Us Irs Reporting For Dual Citizen - No Income In Us

[craigt3365]

Can't see the fuss...

one of the responsibilities of being a US citizen is that all of your worldwide income is taxable - even when you are living overseas.

More enlighted countries don't tax their citizens when the are non-resident, but then I guess there are pro's and con's of every citizenship.

It sucks for sure. I live off interest and dividends....non earned income. I don't live in the US, but it is fully taxable...sucks...

because you have not thought of the legal solution establishing an investment company, manage the company, draw an appropriate salary as well as perks and enjoy the "foreign income exclusion" of 91,500 tax free Dollars.

it is of course not as easy as it sounds. but a few (three) of my american friends got together some years ago and after a tedious setup which took quite some time they live now happily ever after abroad and pay income tax only for the amount exceeding the exclusion.

I just moved here this year. So this is my first full year of living abroad. The rule is you have to be out of the country for 11 months. I am usually back in the US for at least 3 months a year caring for my Mom. So I'm not sure it will work for me. I just can't be away that long right now.

But...I have an accountant looking into it. Even so, it's the unearned part that is tough. I've researched this a fair amount...if you don't provide a significant amount of personal work in the endeavor, it still qualifies as unearned income and subject to normal taxes...even if you are never in the US...

I did research setting up an offshore corporation to put all the investments in, but it is really complicated...and if caught...illegal...as it was done for tax avoidance.

I'll let you know what this accountant says when he gets back to me next week!

[Naam]

I'll let you know what this accountant says when he gets back to me next week!

no need to tell me, i know his answer.

[Naam]

if you don't provide a significant amount of personal work in the endeavor, it still qualifies as unearned income and subject to normal taxes...even if you are never in the US...

i can assure you that it takes a significant amount of personal work to handle a significant amount of capital which is supposed to render a significant yield.

[Lost in LOS]

america will get its money, a real bummer being an American and not living there with them on my heels for everything. I paid my taxes, did my military, they took 15% of my earning for social security and still they want to tell me what to do with my money when I live here.