ACA writes to the Department of Treasury on Healthcare taxes
On 1st October 2013, American Citizens Abroad (ACA), “The voice of Americans Overseas” wrote to the US Department of the Treasury airing their concerns about Healthcare taxes. ACA raised the point that the 3.8% Net Investment Income Tax (NIIT) cannot be reduced by application of foreign tax credits; ACA therefore requested that when the Department of Treasury finalizes the regulations, measures will allow Americans abroad to apply foreign tax credits against the 3.8% Additional Medicare Tax.
Furthermore, ACA expressed their concerns regarding the 0.9% Additional Medicare Tax; and requested that American residents abroad be exempted from the 0.9% Additional Medicare Tax in the final Treasury regulations.
Last but not least, ACA requested that the Treasury encourage Congress to eliminate altogether the imposition of US Federal Insurance Contributions Act (FICA) taxes on self-employed Americans abroad.