What advice to take before renouncing US citizenship?

Hi

Thanks to the advice here earlier this year, I have just received my streamline tax return and 2021 return from the US tax accountant I commissioned. About to submit the backdated FBARS.

I'd really like to renounce at some point. I'm 41 now, and so building my employer pension pot. I also joint own a house, not planning to move. It feels like something worth doing before investments grow. But should I take any kind of advice on my situation first? Are there people who can help ordinary people through this process without a huge expense?

Thank you

Not really advice, but it's a big step to take (not done it myself and I don't know anyone who has taken this step)- juts make sure you consider all potential eventualities.

I did consider renouncing when I returned to the UK after 9+ years in the US (including US citizenship through naturalisation & 3 US born children) and decided against it - didn't file tax returns until more recently when I went the streamlined route. What wasn't a consideration for me was that I left when I was 41 years old  and I didn't give a thought to any Social Security entitlement. roll on 20+ years and I secured the 4 credits I was missing  (working in the US for a few weeks - which I couldn't have done without citizenship)and now I get Social Security every month of just over $1,000 and my wife gets $500 based on my record - so actually worth more than my UK OAP. Add to that the generous stimulus payments over the last couple of years - for the entire family - certainly not to be sniffed at.

So like I say, roll the clock forward and make sure you're not giving something up that you may subsequently regret.

I've never worked in the US and don't intend to. So not relying on social security - would never have considered any financial benefit from US to be honest. It's just a minor detail of my life that my Dad is american and I have acquired US citizenship. Having been born and lived vast majority of my life in the UK, it would just be nice not to have the added complication.

The stimulus checks will be nice, however, whenever they arrive but are paying for me to get compliant really.

I've never worked in the US and don't intend to. So not relying on social security - would never have considered any financial benefit from US to be honest. It's just a minor detail of my life that my Dad is american and I have acquired US citizenship. Having been born and lived vast majority of my life in the UK, it would just be nice not to have the added complication.

You sound like a good candidate to be renouncing citizenship with no financial ties, and no plans to move there.

You’re unable to renounce at this time and there is no indication when the embassy will accept applications in the future.

Hi, I renounced in 2018 and did not have or need any special help with it. Like you I did the streamlined programme and used an accountant for that, but as for the renunciation paperwork and appointment I did it all myself. I was 40 at the time. There really isn't much choice as you get older, because if you are an average-income person and want to save for your retirement you cannot reasonably do that in the UK while still holding US citizenship.

There are a couple of Facebook groups that may be helpful to you: 'American Expatriates' and 'Renounce US Citizenship - Why and How'. You'll get lots of support from people who have been through it. Best of luck

Hi, I renounced in 2018 and did not have or need any special help with it. Like you I did the streamlined programme and used an accountant for that, but as for the renunciation paperwork and appointment I did it all myself. I was 40 at the time. There really isn't much choice as you get older, because if you are an average-income person and want to save for your retirement you cannot reasonably do that in the UK while still holding US citizenship.

There are a couple of Facebook groups that may be helpful to you: 'American Expatriates' and 'Renounce US Citizenship - Why and How'. You'll get lots of support from people who have been through it. Best of luck

Did you have someone do your final tax return or did you do that yourself as well?

You’re unable to renounce at this time and there is no indication when the embassy will accept applications in the future.

The renunciation service at the Embassy re-opened last week. You can finally book an appointment by following the steps on the Embassy website.

https://uk.usembassy.gov/u-s-citizen-services/citizenship/loss-of-u-s-citizenship-i-e-expatriation/

I wonder how long the wait times will be. Lots of pent up demand since the start of covid I’d think.

Did you have someone do your final tax return or did you do that yourself as well?

Yes, the accountant did my final tax return too.

Hi

Thanks to the advice here earlier this year, I have just received my streamline tax return and 2021 return from the US tax accountant I commissioned. About to submit the backdated FBARS.

I'd really like to renounce at some point. I'm 41 now, and so building my employer pension pot. I also joint own a house, not planning to move. It feels like something worth doing before investments grow. But should I take any kind of advice on my situation first? Are there people who can help ordinary people through this process without a huge expense?

Thank you

Do you have children who have dual citizenship?

Do you have parents still in the USA?

Do you have siblings still in the USA?

Essentially, do you have anyone back there, that at *some point*, you may find yourself back for temporarily caring for someone.  If the answer is no (and I suspect it is), crack on!

Though I too enjoyed all the stimulus money.  Especially as I have children.  I get my big fat juicy child tax credits each year with my taxes and then all the stimulus money - it was great! 

Re: Embassy being closed until recently - I don't know if that's them opening back up willingly or from a lawsuit that was going on to open back up. (I recall reading about such a lawsuit in the news, as well as one challenging the constitutionality of the $2,350 fee).

Hi, I renounced in 2018 and did not have or need any special help with it. Like you I did the streamlined programme and used an accountant for that, but as for the renunciation paperwork and appointment I did it all myself. I was 40 at the time. There really isn't much choice as you get older, because if you are an average-income person and want to save for your retirement you cannot reasonably do that in the UK while still holding US citizenship.

There are a couple of Facebook groups that may be helpful to you: 'American Expatriates' and 'Renounce US Citizenship - Why and How'. You'll get lots of support from people who have been through it. Best of luck

Hello, Can i ask about where you have said as an average income person and it being hard to save towards your retirement in the uk while holding usa citizenship. what's the deal there? Why is it hard to save?

Hello, Can i ask about where you have said as an average income person and it being hard to save towards your retirement in the uk while holding usa citizenship. what's the deal there? Why is it hard to save?

US citizens living abroad have very limited investment opportunities due to the rules relating to PFICs. It is extremely difficult to invest in foreign mutual funds/ETFs, such as the S&P 500, without significant US reporting/tax obligations. A lot of UK banks/brokers won't even allow US citizens to open accounts.

This is just one example, but to me is generally one of the biggest obstacles to US citizens living abroad who are looking to invest/save for the long term. 

Thank you for your helpful reply. I haven't come across this to be honest. I'm a mistake USA citizen, born there to non usa citizens. I have become compliant with my taxes over the last number of years, I got all my stimulus payments after getting compliant (totally unexpected and wasnt a factor in me getting compliant).

My Tax accountant (USA based - with many uk clients) hasn't picked up on this and when asked he said I'm allowed to have the equivalent to what he called a 401k (pension plan i understand) in the UK. Ive not reported on this and unsure how to. I also have a bank account and just recently met them about getting a mortgage and I made sure to let them know i was a US citizen and they said that they already knew and that wasnt an issue.