Cozzer

I hope the mods will agree with me. although there are loads of threads about UK/US dual citizenship this thread is specific to the pros and cons of having the dual citizenship.

I have looked on this forum and other similar websites, although there are many posts on the subject i cant find one specific to the pros and cons, i have my reservations about the process and im sure there are others like me that could do with the advice of those with more experience.

So what are the Pro and Cons of being a UK citizen and applying for US citizenship? is there any? if so, does one out weight the other.

My personal situation is that in 6 months time i am eligible to apply, and at the moment i am unsure on what side of the Atlantic my future lies, either way now is the time for me to decide.

If we can keep the thread on topic , the mods might not yell at me for starting yet another one.

Thanks in advance for all your thoughts and feedback.

Cozzer

Rete

Why do you need a list of pros and cons? Just make the decision on whether you wish to become a USC or not. You are allowed to be a citizen of both the UK and the US.

Duncan Roberts

I guess you missed this.

http://britishexpats.com/wiki/Pros_a...US_Citizenship

helwardman

It's called discussion. People like it.

Cozzer

Thanks Duncan, i did indeed see that list. its one of the reasons why i wanted to hear different peoples real life experiences. For example, if i am to have dual citizenship and then decide to return to the UK am i liable to pay US tax as stated under the Disadvantages.

I guess im trying to find out if there has been a significant change in peoples life after, or has there been no noticeable differences apart from being able to vote. Does it make a difference where a person finally resides the UK or US.

Ultimately is it going to bite me in the ass at a later date.

PS. Thanks helwardman

meauxna

It has, for some people (not naturalizing). Becoming a citizen is the ultimate protection in terms of remaining in the US. People who have been PRs have found themselves outside the US permanently when the law changes (retroactive inadmissibility, unplanned extended stay outside the US etc).

On the less tangible side, my husband tells me it makes him feel like he belongs here. It's been all beneficial for him.
Individual mileage may vary.

avanutria

I am dual citizen, but I started with US and then gained UK. I lived for five years in London so I guess I am kind of qualified to answer this part of your question.

Really the only time that paying US taxes on UK work will impact you is if you become ridiculously wealthy. I would have had to earn $80,000 a year in the UK before I would have *started* to pay anything to the US in addition to UK taxes. At current exchange rates that would be a UK income of 50,000 pounds a year, about double what I was actually making as a professional in London. So all it really amounted to was making sure I filed my taxes with the US every year.

Cozzer

thanks meauxna, good point, thats one of the i the things im trying to avoid.

avanutria, great info on the tax situation, thats exactly the kind of info i was hoping for, on a side note, i wonder what would happen if someone never filled taxes in the US and stayed in the uK for a longtime, but that info is a big help thanks

avanutria

As a US citizen (or a legal resident within the US) you are required to file every year. People are scared of it, especially if they're not familiar with it, but I've been filing since I was 18 and it's really not a big deal. I don't know what happens if you don't file, but if you ever get audited or want to do something that requires tax returns (like sponsor someone to come to the US) you may find a lot of hassle in digging out the info needed for filing back tax returns.

Plus if you don't file and you DO owe money then you get charged fines.

Edited to add - the 2010 tax year (ie, next Feb-Apr filing time) will probably be the only time in my life when I have to consult a tax professional, because we have sold a house in the UK and bought one here (under the first time buyer rebate thing) and I want to make sure we do everything correctly.

Sally Redux

So if you do return to the UK and earn over the equivalent of $80,000, what happens? Do you have to pay US tax on top, and at what rate?

ian-mstm

I am a citizen of the UK, Canada, and the US. I currently live in the US. The various tax treaties between the countries is sufficient to avoid double taxation for most people. Don't confuse filing a US tax return with actually having to pay tax!

Since you ask, I have not noticed any major differences whatsoever living in one country or another. People are pretty much the same all over, and while the issues within a country are different, I think all countries have their good/bad points. As long as you are a citizen, it doesn't matter where you live. There is great reassurance in knowing that, even after a prolonged absence of many, many years... you can not be refused entry on return!


Not becoming a citizen of both countries could bite you in the ass later on, yes.

Ian

avanutria

No idea. The $80k figure comes from some tax waiver...foreign earned income exclusion or something like that. You report all your income and then the exclusion lets you knock off the first 80k. I guess whatever is left over would be taxed at the normal rate for that income, but I don't know.

There's some info here:

http://www.irs.gov/publications/p54/index.html

Edit - looks like that exclusion figure is up to $91,400 for 2009.

Sally Redux

Thanks - I've bookmarked that to look through at leisure.

Cozzer

Thanks, looks like its not much of an issue. thanks for the link

limeynus

I had heard, and am not able to confirm at the moment .. that death taxes (if that's the right terminology) are higher for a US PR than a US citizen... will try to find documentation to support this.

So obviously if you are planning to remain in US .. might be advantageous to have citizenship.