Renunciation of US citizenship
Sep 4th 2007, 2:03 pm
#31
MODERATOR
Joined: Nov 2006
Location: Hong Kong, mostly.
Posts: 5,214
Re: Renunciation of US citizenship
As I look through my old passports at the stamps they bring back all sorts of memories. God forbid we go to a totally digital card where the stamps are no longer in ink but just unseen bits of data.
Sep 4th 2007, 2:04 pm
#32
Account Closed
Joined: Sep 2005
Posts: 15,455
Re: Renunciation of US citizenship
Years ago I took the boat from Kaohsiung, Taiwan to Macau. At immigration control an older Chinese woman cut in front of me (as is their right it appears) and plonked sixteen passports on the immigration officers desk and loudly proclaimed, "They all me, all me. Please to stamp all!" I was a bit intrigued and had a bit of a peer over her shoulder. Sure enough there were sixteen passports issued in her name with her photograph.
The Portuguese immigration officer had a bit of a slow perusal through each passport and then carefully laid them back on the desk.
"Please to stamp all!" the old lady again demanded.
The immigration officer leaned back and scratched his head. "I will stamp only one. You choose which one."
"No, please to stamp all!"
"No, I will stamp...uh, this one." He chose one at random, bam, and handed over the lot. "Next, please." He motioned me to the desk.
The Portuguese immigration officer had a bit of a slow perusal through each passport and then carefully laid them back on the desk.
"Please to stamp all!" the old lady again demanded.
The immigration officer leaned back and scratched his head. "I will stamp only one. You choose which one."
"No, please to stamp all!"
"No, I will stamp...uh, this one." He chose one at random, bam, and handed over the lot. "Next, please." He motioned me to the desk.
Sep 4th 2007, 2:47 pm
#33
Homebody
Joined: Jan 2005
Location: HOME
Posts: 23,182
Re: Renunciation of US citizenship
You get a tax credit for of $82,000 and change, which basically offsets any income upto that point. However, under a recent change once you cross that threshold, you're taxed on the next dollar ($82,001) at the rate paid by a person making $82,001, not at the rate of a person making $1. So a guy making $100,000 will pay a very high rate on that last $20,000, as compared to the low rate a person just making $20,000.
That's what all the fuss was about last year. In some places with high expat packages (like Hong Kong) it meant a pretty signficant hit to some people (i.e. an extra $10k in taxes).
That's what all the fuss was about last year. In some places with high expat packages (like Hong Kong) it meant a pretty signficant hit to some people (i.e. an extra $10k in taxes).
Sep 4th 2007, 2:54 pm
#34
Thread Starter
Joined: May 2005
Posts: 5,763
Re: Renunciation of US citizenship
Years ago I took the boat from Kaohsiung, Taiwan to Macau. At immigration control an older Chinese woman cut in front of me (as is their right it appears) and plonked sixteen passports on the immigration officers desk and loudly proclaimed, "They all me, all me. Please to stamp all!" I was a bit intrigued and had a bit of a peer over her shoulder. Sure enough there were sixteen passports issued in her name with her photograph.
The Portuguese immigration officer had a bit of a slow perusal through each passport and then carefully laid them back on the desk.
"Please to stamp all!" the old lady again demanded.
The immigration officer leaned back and scratched his head. "I will stamp only one. You choose which one."
"No, please to stamp all!"
"No, I will stamp...uh, this one." He chose one at random, bam, and handed over the lot. "Next, please." He motioned me to the desk.
The Portuguese immigration officer had a bit of a slow perusal through each passport and then carefully laid them back on the desk.
"Please to stamp all!" the old lady again demanded.
The immigration officer leaned back and scratched his head. "I will stamp only one. You choose which one."
"No, please to stamp all!"
"No, I will stamp...uh, this one." He chose one at random, bam, and handed over the lot. "Next, please." He motioned me to the desk.
That is just surreal! How on earth do you get that many (real) passports?? Geez! 
You get a tax credit for of $82,000 and change, which basically offsets any income upto that point. However, under a recent change once you cross that threshold, you're taxed on the next dollar ($82,001) at the rate paid by a person making $82,001, not at the rate of a person making $1. So a guy making $100,000 will pay a very high rate on that last $20,000, as compared to the low rate a person just making $20,000.
That's what all the fuss was about last year. In some places with high expat packages (like Hong Kong) it meant a pretty signficant hit to some people (i.e. an extra $10k in taxes).
That's what all the fuss was about last year. In some places with high expat packages (like Hong Kong) it meant a pretty signficant hit to some people (i.e. an extra $10k in taxes).
Of course that's still exceedingly unfair on how the excess is taxed. 
Sep 4th 2007, 5:11 pm
#36
Powder Maggot
Joined: Nov 2004
Location: Nuevo Mexico
Posts: 4,452
Re: Renunciation of US citizenship
Sep 5th 2007, 12:55 am
#37
BE Forum Addict
Joined: Aug 2004
Location: Tampa, FL
Posts: 3,338
Re: Renunciation of US citizenship
You get a tax credit for of $82,000 and change, which basically offsets any income upto that point. However, under a recent change once you cross that threshold, you're taxed on the next dollar ($82,001) at the rate paid by a person making $82,001, not at the rate of a person making $1. So a guy making $100,000 will pay a very high rate on that last $20,000, as compared to the low rate a person just making $20,000.
That's what all the fuss was about last year. In some places with high expat packages (like Hong Kong) it meant a pretty signficant hit to some people (i.e. an extra $10k in taxes).
That's what all the fuss was about last year. In some places with high expat packages (like Hong Kong) it meant a pretty signficant hit to some people (i.e. an extra $10k in taxes).
Sep 5th 2007, 5:42 am
#38
BE Forum Addict
Joined: Nov 2005
Posts: 1,397
Re: Renunciation of US citizenship
As I've already said, the exemption is $82,400. And as I've already said, if you are in a country where you pay local tax, you can get a substantial credit on the rest which reduces it somewhat. The places where people get hit most on the excess are tax free places like the UAE.
Sep 6th 2007, 4:10 am
#39
And YOU'RE paying for it!
Joined: May 2007
Location: kipper tie?
Posts: 2,328
Sep 6th 2007, 1:40 pm
#40
BE Enthusiast
Joined: Oct 2004
Location: Baltimore, USA
Posts: 526
Re: Renunciation of US citizenship
I hold US/UK citizenship. I would never renounce my US citizenship. It does scare me a little that I have to file taxes when I move back to the UK. I am sure it's not that bad, but I don't want to upset the IRS!
