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  • FIRST POST
    • mrswoo57
    • By mrswoo57 9th Sep 19, 4:54 PM
    • 5Posts
    • 22Thanks
    mrswoo57
    Liable for USA tax
    • #1
    • 9th Sep 19, 4:54 PM
    Liable for USA tax 9th Sep 19 at 4:54 PM
    I have found out that because I was born in the USA I have to file tax returns there and may have to pay taxes on my UK income even if that is zero rated here. I am amazed that I can't find anything about this issue on the main site although it has been in the news recently (Boris Johnson had to pay US taxes on the sale of a property as he also is an "accidental American").
    It is beyond complicated.
    Any shared experience out there?
Page 1
    • masonic
    • By masonic 9th Sep 19, 5:25 PM
    • 12,337 Posts
    • 9,941 Thanks
    masonic
    • #2
    • 9th Sep 19, 5:25 PM
    • #2
    • 9th Sep 19, 5:25 PM
    The information you've found out is correct, ISAs are not recognised as tax free savings vehicles in the USA, unlike pensions.
    • SonOf
    • By SonOf 9th Sep 19, 5:27 PM
    • 1,454 Posts
    • 1,723 Thanks
    SonOf
    • #3
    • 9th Sep 19, 5:27 PM
    • #3
    • 9th Sep 19, 5:27 PM
    I am amazed that I can't find anything about this issue on the main site
    This site publishes articles that cover the mainstream. Back when Martin used to own it, he said that he could only cover the major areas and could not delve into the smaller quirks or issues in his guides. I would estimate that most articles on this site are accurate to around ~75%

    It is estimated just 173,470 US born residents are in the UK (2011 Census). Many of which are at US military bases. So, it makes up under 1% of the population. So, its no wonder its not in the MSE article. MSE is not the place to get accurate financial/tax information.

    For as long as you remain a US citizen, you will be subject to a US tax return and the potential of US taxes.
    • cheerfulcat
    • By cheerfulcat 10th Sep 19, 9:51 AM
    • 3,180 Posts
    • 1,355 Thanks
    cheerfulcat
    • #4
    • 10th Sep 19, 9:51 AM
    • #4
    • 10th Sep 19, 9:51 AM
    I have found out that because I was born in the USA I have to file tax returns there and may have to pay taxes on my UK income even if that is zero rated here. I am amazed that I can't find anything about this issue on the main site although it has been in the news recently (Boris Johnson had to pay US taxes on the sale of a property as he also is an "accidental American").
    It is beyond complicated.
    Any shared experience out there?
    Originally posted by mrswoo57
    You will need to file tax returns but it’s unlikely that you will owe any tax - the first $100k or so of foreign earned income is disregarded, if I recall correctly. You will also need to file a FBAR http://https://www.irs.gov/businesses/small-businesses-self-employed/report-of-foreign-bank-and-financial-accounts-fbar if you had the equivalent of $10,000 in “ foreign financial accounts “. There are accountants who deal with US citizens abroad. They aren’t cheap.

    You can renounce your citizenship but need to be up to date with your taxes for that...
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