TAX-AIDE ACA Exemption C Identification 1 December 9, 2015 Citizens Living Abroad and Certain Noncitizens

TAX-AIDE Agenda  What makes Exemption C so different from other exemptions?  Who qualifies for Exemption C  Bona Fide Residents Exemption  Physical Presence Test Exemption  Registered Resident Alien  Noncitizen and DACA 2

TAX-AIDE Why is Exemption C Special  TY 2014 Centro San Juan Diego site accounted for 289 or 1/3 of IRS ACA Exemptions in Colorado  98% of those were Exemption C  Other sites should first look at C before looking at other exemptions or running an affordability test 3

TAX-AIDE Who Qualifies for Exemption C  A US Citizen who was a bona fide resident of a foreign country or US Territory  A US Citizen or resident who spent at least 330 full days outside of the US during the 12 month period  A resident alien who was a citizen of a foreign county of which the US has an income tax treaty  Not a US Citizen, not a US National, and not an individual lawfully present in the US 4

TAX-AIDE US Citizen, Bona Fide Residence  A US Citizen who was a bona fide resident of a foreign country or US Territory  Bona Fide Resident Test in Pub 54  Has no permanent resident in the US  Is a resident of a foreign country for an indefinite or extended period  Not likely to come to AARP for tax services 5

TAX-AIDE US Citizen Abroad  A US Citizen or resident who spent at least 330 full days outside of the US during the 12 month period  Physical Presence Test in Pub 54  Does not depend on the kind of residence you establish, your intentions about returning, or the nature and purpose of your stay abroad  Not likely to come to AARP for tax services 6

TAX-AIDE Registered Resident Alien  A resident alien, who was a citizen of a foreign county, of which the US has an income tax treaty  Pub 54 - Table 6-1 for list  Includes a nondiscrimination clause  Were a bona fide resident of a foreign country for the tax year  Would have a Social Security card, green card, or other domestic or foreign identification 7

TAX-AIDE Noncitizen  Not a US Citizen, not a US National, and not an individual lawfully present in the US  File taxes with Individual Tax Identification Number (ITIN) or with an application for an ITIN, using foreign or domestic identification  Have not registered with Homeland Security or Social Security as a resident alien 8

TAX-AIDE DACA  Deferred Action for Childhood Arrivals (DACA) also qualify for an exemption. DACA aka “Dreamers” which, by some, believe this to be a derogatory terminology for their status. Thus, not willing to announce they are “Dreamers”  Are not considered “lawfully present” and therefore are eligible for the exemption  Brought to US as child, by parents that were illegal  Have filed with Department of Homeland Security and qualified as DACA  Have a SSN with special “DHS” designation on card  Usually have Medicaid as medical coverage 9

TAX-AIDE DHS Authorization SS Cards 10

TAX-AIDE Questions Thank You 11