Citizenship For UK Born Child

Hi all, I've tried looking but can't seem to find the answer, so will ask you wise people.

I'm British, husband is American. Here on a partner visa. We had our daughter last month. What I'm reading seems to say she is a US citizen and.we have to do the consular thing and get her a US passport. Now as much as we love the US, our plans are not to live there, and my husband was thinking of possibly getting British citizenship down the line. So my question is (and sorry if I'm being dumb) do we HAVE to register her as a US citizen - and therefore have her subject to us taxation etc? Can she not just be British? Anyone else have experience?

The issue is that she *is* American, whether or not you choose to get that passport or register her. So no, she can't just be British because the citizenship has already been passed on, even if you don't notify the Consulate.

This presents a number of logistical issues you need to be aware of. One is, of course, the double taxation; the other is the fact that Americans must, by law, enter and leave the US on a US passport. These are issues you will have until she is old enough to renounce her citizenship on her own, as that's not something you can do on her behalf.

Sucks, but that's the reality of dual nationality with the US.

She’s American automatically.  Whether you register her or not doesn’t change that.

 Would register her.  Each year when you husband files his taxes, he can claim the additional child tax credit which is $1400 (if he works). It rises frequently.  She would then have at least $20,000 in savings when she turns 28.  She can choose to renounce her US citizenship at 18 for no cost.  Sonothig to lose.

If you don’t register her, she won’t be able to travel to the US as US citizens need to enter on a US passport.  And she is a citizen.

@KFdancer I know this is a separate question for likely my own thread!

I've seen you mention about the tax credit and each time I wince because I realise I've likely been filing incorrectly all this time and could have been in line for the child tax credit for my two kids (I don't have a high income, etc.)

Is it the case I make sure I'm not using the Foreign Exclusion (is it FEIE?) and using Foreign Tax Credits? I'm not going to think of all of the money my kids could have had......

You are correct.  FTC instead of FEIE.

You can revise your past 3 years of returns. It’s worth it!

The issue is that she *is* American, whether or not you choose to get that passport or register her. So no, she can't just be British because the citizenship has already been passed on, even if you don't notify the Consulate.

This presents a number of logistical issues you need to be aware of. One is, of course, the double taxation; the other is the fact that Americans must, by law, enter and leave the US on a US passport. These are issues you will have until she is old enough to renounce her citizenship on her own, as that's not something you can do on her behalf.

Sucks, but that's the reality of dual nationality with the US.

Thank you. I expected that was the case, just wanted to double check.

She’s American automatically.  Whether you register her or not doesn’t change that.

 Would register her.  Each year when you husband files his taxes, he can claim the additional child tax credit which is $1400 (if he works). It rises frequently.  She would then have at least $20,000 in savings when she turns 28.  She can choose to renounce her US citizenship at 18 for no cost.  Sonothig to lose.

If you don’t register her, she won’t be able to travel to the US as US citizens need to enter on a US passport.  And she is a citizen.

Thank you for your advice. I'll keep in mind the info about taxes.

the fact that Americans must, by law, enter and leave the US on a US passport.

  Don't ignore this, they take this law very seriously. 

Thank you VERY much @KFdancer

Now off to Google revising tax returns. Much appreciated.

That should say age 18.  Not 28.  Would be nice though!

Thank you for your advice. I'll keep in mind the info about taxes.

Just to give you an idea, it takes one hour to do my taxes each year. I have no assets in the USA, so really not cumbersome.