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>you still have to pay US income taxes for ten years after you renounce your citizenship Do you have a source for this? I've never heard about it. All I know

>you still have to pay US income taxes for ten years after you renounce your citizenship Do you have a source for this? I've never heard about it. All I know is they make sure your last N years of taxes are in order, charge you expatriation tax (if required), and ensure you have no unpaid federal student loans.

gozur88 11y ago
It's in the wiki: https://en.wikipedia.org/wiki/Expatriation_tax#United_States https://en.wikipedia.org/wiki/Expatriation_tax#United_States "Under the new law, any individual who had a net worth of $2 million or an average income tax liability of $139,000 for the five previous years[10] who renounces his or her citizenship is automatically assumed to have done so for tax avoidance reasons and is subject to additional taxes. Furthermore, with certain exceptions covered expatriates who spend at least 31 days in the United States in any year during the 10-year period following expatriation were subject to US taxation as if they were U.S. citizens or resident aliens." The key there is "assumed to have done so for tax avoidance reasons". I would note this is a guideline, and the IRS can make the same determination for other reasons. Basically if you pay nontrivial amounts of taxes before you expatriate the USG assumes you should keep paying.
- brobinson 11y ago
  Ah, so it only applies if you go back to the US. Good to know. Thanks.
  - gozur88 11y ago
    Read it again. It applies if you spend time in the US or you paid above a certain amount in tax before you expatriated.
    - brobinson 11y ago
      >covered expatriates who spend at least 31 days in the United States in any year Doesn't "covered" here mean people who had to pay expatriation tax? That seems to indicate it's an AND rather than an OR. Thanks for your input!
      - gozur88 11y ago
        Read the very first sentence. There's no qualifier. The thirty day part applies to you if you don't pay much in taxes.

gozur88 11y ago

It's in the wiki: https://en.wikipedia.org/wiki/Expatriation_tax#United_States https://en.wikipedia.org/wiki/Expatriation_tax#United_States "Under the new law, any individual who had a net worth of $2 million or an average income tax liability of $139,000 for the five previous years[10] who renounces his or her citizenship is automatically assumed to have done so for tax avoidance reasons and is subject to additional taxes. Furthermore, with certain exceptions covered expatriates who spend at least 31 days in the United States in any year during the 10-year period following expatriation were subject to US taxation as if they were U.S. citizens or resident aliens." The key there is "assumed to have done so for tax avoidance reasons". I would note this is a guideline, and the IRS can make the same determination for other reasons. Basically if you pay nontrivial amounts of taxes before you expatriate the USG assumes you should keep paying.

brobinson 11y ago
Ah, so it only applies if you go back to the US. Good to know. Thanks.
- gozur88 11y ago
  Read it again. It applies if you spend time in the US or you paid above a certain amount in tax before you expatriated.
  - brobinson 11y ago
    >covered expatriates who spend at least 31 days in the United States in any year Doesn't "covered" here mean people who had to pay expatriation tax? That seems to indicate it's an AND rather than an OR. Thanks for your input!
    - gozur88 11y ago
      Read the very first sentence. There's no qualifier. The thirty day part applies to you if you don't pay much in taxes.