Originally Posted by rharish_rh
I have a question related to Individual Shared Responsibility Payment.
Spuse and myself are non resident aliens. My wife was present in the united States for a few months last year and was covered by insurance as was I. She left United States and I removed her insurance while she was covered by insurance in foreign country.
I am doing a joint return. Am I responsible for Individual Shared Responsibility Payment on my federal returns for the months that my wife didnt have coverage in the United States ?
Yes UNLESS an exception applies to her. The individual shared responsibility payment applies to all individuals who are us citizens or US resident alien, green card holders. However, there are some notable exceptions. Even Americans residing in foreign countries or in the American territories, for example, are not required to obtain health insurance;actually unless she was a US resident for tax purposes, she did not ned the health coverage.basically, the shared responsibility payment applies when an individual, or any person in his or her shared responsibility family, does not have the required type of health insurance coverage for at least ONE DAY during any month of the year, unless an exception applies. The penalty is calculated for each month that a person does not have health insurance coverage.so you are responsible for paying the shared responsibility payment for your spouse since you file jointly.as a joint filer, she is required to have health insurance that provides minimum essential coverage.an insurance coverage in foreign country is not eligible. Shared responsibility payments are due by April 15th following the end of the year. Shared responsibility payments are paid through withholding, estimated payments, payments made with an extension, or remitting payments when the return is filed.It is certainly possible that a person may have paid in enough tax through withholding, estimates, and refundable tax credits that they would not need to make additional payments specifically for the shared responsibility payment. In this case, the taxpayer will receive a lower refund due the shared responsibility payment being added to their total tax liability. If a person does not pay the shared responsibility payment, then the IRS will send out a series of notices to request payment. Interest will accrue on unpaid shared responsibility payments from the due date of the payment. However, the IRS is not permitted to assess late payment penalties, to issue a notice of federal tax lien or to levy a person's wages or bank account for any unpaid shared responsibility payments. The IRS can and will reduce future tax refunds due the taxpayer to pay off the unpaid shared responsibility payment. The IRS has ten years from the date of filing a return to collect any unpaid shared responsibility payments. If a person cannot afford to pay their shared responsibility payment in full, the best course of action would be to consult with a tax professional or to call the IRS to review what options are available. One option would be to set up a monthly payment plan.