Renunciation of US Citizenship & tax filing advice for Son
#16
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Re: Renunciation of US Citizenship & tax filing advice for Son
Thank you Durham_lad, I must have missed your reply while I was posting.
Oh my goodness - I didn't know about ISA's and work pensions - must tell my son at once as he's starting his first job next month and is planning on opting into the employer pension scheme and opening up a LISA!!!
It really is a pita being a US citizen living abroad. We had none of this being UK citizens in the US!
Oh my goodness - I didn't know about ISA's and work pensions - must tell my son at once as he's starting his first job next month and is planning on opting into the employer pension scheme and opening up a LISA!!!
It really is a pita being a US citizen living abroad. We had none of this being UK citizens in the US!
#17
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Re: Renunciation of US Citizenship & tax filing advice for Son
In fact what exactly are all these advantages of being a USC - apart from being able to live there indefinitely and potentially be drafted into their military against your will? I honestly can't think of one other benefit, especially if you are not living there and have no ties with the country whatsoever.
But my original question was about being fully tax compliant for 5 years when you've not had any income (eg been a full-time student) so haven't needed to file, and it seems you don't - so he is!
#18
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Re: Renunciation of US Citizenship & tax filing advice for Son
My son opted into his UK employer's pension scheme and contributes to get the company match. No extra form filling required when filing taxes with the IRS although the company match is considered to be remuneration and therefore taxable. He keeps things simple and excludes all his UK wages using the Foreign Earned Income Exclusion (FEIE - form 2555). He files his own taxes using TurboTax. The value of the money in the company pension plan does need to be reported on an FBAR, assuming the FBAR limit of $10,000 is reached (max value of all financial accounts).
My daughter is at uni too and will have a year in industry soon but being in mid Wales is nowhere near an Embassy to schedule an appointment so has been putting it off. I'm sure the first tax filing will focus her mind a bit!
#19
Re: Renunciation of US Citizenship & tax filing advice for Son
Hopefully your son is under 18 1/2 as renouncing citizenship is slightly less complicated. A lot of UK banks now don't want to touch any US citizen. There are pros and cons. If he wants to move to the US , much easier if he has a US passport.. There is a lot to weigh up. Anything financial he will need to mention that he is a US citizen if he wants to stay compliant.
#20
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Re: Renunciation of US Citizenship & tax filing advice for Son
Hopefully your son is under 18 1/2 as renouncing citizenship is slightly less complicated. A lot of UK banks now don't want to touch any US citizen. There are pros and cons. If he wants to move to the US , much easier if he has a US passport.. There is a lot to weigh up. Anything financial he will need to mention that he is a US citizen if he wants to stay compliant.
#21
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Re: Renunciation of US Citizenship & tax filing advice for Son
Exactly.
In fact what exactly are all these advantages of being a USC - apart from being able to live there indefinitely and potentially be drafted into their military against your will? I honestly can't think of one other benefit, especially if you are not living there and have no ties with the country whatsoever.
In fact what exactly are all these advantages of being a USC - apart from being able to live there indefinitely and potentially be drafted into their military against your will? I honestly can't think of one other benefit, especially if you are not living there and have no ties with the country whatsoever.
#22
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Re: Renunciation of US Citizenship & tax filing advice for Son
did your children return/stay to the us or return to and stay in the U.K.?
#23
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#24
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Re: Renunciation of US Citizenship & tax filing advice for Son
My eldest was 18 and just finishing 12th grade when we moved back as a family,. He was adamant that he wasn't going with us so he remained- working and living with friends. He cut it for 18 months before asking for a ticket over.
My kids could end up living anywhere in the world, but that doesn't mean I'd follow them! I know many parents who sold up to be closer to their children, only for said children to later be relocated thousands of miles away!
#25
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Re: Renunciation of US Citizenship & tax filing advice for Son
A lot of UK banks now don't want to touch any US citizen. There are pros and cons. If he wants to move to the US , much easier if he has a US passport.. There is a lot to weigh up. Anything financial he will need to mention that he is a US citizen if he wants to stay compliant.