Comment on What are some of the things someone permanently relocating away from the US should be aware of?

JASN_DE@feddit.org ⁨5⁩ ⁨weeks⁩ ago

• count_dongulus@lemmy.world ⁨5⁩ ⁨weeks⁩ ago

  If you plan to return

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  • mkwt@lemmy.world ⁨5⁩ ⁨weeks⁩ ago

    Even if you never plan to return, you are still (legally) on the hook to file a 1040-NR form with the IRS every year.

    There’s a foreign earned income tax credit: this reduces your US tax bill by any income tax you paid to your residence country. For many expat working stiffs, this means they don’t have to pay anything to Uncle Sam, but they still have to file a tax return.

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    • untorquer@lemmy.world ⁨4⁩ ⁨weeks⁩ ago

      There’s also an income exclusion under $125k/yr.

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  • merc@sh.itjust.works ⁨5⁩ ⁨weeks⁩ ago

    Even if you plan to renounce your citizenship, that’s a long (and often expensive) process and you have to keep filing and paying taxes until it’s done.

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  • Venator@lemmy.nz ⁨4⁩ ⁨weeks⁩ ago

    Maybe also check your current countries extradition treaty 😅

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  • untorquer@lemmy.world ⁨4⁩ ⁨weeks⁩ ago

    If you pan to keep and use your passport*

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• merc@sh.itjust.works ⁨5⁩ ⁨weeks⁩ ago

  The US is one of only 2 (?) countries in the world that does citizenship-based taxation.

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  • iii@mander.xyz ⁨5⁩ ⁨weeks⁩ ago

    Is there an exit tax when you leave the US? France for example has that, and the new Belgian government wants to introduce it as well.

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    • tychosmoose@lemm.ee ⁨5⁩ ⁨weeks⁩ ago

      Not when you change residency, but if you relinquish your citizenship: en.wikipedia.org/wiki/Expatriation_tax#United_Sta… or your residency has been revoked.

      So if you remain a US citizen you owe normal annual tax (minus a credit for foreign taxes paid).

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      • untorquer@lemmy.world ⁨4⁩ ⁨weeks⁩ ago

        Seems like it only matters if your taxable income is over ~$130k? So with foreign income exclusion that would mean you’d have to make over ~$250k/year for the 5 previous years.

        At that point you can just pay your problems away…

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    • merc@sh.itjust.works ⁨5⁩ ⁨weeks⁩ ago

      I think there is, but it doesn’t apply universally. I think it was one of those things designed to catch the ultra-rich who were renouncing their citizenship to get lower taxes elsewhere, but it ends up catching a lot of people who are middle class.

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    • lath@lemmy.world ⁨5⁩ ⁨weeks⁩ ago

      I believe someone complained recently that there is one.

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