Citizenship

[Dave H 12]

I have been in America almost a year, I know I cannot take the Citizenship Test for some time yet, but do I really need to become a citizen?

I am 46 years old, a decent job that will take me through to retirement at the age of 55 as I will be taking my company pension from U.K.

I just want to know, if anyone has been here a long time and decided against the Citizenship, what benefits are there.

Thanks for any input you may have.

Dave

[Oksana & Max 94]

There are certain benefits to US citizens, while LPR's are not elligible. No one makes you to obtain a US citizenship if you don't want. However you have to consider few things. Renewing your GC every 10 years and pay the hefty fee to the USCIS, and make sure you do not abandon your status by living outside of the US for more then 12 month. Other then that you can remail an LPR forever.

[Mrs. NSA 6]

Hey dave I am a USC. I guess I want to know why wouldnt you. You have been through all the other processes, wouldnt that be a reward in its own to have completed the whole process?

[Krikit 1,163]

I've decided against the citizenship.... for now. The benefit of not taking out citizenship is that you don't ever have to file U.S. taxes if you decide to return to your home country. Other than that, there are more positives to becoming a citizen than negatives. It's all in your comfort level, really.

You have been through all the other processes, wouldnt that be a reward in its own to have completed the whole process?

I don't consider it a "reward".

[extrarius 1]

It's not really necessary no, some don't because they either don't see the benefit of it or they don't wish to lose citizenship to another country (since some will make you forfeit). We decided against it for my wife because of her Italian Citizenship (she's dual Argentine/Italian) which we don't want to lose for various travel reasons.

Edited March 13, 2012 by extrarius

[minicyni 1]

I probably will go for it... eventually. lol No rush.

[Dave H 12]

I probably will go for it... eventually. lol No rush.

I think I may do it but not for a while. My UK passport still has 7 years, I will get a 10 year GC so really no rush. I just need to know more, mainly about benefits and my pension as I still have a UK bank account and don't know if this will be taxable even though the U.S won't know about it.

[pandawars 7]

i think there is a level of safety to know that you can never get deported for some stupid reason down the road and also i think there is something to be said for the ability to vote and have your political voice heard. you pay taxes into the system yet you have no real voice in the political system as a non-citizen.

[Dave H 12]

i think there is a level of safety to know that you can never get deported for some stupid reason down the road and also i think there is something to be said for the ability to vote and have your political voice heard. you pay taxes into the system yet you have no real voice in the political system as a non-citizen.

Voting doesn't botther me, only voted once in UK lol.

[Nich-Nick 3,353]

I think I may do it but not for a while. My UK passport still has 7 years, I will get a 10 year GC so really no rush.

You can renew your British passport forever and also have a US passport--a dual nationality so to speak.

I just need to know more, mainly about benefits and my pension as I still have a UK bank account and don't know if this will be taxable even though the U.S won't know about it.

As an LPR you are required to report foreign bank accounts if the total of all accounts exceeds $10,000 (when converted to USD.) Your first report for 2011 is due to the US Treasury Dept (not an IRS tax return item) by June 1, 2012. The form for reporting is TD F 90-22.1 and is commonly called the FBAR and has been around for years. Info http://www.irs.gov/businesses/small/article/0,,id=210244,00.html

It is not taxable because you have already paid UK income tax at the time you earned the money and put it in the bank. If you earn interest on any UK accounts or pensions, that is reportable as income on your tax return. If you pay UK tax on the interest earned, then a foreign tax credit may apply.

New IRS requirements this year include Form 8938 commonly called FATCA for reporting (as part of your tax return) foreign assets and accounts and the value of your pension seems to fall into that category by most interpretations. Real estate does not unless it is for investment (like renting out the house.) There are threshholds. In general if the value of all accounts together (bank, pensions, shares, etc) exceed $100k if married, then you file Form 8938 as part of your return. FATCA info http://www.irs.gov/businesses/corporations/article/0,,id=255061,00.html

When you start getting monthly pension payouts, that is taxable as income. If UK taxes are taken out, then that may be another story. You can request that no UK tax be levied because you will be paying US tax. It's all to do with tax treaties and we haven't gotten to receiving the UK pension yet so I don't know the details.

Advantage to citizenship: If you get abducted in a foreign country, the US Navy SEALS will blast their way in and load you up in a helicopter, while leaving your captors full of bullet holes...oh nevermind...I watch too much TV.

Edited March 13, 2012 by Nich-Nick

[Dave H 12]

You can renew your British passport forever and also have a US passport--a dual nationality so to speak.

As an LPR you are required to report foreign bank accounts if the total of all accounts exceeds $10,000 (when converted to USD.) Your first report for 2011 is due to the US Treasury Dept (not an IRS tax return item) by June 1, 2012. The form for reporting is TD F 90-22.1 and is commonly called the FBAR and has been around for years. Info http://www.irs.gov/businesses/small/article/0,,id=210244,00.html

It is not taxable because you have already paid UK income tax at the time you earned the money and put it in the bank. If you earn interest on any UK accounts or pensions, that is reportable as income on your tax return. If you pay UK tax on the interest earned, then a foreign tax credit may apply.

New IRS requirements this year include Form 8938 commonly called FATCA for reporting (as part of your tax return) foreign assets and accounts and the value of your pension seems to fall into that category by most interpretations. Real estate does not unless it is for investment (like renting out the house.) There are threshholds. In general if the value of all accounts together (bank, pensions, shares, etc) exceed $100k if married, then you file Form 8938 as part of your return. FATCA info http://www.irs.gov/businesses/corporations/article/0,,id=255061,00.html

When you start getting monthly pension payouts, that is taxable as income. If UK taxes are taken out, then that may be another story. You can request that no UK tax be levied because you will be paying US tax. It's all to do with tax treaties and we haven't gotten to receiving the UK pension yet so I don't know the details.

Advantage to citizenship: If you get abducted in a foreign country, the US Navy SEALS will blast their way in and load you up in a helicopter, while leaving your captors full of bullet holes...oh nevermind...I watch too much TV.

Wow, that's a lot of info, thanks. I will need to ask my pension provider to find about the taxing issues.

[NW Mushroom 5]

I decided to go for US Citizenship for two reasons:

1. The right to vote (taxation without representation!!!)

2. The ability to return to the UK in the future without losing my right of abode in the United States.

I have to admit that the taxation issue is a tough one to get over (the requirement to submit a tax return each year and pay taxes on any earnings over the foreign income exclusion) but I figured it was worth it due to the two reasons above.

[Dave H 12]

I decided to go for US Citizenship for two reasons:

1. The right to vote (taxation without representation!!!)

2. The ability to return to the UK in the future without losing my right of abode in the United States.

I have to admit that the taxation issue is a tough one to get over (the requirement to submit a tax return each year and pay taxes on any earnings over the foreign income exclusion) but I figured it was worth it due to the two reasons above.

My USC wife does all my finances and taxes, but as I can see there are just a couple of reasons why I should become a citizen. I will obviously look deeper into it and ask some UK friends over here to ask their opinion as well. Sorry I couldn't reply fully earlier, I was at work and using my phone and the writing was really small.

Thanks everyone.

Dave

[leonje 1]

Your wife won't lose her Italian citizenship if she acquires US citizenship.

From http://www.esteri.it/MAE/EN/Ministero/Servizi/Sportello_Info/DomandeFrequenti/Cittadinanza/#domanda14 :

I am an Italian citizen but am living abroad. If I take another citizenship will I lose my Italian one?

Since 15 August 1992 the voluntary acquisition of foreign citizenship no longer leads to automatic loss of Italian citizenship, with the exception of citizenship in any of the following States: Austria, Belgium, Denmark, France, Luxembourg, Netherlands and Norway. (France allows for some exceptions in the cases of facilitated naturalisation envisaged in the II Amendment Protocol to the Strasbourg Convention of 24.03.1995).

It's not really necessary no, some don't because they either don't see the benefit of it or they don't wish to lose citizenship to another country (since some will make you forfeit). We decided against it for my wife because of her Italian Citizenship (she's dual Argentine/Italian) which we don't want to lose for various travel reasons.

[R and F 34]

You can renew your British passport forever and also have a US passport--a dual nationality so to speak.

As an LPR you are required to report foreign bank accounts if the total of all accounts exceeds $10,000 (when converted to USD.) Your first report for 2011 is due to the US Treasury Dept (not an IRS tax return item) by June 1, 2012. The form for reporting is TD F 90-22.1 and is commonly called the FBAR and has been around for years. Info http://www.irs.gov/businesses/small/article/0,,id=210244,00.html

It is not taxable because you have already paid UK income tax at the time you earned the money and put it in the bank. If you earn interest on any UK accounts or pensions, that is reportable as income on your tax return. If you pay UK tax on the interest earned, then a foreign tax credit may apply.

New IRS requirements this year include Form 8938 commonly called FATCA for reporting (as part of your tax return) foreign assets and accounts and the value of your pension seems to fall into that category by most interpretations. Real estate does not unless it is for investment (like renting out the house.) There are threshholds. In general if the value of all accounts together (bank, pensions, shares, etc) exceed $100k if married, then you file Form 8938 as part of your return. FATCA info http://www.irs.gov/businesses/corporations/article/0,,id=255061,00.html

When you start getting monthly pension payouts, that is taxable as income. If UK taxes are taken out, then that may be another story. You can request that no UK tax be levied because you will be paying US tax. It's all to do with tax treaties and we haven't gotten to receiving the UK pension yet so I don't know the details.

Advantage to citizenship: If you get abducted in a foreign country, the US Navy SEALS will blast their way in and load you up in a helicopter, while leaving your captors full of bullet holes...oh nevermind...I watch too much TV.

:dance: :rofl: :bonk: :bonk: