Dual citizenship

[Chloe1981 9]

I was just wondering if when I apply for citizenship if i want to keep dual citizenship for the UK is there any different procedures or forms i have to file when I apply? Thanks 

[Wuozopo 4,293]

5 minutes ago, Chloe1981 said:

I was just wondering if when I apply for citizenship if i want to keep dual citizenship for the UK is there any different procedures or forms i have to file when I apply? Thanks 

Yes you can be dual.  I have British and American passports. There is nothing special to do when you file for US citizenship. Once you are a USC, then you must use your American passport when returning to the US. You may use your American or British passport to enter the UK on visits there.

Edited October 7, 2017 by Wuozopo

[martin bk 19]

Nope, same paperowrk. 

[Penguin_ie 5,997]

*****  Moving from K1 fiance visa to US Citizenship forum *****

[marcusa 31]

As both US and UK citizen, do you pay dual income tax because of the dual citizenship ?

[martin bk 19]

2 hours ago, marcusa said:

As both US and UK citizen, do you pay dual income tax because of the dual citizenship ?

It’s my understanding you only pay tax in the uk for any work you’re paid for  while working and employed in the uk. 

The USA taxes world wide income but I think their is an agreement if your working in the uk so you don’t get taxed twice, but you still have to do your tax return in the USA. 

But I haven’t got to that point yet so someone else may have more information. 

[Wuozopo 4,293]

12 hours ago, marcusa said:

As both US and UK citizen, do you pay dual income tax because of the dual citizenship ?

 

Per the tax treaty, you will never be taxed by UK and US on the same money. You pay the country where you reside. So even if you were working remotely for a UK company getting paid in £ into a UK bank account, but residing in Minnesota, you pay your income tax to the US. Once you are a USC or permanent resident, the US expects you to file a return If you earn income, even if you had moved back to the UK. That does not mean the US taxes your income. At that point, your tax is owed to the place of residence which would be the UK. Your required US tax return would be basically a "reporting" with no tax due. 

[Going through 5,671]

20 hours ago, Wuozopo said:

 

Per the tax treaty, you will never be taxed by UK and US on the same money. You pay the country where you reside. So even if you were working remotely for a UK company getting paid in £ into a UK bank account, but residing in Minnesota, you pay your income tax to the US. Once you are a USC or permanent resident, the US expects you to file a return If you earn income, even if you had moved back to the UK. That does not mean the US taxes your income. At that point, your tax is owed to the place of residence which would be the UK. Your required US tax return would be basically a "reporting" with no tax due. 

Canada has the same arrangement/treaty with the US in regards to taxable income.  

 

Question though---how does it pertain to assets owned?  I assume that assets physically in the US would be taxable only in the US even if I were residing in Canada at that point?

[NikLR 13,232]

1 hour ago, Going through said:

Canada has the same arrangement/treaty with the US in regards to taxable income.  

 

Question though---how does it pertain to assets owned?  I assume that assets physically in the US would be taxable only in the US even if I were residing in Canada at that point?

Depends on the value.  You may need an accountant with experience in international tax treaties and foreign owned assets to get the exact answer. 

[Wuozopo 4,293]

1 hour ago, Going through said:

Canada has the same arrangement/treaty with the US in regards to taxable income.  

 

Question though---how does it pertain to assets owned?  I assume that assets physically in the US would be taxable only in the US even if I were residing in Canada at that point?

 

You'd have to be more specific on what kind of assets and what kind of tax. In general, an "asset" is not income so federal income tax does not apply. If the asset was $50k in cash and it paid interest, then only the interest earned during the year is taxable as income.  If your asset was US property, that itself is not income but could have a property tax levied by the state, county, or city in which the property lies. Sales of certain assets like stocks that result in a profit could be taxed as a capital gain, but only on the net value you "earned" as profit. Those would depend on the tax laws of the country of residence where your tax is levied. There are many specific federal and local laws and these are just examples to explain why the answer to your question is "It depends......"

[Going through 5,671]

30 minutes ago, Wuozopo said:

 

You'd have to be more specific on what kind of assets and what kind of tax. In general, an "asset" is not income so federal income tax does not apply. If the asset was $50k in cash and it paid interest, then only the interest earned during the year is taxable as income.  If your asset was US property, that itself is not income but could have a property tax levied by the state, county, or city in which the property lies. Sales of certain assets like stocks that result in a profit could be taxed as a capital gain, but only on the net value you "earned" as profit. Those would depend on the tax laws of the country of residence where your tax is levied. There are many specific federal and local laws and these are just examples to explain why the answer to your question is "It depends......"

Was thinking US-based property (land and house, specifically).  I know I have to pay property taxes....was wondering if the double-tax scenario applies ONLY for income tax, and not property taxes, etc.  I would assume it applies to property tax as well regardless of whether the filer was residing in the US or not at the time.

[Wuozopo 4,293]

1 minute ago, Going through said:

Was thinking US-based property (land and house, specifically).  I know I have to pay property taxes....was wondering if the double-tax scenario applies ONLY for income tax, and not property taxes, etc.  I would assume it applies to property tax as well regardless of whether the filer was residing in the US or not at the time.

 

Does the country of Canada collect property tax on all property owned?. I have no clue what a Canadian return looks like.  On the flip side,  if you lived in the US and owned property in Canada, the IRS does not levy property tax. Your property tax would go to the local Canadian property tax collector where the land is located unless the federal government of Canada collects for the entire nation. That's a question to ask Canada. I doubt property tax would be collected on a national level and I doubt they would tax property not even in their country.  But if you sell the property for a profit or earn money for renting it, then you get into Income or capital gains and not property tax. 

[Going through 5,671]

38 minutes ago, Wuozopo said:

Does the country of Canada collect property tax on all property owned?

I honestly don't know---never owned property myself in Canada when I lived there.

[broppy 204]

On 10/8/2017 at 9:19 AM, Wuozopo said:

 

Per the tax treaty, you will never be taxed by UK and US on the same money. You pay the country where you reside. So even if you were working remotely for a UK company getting paid in £ into a UK bank account, but residing in Minnesota, you pay your income tax to the US. Once you are a USC or permanent resident, the US expects you to file a return If you earn income, even if you had moved back to the UK. That does not mean the US taxes your income. At that point, your tax is owed to the place of residence which would be the UK. Your required US tax return would be basically a "reporting" with no tax due. 

That's not quite true. There's a limit to how much foreign tax relief you can claim on a US tax return. A US (or dual UK/US) citizen earning enough money (somewhere in the six figures) while resident in the UK can expect to pay tax to both countries.

[Wuozopo 4,293]

9 hours ago, broppy said:

That's not quite true. There's a limit to how much foreign tax relief you can claim on a US tax return. A US (or dual UK/US) citizen earning enough money (somewhere in the six figures) while resident in the UK can expect to pay tax to both countries.

 

Yes, you are probably right, but the complexities of the tax code are not easily summarized in a paragraph. Your average Joe earning $25k a year is not going to pay full taxation on his 25k to both countries. 

 

Could that six figure earner not choose the credit for foreign taxes paid option if his earnings exceeded the foreign earned income exclusion option?