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Citizenship & Taxes
Old 12-23-2007, 03:20 AM   #1
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Citizenship & Taxes

My wife and I were talking about whether to get our first born (due any day!) American citizenship, which she would have the right to, since I'm an American citizen. Just have to register the birth at the embassy.

Having a U.S. passport could be a perk for our baby later in life, especially if he/she one day wants to work or live in the States, but if our child grows up and never chooses to live or work in the U.S., as I understand it, he/she would still be liable as a U.S. citizen to file and/or pay U.S. taxes for the rest of his/her life.

Am I correct in that assumption that he/she would have to file U.S. taxes for a lifetime, even if he/she never sets foot in the U.S. in his/her entire life? Anyone else ever dealt with a similar situation?
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Old 12-23-2007, 05:40 AM   #2
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First congratulations. My friend married a Turkish woman, and went to great lengths having his wife come to the California, and give birth here in order to establish US citizenship. So if it is possible to do so by just registering at the embassy in Estonia I would do so. I am aware that US is preety unique on taxing its citizens no matter where they live. Never the less, I never heard of them going after somebody who has never really lived in the US. Absolutely worse case would be that your kid grows up to a be famous rock/soccer/investing guru and the US demands tax money. The kid renounces citizenship and has to apply to Visa to visit the US like everybody else.

(Ok I guess becoming rich and famous isn't the worse case but you get my idea )
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Old 12-23-2007, 06:59 AM   #3
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Originally Posted by Trek View Post

Am I correct in that assumption that he/she would have to file U.S. taxes for a lifetime, even if he/she never sets foot in the U.S. in his/her entire life? Anyone else ever dealt with a similar situation?
From what I know and what I've seen you are 100% correct. Furthermore you cannot get rid of that citizenship. I've read unbelievable stories about that, including the case of an American who had established himself in Japan and was persecuted by the administration because he wanted to give up his citizenship...
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Old 12-23-2007, 07:03 AM   #4
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First congratulations. My friend married a Turkish woman, and went to great lengths having his wife come to the California, and give birth here in order to establish US citizenship.
That shouldn't have been necessary. If one parent is a US citizen who has spent at least 5 years in the US, the kid is automatically eligible for citizenship as a natural-born citizen (i.e., could even run for president, after satisfying residency requirements).

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The kid renounces citizenship and has to apply to Visa to visit the US like everybody else.
Not quite; in general, renouncers are treated worse than people who were never citizens to begin with. But then again, most of the "outs" to avoid such prejudicial treatment involve having been being born a dual-citizen.

Yeah, being a US citizen is not particularly convenient if one does not actually live in the US or plan to, but on balance, I'd be inclined to register the kid, and let him/her decide for him/herself if they want to keep it later. That is what I in fact did in analogous circumstances.
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