Saria

But considering she hasn't lived here for so long, what benefits/privileges is she enjoying?

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spiderlashes5000

That's my question: what exactly are the privileges US citizens enjoy when they don't live here?

Like if you are unfairly imprisoned in some other country, the military will come get you?

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Josephine

Yea this is what it boils down to. I would say no if you're never going to move back.

Josephine

LOL sure. She has the option to come back to live here anytime. That's huge.

mad scientist

I file tax returns in both countries. Because there is a tax treaty between the US and Canada, I am not subject to double taxation so I get a credit for the tax I pay to Canada. Since Canada has a higher tax rate than the US by and large, I don't end up owing the US much if any tax.

There are exceptions though that are significant. In Canada we have a tax free savings account which is something similar to a Roth IRA. This is not recognized in the US. Therefore any interest I make on such an account would be taxable in the US, even though its not in Canada. As a result, I am unable to open such an account in Canada because it serves me no purpose. Similarly we have a Registered Education Savings Plan (there is something similar in the US but I don't know the name). We had to put my kids plan in my husband's name only because if my name were on it, it would be taxed in the US. There are other things, including house sales that are taxed differently in different countries. The kicker for me is that the US has a death tax. I am primarily a SAHM so when I die the bulk of my estate will be from my Canadian husband's earnings. Before that estate passes to our Canadian children it would be subject to US taxation. Keep in mind that none of this money has any link to the US.

The person who benefits the most from this is my cross-border accountant because its impossible for me (or any ex-pat) to navigate this system. Even though the tax I end up paying to the US is negligible, my accounting fees are significant.

In any case, all I'm saying is that the decision to renounce or not renounce ends up being a practical one rather than a patriotic one. I know many Americans who are very sad to give up their US citizenship, but in order to protect the finances of their Canadian families they have no choice but to do so.

I haven't renounced my citizenship yet but its definitely something that is always on my mind.

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NorahBugg

You used to live in the U.S., but, now live permanently in Canada? I don't understand why you would hold onto your U.S. citizenship. I don't see an advantage unless you're doing it because you'll lose SS money you made in the U.S.? It can't be THAT hard or lengthy to change over your citizenship, and I don't think it would be worth the hassle to hold onto any monetary benefit you'd get from your U.S. citizenship if you're spending all or most of your time in Canada.

I don't get renouncing. From what I've read, you may not get clearance to come back to your original country unless you apply for a visa, so I don't get what the purpose of it is. I'm guessing people get around that rule, though, which is why it seems unfair. People, IMO, should pick b/w one country or the other, or have dual citizenship and pay everything that goes along with that. They shouldn't get special privileges just because they can pay for them.

mad scientist

I moved to Canada as a child. I didn't actually know I was still a US citizen until I was an adult. My parents assumed that I had automatically given up US citizenship when I took Canadian citizenship (when I was 5 years old).

But the reason I am hesitant to renounce is that I don't know how the US will treat me if I do. I want to be treated like any other Canadian: I travel to the US for work, I vacation there and visit with my family. Like I said before I live 10 miles from the US border. If I could be certain that the US will treat me like the rest of my Canadian family, I'd renounce in a heartbeat. But I am afraid that the US treats people who renounce as if they are de facto tax evaders and will somehow prevent me from travelling there. I'm not comfortable taking that risk right now but I continue to weigh my options.

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Eilonwy

The US has an agreement with certain countries (including Norway, I think) that someone with dual citizenship only needs to pay income tax to one of the two countries.

mad scientist

I don't think there's anything special about Norway (at least not according to what I read on the US embassy in Oslo website). The US has tax treaties with lots of countries so that you are never subject to double taxation on the same income.

But you still have to file a US tax return. And like I said above the US may opt to tax income sources that are not taxable in your home country.

Its just such a waste of time and money and effort considering the US is never going to see any tax money from the majority of expats because we live in countries with higher taxes anyways.

The entire bureaucracy has been set up in the hopes to catch a few people with off-shore accounts in the Caymans. But those people are always a step ahead of the game.

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sleepymeko

I have lived abroad and while I did enjoy my time over there and thought those countries were wonderful, there is no place like home. I'm an American at the end of the day and I would never renounce my citizenship. Especially since so many people try so hard to get into this country.

When I lived abroad, I was an American. People only saw me as an American. My mannerisms are American. I eat like an American. I walk around with a dumb smile on my face like an American. Living abroad made me realize how patriotic I really was. I would sometimes crave the company of someone else who came from the same country as me. I know what it feels like to long for my own country and people. While, I did like living abroad, I could never leave this country completely.

And in comparison to a lot of other countries, US citizens do not pay a lot in taxes in the first place.

I would feel like I'm turning my back on who I am as a person.

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