I wonder if Snowden files taxes?
In many countries it's hard or near impossible for US citizens to get bank accounts and other financial services, I guess due to them not wanting to deal with reporting requirements? Europeans, Aussies, and pretty much everyone have it way easier. Makes me so mad.
AIUI, it's not just reporting requirements but the potential for massive fines that's driving this.
https://www.forbes.com/sites/robertwood/2015/02/15/savvy-lon...
> you'll be denied a visa if you ever want to visit the US again.
Do you have a source for this?
Then why take the time to post it?
Seems like an assumption about the value of other people's time vs. your own.
Boris Johnson (the UK Prime Minister) was a US citizen until sometime in 2016. His UK political office roles until then included serving as a MP (2000-2008), Mayor of London (2008 - 2016), and UK Foreign Secretary (2016 - the time he relinquished his US citizenship). Reports indicate that he gave up his US citizenship to avoid the IRS taxing him.
For some cases it sounds like only if you have the intention of giving up your citizenship, then you have to get a "Certificate of Loss of Nationality". But I'm not a expert in this area, but I can see where this idea is coming from.
Such employment, however, will result in one's
expatriation only if done voluntarily with the intention
of relinquishing U.S. citizenship. Running for foreign
office, even foreign head of state, is not a potentially
expatriating act; only accepting, serving in, or
performing the duties of a foreign office are potentially
expatriating as described above.
The Department has adopted an administrative presumption
that U.S. nationals intend to retain their U.S.
citizenship when they naturalize as nationals of a
foreign state, declare their allegiance to a foreign
state, or accept non-policy level employment with a
foreign government.
The presumption that a person intends to retain U.S. nationality is not applicable when the individual:
1. formally renounces U.S. nationality before a consular officer;
2. serves as an officer in the armed forces of a foreign state engaged in hostilities with the United States; or
3. takes a policy level position in a foreign state
Cases in categories 2 and 3 will be developed carefully by a U.S. consular officer to ascertain the individual's intent toward U.S. nationality.
Caused a bit of a hoohah with the Canadians.
[0] https://www.un.org/en/udhrbook/pdf/udhr_booklet_en_web.pdf
Here is a full rundown of the process: https://www.businessinsider.com/how-to-renounce-us-citizensh...
Most citizens never hit the threshold to actually pay except if you file from a known tax haven. Income up to $115k is untaxed and any other taxes you do pay are deductible.
That number seems pretty high unless you have very complicated income (in which case you likely have a lot of money too)
Also worth mentioning is that Foreign Income is taxed differently, so while you technically still have to pay taxes, I believe for most people who work mostly in a foreign country don't have to pay very much.
Yes, like, say, having an accountant that can read and understand your taxes where you live in Italy and then use that information to file US taxes. And of course they'll need to understand the tax treaty between the two countries so you don't end up paying extra. Of course it's complicated and a huge pain in the ass! And that's with a relatively normal, stable, well-established country with a lot of US citizens living in it.
I should add: $400 is also a bigger deal when you live somewhere and don't earn as much as a software developer in the US.
It's not as simple as it first seems.
If you claim the foreign earned income exemption (FEIE) so you don't pay anything on the first $115k or whatever, then you can't claim a credit for all the taxes you paid in the country where you live. You can only claim a portion.
So, if your income goes up above some certain amount, you're better off (lower US tax bill) giving up the FEIE so you can get a credit for all foreign taxes paid.
But, if you do that, then you can't claim FEIE again within 5 years, unless you get special permission from the IRS. To apply for this permission (with no guarantee) you must pay a fee of a few thousand USD to the IRS.
Did Eritrea cleanup their act?
I thankfully don't get double-taxed here in Canada, but I'm pretty sure it's possible to have a marginal tax rate greater than 100% between U.S. Federal income taxes and some other systems.
I bet many of your fellow Canadian taxpayers (of which I am one) are not so thankful for this arrangement. Then again, I fall strictly in the "citizenship is a privilege, not a right" camp.
Well, I pay absolutely all Canadian taxes to the full extent, and I can't make use of TFSAs; what do my fellow Canadians have any right to complain about?
> Then again, I fall strictly in the "citizenship is a privilege, not a right" camp.
Well, I am a citizen, and I've lived in Canada my whole life.
If you're a Canadian who lives in Canada and pays Canadian taxes, there's no controversy.
It's not "double-taxed", it's double-taxed. The U.S. system in fact makes it possible for the same income to be taxed twice at the full rate. And you didn't need to infer that I'm Canadian, I said it right in my comment.
I'm thankful I'm covered by the Canadian agreements, which allow me to credit my Canadian tax payments against (most of) my U.S. tax liability. I still have to file taxes in the U.S. like every other U.S. citizen, I still have to file FBARs with FinCEN like every U.S. citizen. I still have to pay Canadian taxes like everyone else who makes Canadian-source income, I still must pay the OHP like every Ontarian, I still must pay into CPP even though I may never be able to take it. Even if I didn't make Canadian-source income I would still be paying property taxes either directly or indirectly, paying sales taxes every time I bought something other than groceries, and that's where the roads and the schools get their money; though because of some combination of my personality and the quality of the schools I never did get more than primary school out of the system here before I left to work and began paying net taxes in my second year of full time employment.
I don't know why you're being so hostile. If somehow this arrangement allowed me to not pay taxes lawfully, how would that be my fault? It would be all of ours.
Frankly it's appalling that they manage to make things cost enough to justify these taxes, especially as every Canadian sees these obscene transfers of wealth from every taxpayer to Bombardier, the leniency extended to SNC Lavalin, the "equalization" process by which unproductive Canadians feast on productive ones for the privilege of living in equal comfort without ever considering moving for work; but I do pay them, you're welcome.
Why is it ridiculous?
And what makes you so sure that less than 1% of US citizens living outside the US evade tax?
You could call it ridiculous because it’s so unusual. But the reason most countries don’t do it is that taxes are a supposed to be a deal - the government forces you to hand over money and pays for services you use in return. Expats - they aren’t using those services.
And your point about tax evaders is moot - taxing global income only hurts law abiding expats, not evaders. Seems like you’re being hostile and skeptical for personal reasons.
Perhaps you're forgetting about the evacuation of Lebanese Canadians in 2006, "Citizens of Convenience" and the associated changes in Canadian citizenship laws. It's not without controversy.
I'm sure there are other controversies and things going on, but that's what we were talking about.
This controversy is directly related. You should inform yourself.
Canadian taxpayers spent $100MM evacuating Lebanese Canadians from Lebanon in 2006, many of whom were citizens but had never paid taxes to Canada. We now bill for extrication. Seems like a fair compromise.
You made three assertions. One was factually incorrect. One was a matter of opinion, about which I was curious to understand your reasoning. The third seemed like it was unlikely to be true and hard to get data about, so again I was curious.
I'm sorry if my pointing out an untrue statement and asking for more information about others seems hostile.
My personal reason for wanting to point out the incorrect assertion about the US being the only country: https://xkcd.com/386/
When I declare my taxes here in Belgium the form always asks me if I have any income / assets abroad (I don't). I guess "tax worldwide income" refers to "if you also live abroad" ?
What you're talking about is if, living in Belgium, you have income from other countries that needs to be reported, which seems fair enough - after all, you live and pay taxes in Belgium, not those other countries.
I’ve yet to meet anyone who lived overseas and had to pay the IRS.
He didn't say pay taxes; he said file taxes. Every year I have to tell the US government how much I made, and then explain why I don't owe them any money (i.e., already paid tax on it to the UK). It's a stressful hassle even if you don't end up owing anything.
I’m asking if you ever had to pay taxes? Plenty of people complain about filing paper work but I’ve never met anyone who owed anything.
I've met several, and can assure you they exist.