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Foreign nationals who live in the United States for a short enough period that they do not become resident aliens for federal income tax purposes are not subject to the individual shared responsibility payment even though they may have to file a U.S. income tax return.
U.S. citizens who are not physically present in the United States for at least 330 full days within a 12-month period are treated as having minimum essential coverage for that 12-month period. In addition, U.S. citizens who are bona fide residents of a foreign country (or countries) for an entire taxable year are treated as having minimum essential coverage for that year. In general, these are individuals who qualify for a foreign earned income exclusion under section 911 of the Internal Revenue Code. Individuals may qualify for this rule even if they cannot use the exclusion for all of their foreign earned income.
If the employee is a US citizen or a Resident alien living in the US, then they are required to have coverage.
If the employee is a US citizen but not physically in the US working and meet the requirements to exclude their income they are not required and no proof is required except their ability to exclude foreign earned income. Individuals who qualify for this rule should file Form 8965,Health Coverage Exemptions, with their federal income tax returns.
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