Can it be worse to be a US Citizen?
Sep 9th 2014, 2:07 pm
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Joined: Sep 2014
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Can it be worse to be a US Citizen?
I live and work in the US at present.
I intend to retire to the UK and will receive state and private pensions in both places.
I am entitled to apply for US citizenship, which would be handy for travel, but am not sure if there could be a downside.
It seems to me that if I am a US citizen I must declare all my income, including income from the UK, in my US tax return, but if I am a non-resident alien then I need only declare my US-derived income.
The latter on the surface looks a better bet. But I suspect that in reality the US would take into account tax paid in the UK on my UK-sourced income, and so my tax bill would actually be the same regardless of whether or not I am a citizen.
I this is the only potential negative to taking US citizenship should I go for it?
Thanks
I intend to retire to the UK and will receive state and private pensions in both places.
I am entitled to apply for US citizenship, which would be handy for travel, but am not sure if there could be a downside.
It seems to me that if I am a US citizen I must declare all my income, including income from the UK, in my US tax return, but if I am a non-resident alien then I need only declare my US-derived income.
The latter on the surface looks a better bet. But I suspect that in reality the US would take into account tax paid in the UK on my UK-sourced income, and so my tax bill would actually be the same regardless of whether or not I am a citizen.
I this is the only potential negative to taking US citizenship should I go for it?
Thanks
