Lara45

Bob - what difference will it make by going for citizenship? in terms of tax/pension??

Bob

check the wiki....basically the non USC gets hosed in comparison to being a USC when receiving from a USC

Lara45

Many thanks to all of your replies - I'm a lot more calmer today!! I think my plan is roughly this:

I'm going to try and take things one small step at a time. First thing I need to do is to file our papers for citizenship (thank you for that Bob!) Secondly, pay minimum payments on everything and just cut the credit cards up - saving any extra that I can.

I also need to start brushing up on skills - so am looking around at courses/online courses etc.

Lastly, try and get the house in order - we'll try and rent it out. I know I couldn't just get up and leave it - I've worked too damned hard for the last few years. If I can manage it financially, I will go over to the UK for two weeks early part of next year, and go and see former employers/agencies just to get a feel for the job market.

Cricket - your reply was really helpful - thank you - it made me sit down and think. I'm not bitter though and definitely not blaming anyone else - I'll get there in the end - I usually do but sometimes just takes me longer than I'd like!!

exvj

I keep wondering about citizenship as, unlike most other countries, it puts you on the hook for US taxes 'forever'. But dumping it isnt much more difficult than dumping the green card

They still like you to go to the London Embassy so you can say you mean it
- have a beer in Covent Garden and go home and thats it done. A day out in London. The waiting trime for renunciation has gone up from a few days to 3.5 months because of recent demand



Hoever I am looking into this before I decide : >>>>


In 1996, Congress tried to address a wave of tax-driven expatriation by the wealthy by requiring former citizens to file tax returns for a decade and forbidding Americans who renounced their passports for tax reasons from visiting the United States.

http://www.nytimes.com/2006/12/18/wo...gewanted=print

HighSpeedGrandma

Apparently you don't have to be a citizen to be liable for US taxes forever. Just having a green card applies too I believe. Not sure how long you have to have had your GC for. But that is what I read somewhere, or someone on here mentioned it.

exvj

Heck I never heard that one....

HighSpeedGrandma

Yep, that is why I decided I may as well go for the citizenship. I have paid taxes for ever, so I may as well reap the benefits of citizenship.
But that has been a whole other story.
Definitely check up on the GC tax issue. I am positive that is the case.

HighSpeedGrandma

I found this too...
As a permanent resident (greencard holder) you are required to file a
tax return whether you are living in the US or not. You must report
your worldwide income and, if necessary, pay any taxes. However, you
may be entitled to the foreign earned income exclusion which could
eliminate any income tax.

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

exvj

I will do - I know If I hand in my green card now, I would have to report 2009 taxes wherever I am resident for the rest of the year, but I have never heard that a person who has held a green card at any time must report US taxes for the rest of their lives

If a citizen who renounces their citizenship is only is on the hook for a few years, then it would seem harsh for an ex resident to be hooked for life

My first reaction is sceptical, but nonsensical things never stopped the tax man, so I will keep an open mind until I can check further

exvj

Yes that is understood and apart from my UK government SERVICE not State pension which is taxed in the UK and is exempt from US reporting , (the only thing I have ever found that is), I do have to report wordwide income

However I am highly sceptical that a person who hands in their green card and goes home to a foregn country, then has to do US tax reporting for the rest of their lives. It doesn't sound right at all. When I was young and brash I would have said that it's wrong, but nowadays I keep an open mind until I see chapter and verse

exvj

Found this:

A 15 year holder of a GC who has over $2 mill in assets or annual tax liability of $139k can be charged to income tax on the unrealised value of their home's gain !!!!

http://www.taxmeless.com/USCitizenRenounce.htm

So they do get nasty with GC holders who go over the wall - but cant find a lifetime hook yet

Bob

It's 10 years as well...I don't know how long you've had to have had the greencard, probably anyone who got one.But the 10 years of filing taxes I'm sure about.

Jerseygirl

I think it's around 8 yrs for the GC.

cricket1again

Glad to offer help. Just one thing........have you looked at consolidating your credit card debts onto a 6 month 0% interest deal? Would save you loads.

Remember you won't get a credit card in the UK because you'll have no credit rating so you might need to keep one credit card.
That old leverage plan I mentioned???

Lara45

Cricket - good idea! Ive started to look at consolidating my credit card debts -my husband though this evening is starting to talk about filing bankruptcy ... for himself ... the only huge worry I have about this is that when I come to submit paperwork for his visa, will that effect the visa process? Are there any questions on the paperwork to that effect? i.e have you ever declared bankruptcy? etc et

Does anyone know the answer???