The Odd Case of a British Citizen born in US but Dual Citizen/Living in Canada

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Dec 31st 2012, 1:51 am

#61

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Re: The Odd Case of a British Citizen born in US but Dual Citizen/Living in Canada

Quote:

Originally Posted by Steve_

There is also currently a campaign in the US to make it harder for people to renounce US citizenship for tax reasons, basically by making it impossible to reclaim it if you renounce it.

Why on earth would someone renounce if they had some intention of reclaiming?

Wash yer brain out.

Dec 31st 2012, 3:26 am

#62

nun

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Re: The Odd Case of a British Citizen born in US but Dual Citizen/Living in Canada

Quote:

Originally Posted by Steve_

My personal view is that it is pointless to renounce citizenship in this situation, because you've got to pay all your back taxes to do it (if any) and if you've been a US citizen for more than 8 years you're subject to the 8854 requirement anyway, so you still have to file a non-resident tax return.

Once you renounce US citizenship you would only have to file a non-resident tax return if you had US source income. You can avoid that by moving your money out of the US and even if you have US retirement accounts most tax treaties along with a W-8BEN will exempt them from US taxation.