Renounce US Citizenship?

Do you (US citizens, UK residents) really file US taxes? I haven't in years since I don't owe anything....

I'm not sure if they charge you for it.  I think when I was looking through things about getting UK citizenship, I saw a thing that said they charged citizens 80 quid to renounce their citizenship. 

They what?!!!        

So not content with all the tax they've already extracted,  if somebody finally decides he's had enough of the country and wants absolutely nothing more to do with it ever again, they then expect him to pay more money to be officially de-associated with it?     

As I said, I would think long and hard before doing anything as drastic as renouncing citizenship, but if I genuinely felt that I never wanted anything to do with the U.K. again, they'd just get my passport and other official documents back with a letter telling them so and that would be it.   If I was never intending to return, why would I worry about whether they declassified me as a citizen anyway?

P.S.  I just found the relevant information on the Home Office website.  The fee currently stands at £120.   

http://www.ind.homeoffice.gov.uk/ind/en/home/applying/british_nationality/application_forms/fee_notes.html

Do you (US citizens, UK residents) really file US taxes? I haven't in years since I don't owe anything....

sfgirl, I wondered about that too earlier this year. And after calling the IRS office (twice), once while here in the UK and once while back in the US, I was told  both times that I did not have to file anything if I wasn't making any money.

Do you (US citizens, UK residents) really file US taxes? I haven't in years since I don't owe anything....

I dont, but im sure the IRS will be catching up with me soon and forcing me to do it, as i've just renewed my US passport and they asked for my social security number (and i believe the application said there was a FINE if you leave that field blank!).   Im sure to be hearing from them in the near future. 

Not me, obviously, but someone I know recently renewed their US passport and never heard from the IRS.   

So not content with all the tax they've already extracted,  if somebody finally decides he's had enough of the country and wants absolutely nothing more to do with it ever again, they then expect him to pay more money to be officially de-associated with it?     

My guess was that it was for paperwork or something?  I can't find anything on the US having a similar fee, though.  Only think I found was this set of stuff:  Renunciation/Loss of U.S. Citizenship, which doesn't list any fees.

I checked into denouncing my US citizenship, thinking it would make it easier for me to be a UK citizen - with all the laws (for one, you have to do it in another country at a US embassy, can't do it in the US, as I was told) I decided it was not worth it - doesn't make anything easier, makes it more difficult if you EVER want to go back to the US.  I know you say you will never do that, but....Never is a VERY long time, and who can tell what might happen in the future? I don't personally owe anything to the IRS, but I would think if someone did, it would be flagged.

I would just say this, friends: Every time I have travelled in to the US over the past few years, at immigration they have always asked me "how long are you here for this time"? When I tell them, they always enter it on the computer.

The only reason I can think of why this is relevant to them is that they are relaying this information to the IRS. Reason: As an American citizen, I am liable for taxes for any "work days" I spend in the US. Usually I spend about 2 to 3 weeks of each year in the US on business, and end up having to pay thousands of US$ in taxes for those few weeks (because the exclusion doesn't apply for days spent in the US!).

Kind of makes me think they do keep tabs of these things...

Do you (US citizens, UK residents) really file US taxes? I haven't in years since I don't owe anything....

I called the IRS and if you ever intend to move to the US at anytime and you want to take your spouse or partner with you have to show 3 yrs of income tax returns. to helo with the filing of the papers......

and yes as a US citizen you are "suppose" to file...which is what the nice (cough) IRS man told me

You could always keep hoping that the Supreme Court will declare income tax unconstitutional again!   

History of U.S. Income Tax

You could always keep hoping that the Supreme Court will declare income tax unconstitutional again!

If only they would declare it unconstitutional!!

In 2002, I decided I should file my US taxes for 2000 and 2001 since I hadn't bothered before. I knew I surely wouldn't have made very much anyway so that's why I hadn't filed. It turned out I was owed a bit for 2000, so I was pretty chuffed on that front. I've been good about filing for 2002 and 2003 (I do it on a Jan-Dec basis. Much easier for me); however, I haven't bothered this year. I don't see the point really. Why should I file when I don't even live there AND when I know I don't owe anything? I might do it in the next few months. I love the UK system since I don't have to worry about it at all -- unless you are self-employed, etc, but then I'd have an accountant do it!

On a different note: I know you're allowed up to $80000 of Foreign Earned Income, but does anyone know what happens if you earn MORE than that? Not that hubby and I will any time soon! We currently earn -- jointly -- approx $62,377.

As for renouncing US citizenship, I wouldn't do it all. I find it quite a chore to file my US taxes and even though I don't visit often, I always like having the option of moving back there without much hassle. Of course, all my family are there so I have ties, but I personally wouldn't do it. I have a US passport, which allows me easy entry back into the US, as well as a British passport, which allows me easy entry within Europe.

regarding filing taxes,do you have to claim your uk spouses income on your US tax form?

I didn't we filed married but filing single...why should you file jointly he is a UK citizen.....

Hi MeShell, I've replied on the other board, but thanks for clarifying. Makes sense to not claim your spouse's income since he/she isn't a US citizen. I must've been advised incorrectly!

I think income over the $80,000 earned income exclusion is theoretically taxable, but you get to take a credit for taxes paid in the UK on the same income. In theory, if it is all earned income and you paid taxes on it somewhere else (and you haven't been spending time in the US), I think the way the position was explained to me is that it will offset any theoretical tax I might owe to the US.

I always spend too much time each year in the US on business trips or courses or something and end up having to write the IRS a check for several thousand.

But I don't think I'll renounce citizenship just yet.


M.