expat moving back to the usa

If you have a US passport then just come on in.  You should have no problem.

Bob K

Hello Bob,

I know I can come back with no problem, I do every summer. But if I come to stay, I think there are some formalities, things I need to do, I am not sure what. Who am I supposed to contact? And what about the Obama Care? How do I know how much to pay monthly for health insurance? Things like that. Is someone informed on the proper way to come back, as a resident?

Nothing special to be done to "come back" Yes you will have to follow the US laws, Obama care, taxes, get a US driver's license, change your credit card addresses, and so on but NO special rules you need to follow.  You are a US citizen.

Bob K

Ok then, thank you Bob. I have the US driver's license and I have used a friend's address the past 6 years for my credit cards.

But do you know anything about Obama care? How do I know how much I am supposed to pay monthly? Is it based on income? I am not sure I will be employed right away when I get back.

As far as taxes, I am not sure yet if I will be paying taxes in France or in the US. Do I need to get some proof of residency in either country, to justify where I will be paying? (I understand the country where you pay taxes is the one where you live over six months: I will be going to the US at the end of June, but may be visiting France in December, so it is not clear yet how many days I will have been in either country in 2015).

Obama care just means you need to have insurance.  Google it and indicate the state you will be in.

As to taxes if you are a US citizen you need to pay US income taxes (or at least file even if you don't earn enough to be taxed) no matter where you live.

I have been back in the US for 33 days in the last 10 years and still pay and or file my taxes every year.

Bob K

Ok I am going to check for Obama care in Arizona then. Thanks for your suggestions.

Val

You are welcome...good luck

Bob K

Just come back like from vacation.
As far as healthcare.  You need to apply on the website Healthcare.org explain where or what if they ask so you don't get penalized late fees. Obamacare has extended applying dates several times..
GL..
Blitzer...

That is one of the good things about being out of the US for over 330 days a year....Don't worry about Obama care

Bob K

Hello Blitzer,

This is the sort of thing I was concerned about. Is the amount you pay based on income or savings? I am not sure I will have a job right away when I get there.

Val

I returned to the US about a year and half ago, and this is something you should think about doing.

I would assume you have been filing a tax return while you were in France. You must check with whomever does your filing to make sure your days out of the US will be enough to insure any money you made in the last 4-5 months will not be taxable. My CPA set it up so I could return and not pay any taxes for the year I was returning. I tried to understand how he did it, but, in the end, I didn't - but knowing he did really helped me!

For your medical care, you will have to state how much you made on your last IRS return. Obamacare really saved me when I came back - no more pre-existing conditions, and you won't have to worry about an open enrollment period because you will have a reason to enroll after the enrollment date.

With all that said, I hope you do better than I did after 10 years abroad. I couldn't stand being back and end up moving out of the country again!

Good luck!

Hey Val,

It's based on income, maybe assets.. But there are subsidies for low income ect..

Just fill out the form on healthcare.org it is different for everyone. There is no magic number that nobody can give you. IT wilI be what it will be after you get done filling it out. Its very simple questionnaire, takes about 18 minutes to complete..  Someone from the healthcare site will call you later to follow up and answer all your questions..
GL,
Blitzer..

Hello Susan,

I have been paying my taxes in France for the past 5 years. Meanwhile, 2 years ago, I found out I was supposed to file in the Unites States no matter what, because I am a US citizen. So I went to H&R Block when in the US over the summer: I was told there was no need for me to worry, and to come back to them if the IRS asked about it. The accountant at H&R Block told me that I wouldn't be penalized as far as I paid my taxes in France (which I did), and that they would then catch up on my paperwork if necessary when I'd come back to live in the US.

I felt I needed to explain this in the first place, because I am not sure I understand the first part of your explanation: are you talking about filing a tax return in France or in the US? And then, I don't understand the part with the 4-5 months taxable. As I understand it, on that year of transition, you are supposed to pay taxes in the country where you spent 6 months or more. I will be going to the US on June 29, but will be returning to France on December 29. So I will be filing my 2015 taxes in France, right? And how does Obama care have an incidence on that, I don't understand (sorry, it seems really complicated to me).
Also, what is open enrollment?

Thanks for your patience,

Blitzer,

Do I need to fill in this form while I am still in France, or once I get to the US? My phone number in the US is not operational yet (to be called by someone from the healthcare site)

When you get to AZ, call AZ blue cross blue shield and ask about health insurance. They handle everything. Obamacare just wants everyone to have health insurance - nothing special

Tom

I wrote what I did because my CPA has always advised me that I HAD to file a return, even when I was working overseas. This was to insure the IRS that I was following the law at every turn. In the last few years, US tax law has become a bigger burden on the expat than it used to me.

If I were you, I would seriously check with someone who specializes in expat incomes. That is what I did, and while it costs more than H&R Block, for me it was worth the peace of mind.

My CPA told me that there is a formula (or something akin to that) regarding the year you return. It is based on when you first left the US to reside and work abroad. I had actually not planned on returning until the following tax year in order to prevent my foreign income from being taxed, but my CPA assured me that I had met my time. I can't suggest enough that I think you should, again, get advice from some one who specializes in expat tax issues.

Obamacare, like other insurance policies, have open enrollment once a year. However, a person can still apply for coverage if their circumstances were such that their previous policy was terminated other such reasons. BliTzer gave you good advice about taking the time to fill in your form online. Or, if you have a problem with it, they also have an 800 number and someone can take you through it step by step.

Do it when you get to the US.  By filling out the healthcare.org form it will give you ALL the insurance prices from the best rate on. What company offers what and so on.. It will put you in a bracket based on income giving you a base price or if you qualify it could be free..  You will not know until you fill it out.  Do it when you get back in US.

Valeriaaz, when I applied for Obamacare, I had to base it on my income that I had made in the US for the previous year (I had a separate income beyond my foreign-based income), but they also take into consideration a lot of other issues. I highly suggest you call them. (If you have been out of the US for so long, you must have Skype or an equivalent, right?) But DON'T call them until you have all of your financial information in hand. In fact, if it were me, I would contact a tax preparer beforehand. There have been a large number of changes regarding foreign income recently. Better safe than sorry! Good luck!

Susan I believe you are correct.  You have to file a return every year even if you are not earning money and are out of the US.  If you earn money outside the US there is an amount that is exempt from US taxes but anything over that limit is taxable in the US.

I hear you an moving back to the US and not liking it. We are contemplating coming back to the US in a couple of years and every time we think of it we feel like it might not be time yet.  We have been out of the US for 10 years and in those 10 years I have been in the US for less than a total of 35 days.  Maybe Europe next for us????

Bob K

Bob, I lived abroad for 10 years and mostly in very international communities - and I loved it. When I returned to the US, I simply found life to be very "bland" - I really don't have another word for it. Since then, I moved to an international community in southern Ecuador. I live in a small neighborhood outside of a town filled with international expats. When in town, I enjoy the different backgrounds, cultural perspectives and food. At home, I enjoy the "groundedness" of the locals and helping teach English on a voluntary basis to my neighbors.

I LOVE Europe, but I prefer the weather where I live - always between the low 60s and the lower 80s. It's always green, and the nights are always cool. After living in the Middle East I never want to live in air conditioning again - and after the heat and humidity of Texas, I love the fact that I can always enjoy being outside. On the other hand, I never want to be cold again as I was in East Asia. So, I feel like I have found the best place for me. And the fact that I was able to buy a home for $52/sq foot, didn't hurt either.

Susan I understand exactly what you are saying. We came to the island almost 10 years ago and have not looked back for a second.  We live in an area of local Dominicans (who are a  wonderful people), expats and some tourists.  The best of all worlds.  Living here is also about 40% cheaper than in the US.   Building here is a bit more for us than you.  When we built our house 9 years ago we paid about $70 a sq. foot.

We did take a 4 month trek through Europe two summers ago and fell in "love" with certain cities, countries and probably will look spending extended time in Portugal, Budapest (actually going back this year) and parts of Italy. Probably spend 2 years or so doing that.

Not going back to the US anytime soon unless we have to for medical reasons.

Bob K

The son of a good friend of mine got a great deal on a lovely place in Hungary a couple of years ago.

I love Eastern Europe, but I spent one Spring in Praha, and I swore I would never to that again!

Good luck on your travels!

Thanks and good luck to you as well

Bob K

Bob K wrote:

. We came to the island almost 10 years ago and have not looked back for a second.  We live in an area of local Dominicans (who are a  wonderful people)
Bob K

They have the highest per capita percentage of major league baseball players in the entire world.
Proves the point.

Baseball is their way "out" here and they take the game very seriously from a very early age.

Bob K

I was home and then left again after a little over a year. Sorry!

Very interesting replies! Enjoy reading and learning. Pros and cons to living most places. I could probably live a lot of places as long as I am really attracted to something about it. Right now still in FL which is great but could see myself going to the tropics or going back to Europe, certain things about my lifestyle would be easier there.

You definitely have to pay taxes as a US citizen while living abroad even if you are not earning any money within the US. I moved for my husband's job to Saudi and even though we are in the US around 3 weeks a year we are still filing taxes each year. Expats have a different tax base which means you don't end up paying as much. Go to the US embassy website for France & they will either have a tax expert there that you can talk to or a list of companies they suggest meeting with.

valeriaaz wrote:

Hello Susan,

I have been paying my taxes in France for the past 5 years. Meanwhile, 2 years ago, I found out I was supposed to file in the Unites States no matter what, because I am a US citizen. So I went to H&R Block when in the US over the summer: I was told there was no need for me to worry, and to come back to them if the IRS asked about it. The accountant at H&R Block told me that I wouldn't be penalized as far as I paid my taxes in France (which I did), and that they would then catch up on my paperwork if necessary when I'd come back to live in the US.

I felt I needed to explain this in the first place, because I am not sure I understand the first part of your explanation: are you talking about filing a tax return in France or in the US? And then, I don't understand the part with the 4-5 months taxable. As I understand it, on that year of transition, you are supposed to pay taxes in the country where you spent 6 months or more. I will be going to the US on June 29, but will be returning to France on December 29. So I will be filing my 2015 taxes in France, right? And how does Obama care have an incidence on that, I don't understand (sorry, it seems really complicated to me).
Also, what is open enrollment?

Thanks for your patience,

stressedmom you are correct.  We have been living in the Dominican Republic for nearly 10 years now.  Total time in the US during this time has been about 30 days total.  We earn no money in the US but are still required to file a return every year.

Bob K

Yes, no matter your income, you must file a US return every year that you work abroad. In fact, there are many people who specialize in doing returns for expats.

Also, very importantly, the US is cracking down on overseas incomes. There is all sorts of new legislation that requires foreign banks to inform the US government if a person has a balance of $10,000 or above. I highly advise you seek counsel regarding this issue.

valeriaaz, I can only assume that the H&R Block person with whom you spoke hadn't worked much with foreign income issues. However, with that said, some countries do have agreements with the US regarding taxes. I know that when I lived in South Korea the treaty did affect my income in a positive way. I was able to receive my South Korean tax refund in the US without paying taxes.

http://www.irs.gov/Businesses/Internati … s---A-to-Z

I believe you should file your 2015 taxes in BOTH the US and France. I again can't stress enough that you contact a professional about this. As stressed mom suggested, the US embassy should be able to supply you with resources for this.

Finally, you should definitely receive counsel from a professional regarding your return date. I had always thought that my taxable income, upon my return to the US, had more to do with the number of days I had visited the US while I was a resident abroad. However, to my surprise, I discovered it had more to do with the date I originally left. I could only surmise there was an equation that is used to figure this amount. When I spoke with my tax person as to the appropriate time I could return home without paying taxes on my foreign income, I was surprised how it worked out. It was much sooner than I had previously anticipated.

As for Obamacare, OC has an open enrollment date (the time during which anyone under normal circumstances can enroll) cutoff every year. However, that cutoff is not relevant if a person has been previously insured and lost coverage as this is covered under a "life change" exemption. My understanding that this is the caveat under which returning expats are covered. I didn't have to deal with this issue myself, but I was allowed to enroll past the cutoff date when I left a US job and wasn't scheduled to return abroad for another 6 months. (I know how weird this type of thing sounds to someone who has lived abroad where medical coverage isn't such a huge issue.)

No matter what, valerian, please get some professional counsel about all of this. Such a move will help to insure that you not face an income tax fiasco upon your return to your homeland!!

What would happen to a person who doesn't file it for the US but only for the country they live in work in...? Would they be forced back and sent to prison or what?? Or just harassed? This is interesting, sounds like she is not in trouble, they said it was fine and she could deal with it when she goes back.

I know that some people opt to simply start filing because their income never showed up on the American banking system radar previously. By that I mean, their deposits never were more than about $5000 at a time and because of this, they were never questioned.

However, when the new laws came into effect regarding having $10,000+ in a foreign bank and that it became a responsibility of the bank to notify the US, they did start filing.

This is not what I would have done myself. Messing with the IRS, in my mind, can only lead to trouble!!

As for her being told that it was fine, I don't believe any tax person worth their salt would ever recommend an American citizen to not follow the law - and that is my understanding about what he did.

Well I guess if the person has under 10,000 they should be fine?? Mo money mo problems? I pretty sure there are quite a few expats who don't have a lot of money nor make a lot, guess they would be exempt maybe? One can only hope...

Not having more than $10,000 doesn't make a person exempt. It simply means that that person might be able to stay off of the US radar. Whether a person chooses to to follow the law is completely that person's choice.

Okay interesting... Or they could play dumb or really just not know! Crazy how many rules there is sometimes. People often move away and leave things behind outta site outta mind... Oops who is that in my rear view mirror, the IRS? But yes personal choice and everything will fall right into place.

The problem with the IRS is that they don't care if you know the law or not. Enforcing it is their only concern.

Yep. Good luck to all...

Dumb is not an excuse.  The fines and penalties can be HUGE.

Bob K