MA Healthcare - spouse living abroad

[wmtusa]

Hi All,

Question:  Taxpayer is MA resident has HC and Spouse living abroad do not have Health coverage in USA, but has coverage in Home Country for the whole year. Spouse do not have any income.  

Can they file joint taxes in MA? And if yes, How about HC penalty? Does she has to pay or exempt as she is not in MA?

[George4Tacks]

You will likely get an answer quicker by posting this under your product. Proseries?

This part of the form is to submit questions and see articles about how wonderfully this new forum works.

[itonewbie]

The first question to ask is whether the spouse residing abroad (in the Home Country, as you mentioned) was a domicile resident of MA.  If so, relocation from MA to another country on its own does not terminate MA domicile unless facts and circumstances clearly support that change - and MA is a real stickler with that.  Assuming the spouse was a resident of MA for the same period as the taxpayer during the tax year, a joint return may then be allowed for MA tax purposes.  Otherwise, the couple must file separately.

Assuming the spouse was a resident of MA, the MA individual mandate should apply as far as I can tell but you like to do a bit more research.  That is because 830 CMR 111M 2.1(2) defines resident the same way as M.G.L. c. 62, §1(f) and MA has no carve out for taxpayers abroad like the one for MEC under the IRC.