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US citizens make something of a deal out of it, as you can see from expat forums every spring when tax-filing season comes. However, relatively few American cit
by Mediterraneo10 5y ago
US citizens make something of a deal out of it, as you can see from expat forums every spring when tax-filing season comes. However, relatively few American citizens abroad choose to renounce their citizenship because they find it useful to retain it. The minimum income threshold to pay income taxes (otherwise you just file) is ~$100,000, so that generally means most middle-class people don’t have to pay.
The real pain is for people who don’t really think of themselves as US expats, but who have US citizenship through an accident of birth and perhaps haven’t thought of that in years. For them, it is when e.g. a bank in their country suddenly doesn’t want to accept them as a customer due to the onerous reporting requirements, that they are aghast at the situation.
> Are there even any other countries that do this?
Reportedly Eritrea.
- beckman466 5y ago> The minimum income threshold to pay income taxes (otherwise you just file) is ~$100,000, so that generally means most middle-class people don’t have to pay. I wanted to know this, thank you!
- 252452d 5y agoIt costs a few thousand to renounce it anyway. The Foreign Earned Income Exclusion is what you're referring to.
- slavik81 5y ago> However, relatively few American citizens abroad choose to renounce their citizenship because they find it useful to retain it. Also because the US government will not allow you to renounce your citizenship if you are doing so for tax reasons.
- Mediterraneo10 5y agoNot really. Most US expats who would want to renounce their citizenship, know to tell the consul at the renunciation appointment a vague "I have citizenship of country X now and I no longer identify with my American citizenship," and not, "I don’t want to file US taxes anymore."