Wealthy people are renouncing American citizenship

[morganist]

You pay taxes on income from all countries you have lived in the past year. So, if you lived in the UK, Spain, Mexico all in the same year, you get taxed on income from those countries including, the US. However, there is an amount excluded, from taxation. You are allowed living expenses in the foreign country. If you do not exceed the limit, you do not get taxed on your foreign income. And you have to file your taxes on the same dates as other Americans, usually around April 15 of the following year. IRS sets the deadline to file the taxes so, it could be past April 15 in effect.

Thank you for the response. I can't figure out whether it is not worth other nations having Americans working in their country due to the loss of taxation they may encounter or whether it is unfair taxation on the Americans working in foreign countries depending whether they have to pay tax there or not. Is there an answer?

 

[VicBee]

Thank you for the response. I can't figure out whether it is not worth other nations having Americans working in their country due to the loss of taxation they may encounter or whether it is unfair taxation on the Americans working in foreign countries depending whether they have to pay tax there or not. Is there an answer?

Americans working abroad pay taxes in the country they work in, like any citizen. They also must file their US taxes and get to deduct the taxes they paid in the host country. That's a general statement, because it depends what agreement the US and the host country have. Singapore, for example, does not have a treaty with the US, which doesn't mean the IRS isn't told what a US citizen is doing in Singapore... it's just... more discreet.

 

[smallfil]

Thank you for the response. I can't figure out whether it is not worth other nations having Americans working in their country due to the loss of taxation they may encounter or whether it is unfair taxation on the Americans working in foreign countries depending whether they have to pay tax there or not. Is there an answer?

There are reciprocal tax treaties with most countries allowing citizens of other countries to be taxed on their incomes working and living in the US. US tax laws are what they are. Only way for Americans to not be taxed while, working abroad is to renounce their US citizenship and surrender their passports. And if you are a filthy rich billionaire, the US is the country to live in. Lots of tax loopholes to make sure you pay very little in taxes, relative your income. That is why most of the billionaires in the world, live in the US.

 

[newwurldmn]

Thank you for the response. I can't figure out whether it is not worth other nations having Americans working in their country due to the loss of taxation they may encounter or whether it is unfair taxation on the Americans working in foreign countries depending whether they have to pay tax there or not. Is there an answer?

americans pay tax in the local jurisdiction first and can take that tax paid as a tax credit against their US taxes.

so it doesn’t affect host nations.

 

[morganist]

americans pay tax in the local jurisdiction first and can take that tax paid as a tax credit against their US taxes.

so it doesn’t affect host nations.

Can Americas get out of paying the taxes in the foreign country they live in through using tax loopholes and then use other tax loopholes to get out of paying American taxes too?

 

[newwurldmn]

Can Americas get out of paying the taxes in the foreign country they live in through using tax loopholes and then use other tax loopholes to get out of paying American taxes too?

that would be two separate set of loopholes and very specific to the individual situation.

my experience with US tax code is you don’t ever get out of paying them. You can really only convert them from income to capital gains or you can defer them (hopefully until you die).

 

[VicBee]

Can Americas get out of paying the taxes in the foreign country they live in through using tax loopholes and then use other tax loopholes to get out of paying American taxes too?

If you work and pay taxes in a host country you don't get to take deductions because you're American. You get to take the deductions on your US taxes.
For example, if you buy a property abroad, you get the same deductions as if you purchased it in the US.

 

[Windlesham1]

Taxation is one reason to flee the US. Getting away from Nazi-like tyrannical government in the offing is another reason.

That bus left the terminus -asshole bitch bone spur bunker baby is toast. Patriots pay taxes -the US is better off without those tax dodging ass wipes

 

[Windlesham1]

As a UK trader I'd pay tax on American dealings, I have to sign a W8 to tell them I am not trading US stuff- though it's none of their f***ing business, I just use an American broker

 

[morganist]

As a UK trader I'd pay tax on American dealings, I have to sign a W8 to tell them I am not trading US stuff- though it's none of their f***ing business, I just use an American broker

I have the same situation with book sales in America, I would have to fill in a form to get out of paying tax on books sold there. I opted to pay the tax instead, it is not much and I want to contribute to the American economy. It was a reasonable amount of paper work and it gets updated regularly too. This is another aspect of publication that people need to be aware of, international taxation law and compliance.