US citizens are tax slaves. No matter where you live in the world, you owe federal tax to the US government every year. You’re required to report all of your assets every year. All of your holdings every year.
In fact, US citizens who have foreign Bank accounts, are required to disclose those bank accounts, and the bank is also required to disclose it to the United states. You will find that there are many banks in the world that will not allow US citizens to open accounts because they simply don’t want the paperwork
But wait! There’s more! If you renounce your citizenship, for tax purposes, you still owe the next 10 years in taxes to the US Federal government. Even though you are no longer a citizen
That is always so funny to me. “Hi IRS. I stole $10k worth of goods in 2023, but before I could sell them in 2024 the police confiscated them. Do I count this as a loss for 2024 or…?”
Not sure what you’re getting at, but since you are legally required to pay taxes, and the 5th amendment protects you from self-incrimination, your tax statements are inadmissible in court.
The Revenue Service would much rather you pay your taxes, even if it was from an illegal activity, rather than just avoid paying them at all, to avoid the risk of prosecution.
You owe federal tax on global income, but you can get a tax credit for local taxes paid on that income; So you pay max(US Federal, Foreign Local), but not the sum.
No. Absolutely not.
US citizens are tax slaves. No matter where you live in the world, you owe federal tax to the US government every year. You’re required to report all of your assets every year. All of your holdings every year.
In fact, US citizens who have foreign Bank accounts, are required to disclose those bank accounts, and the bank is also required to disclose it to the United states. You will find that there are many banks in the world that will not allow US citizens to open accounts because they simply don’t want the paperwork
But wait! There’s more! If you renounce your citizenship, for tax purposes, you still owe the next 10 years in taxes to the US Federal government. Even though you are no longer a citizen
Good fucking luck on the ten year thing.
I’m personally familiar with the reporting and taxation of foreign banks and even foreign earned income.
Dunno why it didn’t occur to me that it would apply to investment/brokerage account’s as well 🤦♂️
Fun fact: you also need to report any money you got illegally on like 8z of your 1040. The government wants a cut of your crime money.
That is always so funny to me. “Hi IRS. I stole $10k worth of goods in 2023, but before I could sell them in 2024 the police confiscated them. Do I count this as a loss for 2024 or…?”
So…yes kind of.
https://en.wikipedia.org/wiki/Taxation_of_illegal_income_in_the_United_States
Not really. It’s a tool to prosecute people who make their living by breaking the law.
… wait …
AHAHAHAHHAHAHHAHAAHAHHHHA
Not sure what you’re getting at, but since you are legally required to pay taxes, and the 5th amendment protects you from self-incrimination, your tax statements are inadmissible in court.
The Revenue Service would much rather you pay your taxes, even if it was from an illegal activity, rather than just avoid paying them at all, to avoid the risk of prosecution.
I was laughing at my own statement:
At least being an US citizen is amazing and everyone respects you and wants to be you, right?! … Right?!!
I mean, better than being stateless and stuck in an airport and no country lets you in… I guess?
I from Krakozhia, I go New York City, now.
Why do you sound angry at Americans? You’ve never met most of them.
Angry? Not at all, most people are not bilionaires.
This is why I ask
I got it because you commented on it. But you gotta look as an outsider. You guys voted for this insanity TWICE.
I did? Are you sure?
lol omfg are you high? 🤣
I think I see the problem.
Finland, New Zealand, Spain, Japan, Singapore, all seem like strong options.
The best part of being a US citizen is being able to work in the US, everything else is kind of a downer.
Wow! Crazy.
Combine that with the observation that so many of them are trying to avoid taxes LOL
What about income earned in other countries? While living there? Lol
The US taxes it. There is a foreign earned income exclusion for the first $x though.
You owe federal tax on global income, but you can get a tax credit for local taxes paid on that income; So you pay max(US Federal, Foreign Local), but not the sum.
Unless it’s under what amount? :)