31–40 of 93 posts
The article fails to mention on which passport he travels which is quite relevant. The other passport you own will be linked to another country, financial system... and taxes. not a very good article, without comparing U.S vs another country tax system/medicare pros and cons, it is impossible to make an enlightened decision, therefore making the title of this article irrelevant. we would need one article per country…
Probably bad idea to drop your passport if you don't have decent alternatives in place
Earlier quoted context omitted.
from my understanding the US is the only G20 country that taxes citizens living and working abroad. given that I'm not sure your statement makes sense about when you should give up your US citizenship, as you'll still be out of pocket if you earn less than $200k pa. On the flip side currently if you renounce your US citizenship it immediately triggers a 5 year back tax audit by the IRS and you have to clear your bill…
No you're not really if you know what the FEIE is. You don't get taxed on the first $112,000 of earned income this year. It's one extra page you need to file with your taxes. That means no income tax on any earned income up to that amount. "Income tax" on "earned income" does not include Social Security, medicare/caid tax so you still pay some. It also doesn't cover "unearned" income like capital gains or rent. I sai…
Don't! That passport has tremendous value. It will be a huge Opportunity Loss. Plus the way the world is shaping up, you will be better off with the country's Economic/Financial/Military Systems behind you.
What support can he expect? under what circumstance? (hint-- it might be less than you think)
US citizens who live abroad for at least 330 days a year, or establish permanent residence abroad, may qualify for the Foreign Earned Income Exclusion (FEIE). that FEIE excludes the first $112,000 of income from federal income tax, double that for a married couple. Social Security/Medicare (aka self-employment tax) are not excluded. Most states will want state income tax, so establish residence in a state with no inc…
unless you earn less than $400/yr.
> International Tax Gap Series
> If you are a self-employed U.S. citizen or resident, the rules for paying self-employment tax are generally the same whether you are living in the United States or abroad.
> The self-employment tax is a social security and Medicare tax on net earnings from self-employment. You must pay self-employment tax if your net earnings from self-employment are at least $400.
https://www.irs.gov/individuals/international-taxpayers/self...
US citizens who live abroad for at least 330 days a year, or establish permanent residence abroad, may qualify for the Foreign Earned Income Exclusion (FEIE). that FEIE excludes the first $112,000 of income from federal income tax, double that for a married couple. Social Security/Medicare (aka self-employment tax) are not excluded. Most states will want state income tax, so establish residence in a state with no inc…
>Most states will want state income tax, so establish residence in a state with no income tax before going nomading. Is this true? I thought that was only the case if they could prove you are an active resident. Of course, if you maintain a mailing address or residence in California/NY then you better believe they'll make sure you pay. If you cut ties completely, they don't have grounds to come after you.
If you have an address outside the US, it is a good idea to tell the IRS to mail you at that address, the states seem to be content with that as evidence that you live out of state.
Earlier quoted context omitted.
from my understanding the US is the only G20 country that taxes citizens living and working abroad. given that I'm not sure your statement makes sense about when you should give up your US citizenship, as you'll still be out of pocket if you earn less than $200k pa. On the flip side currently if you renounce your US citizenship it immediately triggers a 5 year back tax audit by the IRS and you have to clear your bill…
No you're not really if you know what the FEIE is. You don't get taxed on the first $112,000 of earned income this year. It's one extra page you need to file with your taxes. That means no income tax on any earned income up to that amount. "Income tax" on "earned income" does not include Social Security, medicare/caid tax so you still pay some. It also doesn't cover "unearned" income like capital gains or rent. I sai…
Earlier quoted context omitted.
from my understanding the US is the only G20 country that taxes citizens living and working abroad. given that I'm not sure your statement makes sense about when you should give up your US citizenship, as you'll still be out of pocket if you earn less than $200k pa. On the flip side currently if you renounce your US citizenship it immediately triggers a 5 year back tax audit by the IRS and you have to clear your bill…
No you're not really if you know what the FEIE is. You don't get taxed on the first $112,000 of earned income this year. It's one extra page you need to file with your taxes. That means no income tax on any earned income up to that amount. "Income tax" on "earned income" does not include Social Security, medicare/caid tax so you still pay some. It also doesn't cover "unearned" income like capital gains or rent. I sai…
> medicare/caid tax so you still pay some
exactly. You're still 'on the hook' annually to pay for subpar services you'll most likely never use, assuming they exist when you're eligible for them.
> I'm sure citizenship is worth at least $88000 per year to most people.
I'm sorry, but that makes me laugh HARD. By your math I would have paid approximately $1.9 million dollars in the past 21 years just to hold the US passport I might have used 10-15 times in that timeframe to gain entry to the US. Do you honestly think the right to visit the US 15 times over 2 decades is worth $2 million USD? Especially when you can visit the US without a US passport fairly easily (assuming you're not a cryptobro acting like a fool?).
Full disclosure, I'm a US expat who's lived in Australia for over 20 years and was granted Australian Medicare YEARS before I was a permanent resident.
Earlier quoted context omitted.
I'm not sure I am convinced that Saverin should have renounced, I think that decision may end up a modern example of Solon's advice to Croesus, but maybe that is just my western liberal prejudice against Singapore coming through.
He saved a massive amount on capital gains tax, and any possible wealth tax that might be created in the US in the future.
If you're born in the US and renounce your citizenship, can you reacquire it later on?