Osipi
Member - in Memoriam
- Joined
- Jul 2, 2008
- Messages
- 17,267
- City
- On the west side of North up from Back
- Country
- United States
As a dual citizen with an American parent, I was not born in the USA, never made in any money there and have never lived there, I'd renounce my American citizenship in a minute if I could. I have no desire to ever move there as I live in country with a much better health care system. My loyalty is to the country where I was born and have lived all my life. Not all of us want to be American.
Unfortunately the American IRS (Internal Revenue Service) has put people like me in a double jeopardy position.
I'm supposed to file American taxes as well in my own country - supposed to pay double taxes - taxes to both countries!!! I don't file American taxes because my income is below a certain threshold. (I get tax refunds from my home country). At this point in time, the IRS doesn't bother with lower income dual citizens. I have been advised that however, currently if I had an annual income of $1 million or over, I would have to file with the IRS or be in legal trouble. (Our financial institutions must report holdings to the IRS for dual American citizens due to a treaty my country signed with the USA.) When my American parent dies, the IRS will tax their estate along with this country also taxing it. (They also hold dual citizenship and have spent 3/4 of their life outside the US in this country.)
American taxes will be a concern for both Meghan and Prince(ss) Sussex. Unlike other countries, the US taxes nonresident citizens, my home country and most countries do not. I really doubt the British Royal Family wants to have to pay American taxes.
If I attempt to renounce my American citizenship, I have to agree to a 5 year audit by the IRS, a very expensive process that I cannot afford as well as paying a very large fee for renunciation which I also cannot afford.
Frankly, the American citizenship is a millstone that I wish my parent had never gotten for me. (The USA changed its tax policies to taxing nonresidents years after I became a dual citizen.)
Dual citizenship + dual taxes (in the case of a Baby Sussex with a substantial inheritance/wealth) = dual pain in the back of the front if you ask me.
Personally, I am of the opinion that Meghan should renounce her US citizenship upon becoming a citizen of the UK and never, ever urge their child(ren) to claim US citizenship. Neither of them really need that US citizenship really but the US is always looking for another citizen to tax.