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How do the rules of U.S. “citizenship-based taxation” affect people who are not U.S. citizens, but have chosen to marry a U.S. citizen?

U.S. Citizenship Based Taxation Married To U.S. Citizen U.S. Tax Rules
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Dan Gordon
The US tax rules do not apply to non-citizens! However if your spouse chooses to add you to the family tax return you MUST first have a ID number (ITIN) without an ITIN number you cannot be included on the return and are thereby not required to enter any of your income information on the return. However if you obtain an ITIN by filing a form W-7, with the required documents, you can then be included on the return and therby all of your income MUST also be included on the return. If there are dependents in the family and you are not on the return your spouse can file a Head of Household for a little higher exemption.
Leave a Comment 195 weeks ago

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John Richardson
The marriage of Meghan Markle to Prince Harry has generated an awareness of the regulatory requirements on U.S. citizens who live outside the United States. This is only part of the problem. To focus on how U.S. citizenship-based taxation affects ONLY U.S. citizens is selfish and misguided. After all, by marrying Prince Harry, Meghan Markle is now part of a family which includes non-resident aliens.
How do the rules of U.S. “citizenship-based taxation” affect people who are not U.S. citizens, but have chosen to interact with U.S. citizens?
Forget Meghan and the baby. Time to ask: How might being the father of a U.S. citizen and the husband of a U.S. citizen create a link between Harry and the IRS? “American expats hoping global spotlight on royal baby’s U.S. tax affairs will drive change.
My thinking along these lines began with:
What about Internal Revenue Code Section 318? This would deem “Baby Sussex” to be (for IRS purposes) the owner of any the shares of any U.K. corporations that Harry might own. This is only one of many instances where (to put it simply) the U.S. citizenship of one family member can become a problem for the whole family.
Read this article: www.taxconnections.com/taxblog/a-u-s-citizen-in-the-royal-family-meghan-and-archies-tax-life-is-complicated/
Leave a Comment 194 weeks ago

User Photo
John Richardson
The marriage of Meghan Markle to Prince Harry has generated an awareness of the regulatory requirements on U.S. citizens who live outside the United States. This is only part of the problem. To focus on how U.S. citizenship-based taxation affects ONLY U.S. citizens is selfish and misguided. After all, by marrying Prince Harry, Meghan Markle is now part of a family which includes non-resident aliens.
How do the rules of U.S. “citizenship-based taxation” affect people who are not U.S. citizens, but have chosen to interact with U.S. citizens?
Forget Meghan and the baby. Time to ask: How might being the father of a U.S. citizen and the husband of a U.S. citizen create a link between Harry and the IRS? “American expats hoping global spotlight on royal baby’s U.S. tax affairs will drive change.
My thinking along these lines began with:
What about Internal Revenue Code Section 318? This would deem “Baby Sussex” to be (for IRS purposes) the owner of any the shares of any U.K. corporations that Harry might own. This is only one of many instances where (to put it simply) the U.S. citizenship of one family member can become a problem for the whole family.
Read this article: www.taxconnections.com/taxblog/a-u-s-citizen-in-the-royal-family-meghan-and-archies-tax-life-is-complicated/
Leave a Comment 194 weeks ago

 

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