US STATE tax when retired and living in Europe.

[F4mandolin]

These are all questions that we need to figure out as well. My wife (UK) and I (US) are likely moving back to N England in the next 2-3 years. Questions abound.
1. Is it worth it for her to get her US citizenship this next year. Really only getting it in case they change the Social Security rules. The spousal SS coverage is very much worth it for us to keep. It won't be much, probably about 200 Pounds(equivalent) a month if she takes it at 62.
2. If she doesn't get citizenship, does that make our taxes a little easier?
3. What are the rules if I were to drop my US citizenship and getting Social Security? We would be in big trouble without that money.
4. Even if I did drop US citizenship.....what the heck do I do with my Govt TSP money? Easy enough I guess to move my Vanguard funds over to ETF's that are ok with the UK Govt.

Hey....the Seattle Mariners are in first place......better say that now before they play anymore games

[nun]

Quote:

Originally Posted by F4mandolin These are all questions that we need to figure out as well. My wife (UK) and I (US) are likely moving back to N England in the next 2-3 years. Questions abound. 1. Is it worth it for her to get her US citizenship this next year. Really only getting it in case they change the Social Security rules. The spousal SS coverage is very much worth it for us to keep. It won't be much, probably about 200 Pounds(equivalent) a month if she takes it at 62. 2. If she doesn't get citizenship, does that make our taxes a little easier? 3. What are the rules if I were to drop my US citizenship and getting Social Security? We would be in big trouble without that money. 4. Even if I did drop US citizenship.....what the heck do I do with my Govt TSP money? Easy enough I guess to move my Vanguard funds over to ETF's that are ok with the UK Govt. Hey....the Seattle Mariners are in first place......better say that now before they play anymore games

1) Getting US citizenship would remove any immigration issues if you wanted to move back to the US.
2)If she doesn't get US citizenship it might make her taxes easier, but not yours and not either of you file jointly.
3) Dropping citizenship does not affect eligibility for SS
4) Govt TSP money can stay where it it...it's a government pension under the treaty so sheltered from HMRC reporting funds rules.

[F4mandolin]

Quote:

Originally Posted by nun 1) Getting US citizenship would remove any immigration issues if you wanted to move back to the US. 2)If she doesn't get US citizenship it might make her taxes easier, but not yours and not either of you file jointly. 3) Dropping citizenship does not affect eligibility for SS 4) Govt TSP money can stay where it it...it's a government pension under the treaty so sheltered from HMRC reporting funds rules.

nun.....as usual...you are awesome. But....if moving to the UK (as planned)....this would be PERMANENT for me.....no coming back(ever) to the US. Could you elaborate on #2? How would her staying UK...or US kill my taxes? What....if....the Republicans get into power and decide that anybody who doesn't have US citizenship doesn't get SS money(and I understand that one). Citizenship would matter.....and I don't trust politicians to do anything for anybody.....unless it helps them.
The TSP money....is protected now...and probably/likely in the future...but..

[Free_at_49]

Quote:

Originally Posted by F4mandolin nun.....as usual...you are awesome. But....if moving to the UK (as planned)....this would be PERMANENT for me.....no coming back(ever) to the US. Could you elaborate on #2? How would her staying UK...or US kill my taxes? What....if....the Republicans get into power and decide that anybody who doesn't have US citizenship doesn't get SS money(and I understand that one). Citizenship would matter.....and I don't trust politicians to do anything for anybody.....unless it helps them. The TSP money....is protected now...and probably/likely in the future...but..

You've paid into SS so you're entitled to it, even non-citizens get it. I don't see how Congress can change the law retroactively.

If you're moving to UK permanently, I don't see any advantage in your spouse getting US citizenship. Even if you give up yours, you can still visit on an 90-day visa like anybody from EU.

[meierlde]

Quote:

Originally Posted by Free_at_49 You've paid into SS so you're entitled to it, even non-citizens get it. I don't see how Congress can change the law retroactively. If you're moving to UK permanently, I don't see any advantage in your spouse getting US citizenship. Even if you give up yours, you can still visit on an 90-day visa like anybody from EU.

Unless a law is passed that I would call the modern version of the man without a country law. If you renounce your us citizenship you are permanently barred from entering the US no matter what your other citizenship might be.

[HawkeyeNFO]

Quote:

Originally Posted by meierlde If you renounce your us citizenship you are permanently barred from entering the US no matter what your other citizenship might be.

Where does any law or USC say that? I'll believe it when I see it.

[kramer]

Quote:

Originally Posted by meierlde If you renounce your us citizenship you are permanently barred from entering the US no matter what your other citizenship might be.

This is categorically and absolutely FALSE.

[nun]

Quote:

Originally Posted by F4mandolin nun.....as usual...you are awesome. But....if moving to the UK (as planned)....this would be PERMANENT for me.....no coming back(ever) to the US. Could you elaborate on #2? How would her staying UK...or US kill my taxes? What....if....the Republicans get into power and decide that anybody who doesn't have US citizenship doesn't get SS money(and I understand that one). Citizenship would matter.....and I don't trust politicians to do anything for anybody.....unless it helps them. The TSP money....is protected now...and probably/likely in the future...but..

If your your wife is just a UK citizen living in the UK then she can invest locally without worrying about how the IRS would tax those investments. US citizens can get into a lit I trouble by investing outside the US. If your wife has US retirement accounts they would only be taxed when income is taken and under the treaty they would only be taxable in the UK. Anyone with dual US/UK citizenship living in the UK has to deal with both the IRS and HMRC as the UK Will tax them due to their UK residency and the US will tax them because of their citizenship.

[nun]

Quote:

Originally Posted by meierlde Unless a law is passed that I would call the modern version of the man without a country law. If you renounce your us citizenship you are permanently barred from entering the US no matter what your other citizenship might be.

This is completely false.

The US will only let you renounce US citizenship if you have citizenship of another country. Once the US citizenship is gone you will be able to enter the US on your foreign passport. So you'll have to comply with visa requirements and limits on the length of your stay.