 35 days in the US, you are basically required to participate. To claim the subsidy, you must buy into an "approved plan". Expats are exempt from this crap fortunately, however it also means that if you spend more than 35 days in the US for any reason, you are screwed.

Just like the EIC, you cannot claim it, nor can you claim anything else decent. For this reason, I just file "single" to shelter my family from the annual burden and allow them to take trips to the US and not get flagged in this crap.

You might want to actually read the legislation prior to finding some random bullshit calculator that assumes expats are not a thing.

Extra note: You only qualify for the exemption if you can:
1) Claim FEIE by being out of the US more than 330 days
2) PROVE residency in a foreign country if you spend over 35 days in the US. This means that you have a resident permit and proof of taxes being paid.

What this means for the English teachers in China: If you are not legal, and spend more than 35 days in the US, you are liable for meeting requirements or paying the fine. #2 is actually quite iffy, as it's not yet implemented and if is possible for it to be interpreted to be based solely on the same test for FEIE.


Sorry, no free money. If you want your free money, it takes far more creativity, but it's still possible to bilk ~$9k a year if you know what you're doing.