Dependent Living Outside of the US, Do I Pay the Fee?
I claim a niece on my tax returns, but she lives in Mexico . Do I need pay penalty if she does not have coverage?
Answer
If a dependent is living outside of the US for more than 330 days in a year, you don't owe the fee for them, even if you claim them. You'll need to file exemption form 8965 to claim the exemption.