American Expats Take Note: Uncle Sam Wants Your Money

[Mike S]

Yes, but I was replying to the article, not jpbago's comment. In the article the lady as the example has lived out of the US for over 30 years yet is expected to pay US taxes on money NOT made in the US. It is absurd. She is not living in the US, not making money in the US, not using the US "safety net", so she should not even be filing US tax forms! :tiphat:

 

Sorry about that I see what you mean now .... the woman in the article not Janet ..... :blonde:

 

I couldn't agree more IF she pays taxes in the country she lives in ..... but so many people try to evade paying tax on their earnings by claiming they are paying their payroll taxes to their home country when in fact they pay neither to the country they are working in or the home country they are residents in .....

:cheersty:

[OnMyWay]

But using this lady as an example - she has not lived in the US for over 30 years.  She should not be filing US taxes.  She owes nothing.  It is ridiculous to think she does.

 

Tuka, I don't think that is true.  If you have income over X amount you are expected to file, even if the income is overseas.  If you pay taxes to your host country and the host country has an agreement with the US, an adjustment can be made for "Foreign Tax Credit".

 

Example:  I take my 10 million savings (in my dreams!) and move it to BPI in the Philippines.  I get 3% interest from BPI, which is 300,000 a year.  I have to file a return in the US and the tax collected by the Philippines might be a credit.

 

The people who renounce their citizenship have nothing to gain from it.  For instance, they are not expecting to collect social security.

 

Disclaimer:  I am not a tax professional.  Consult your tax professional!

[jpbago]

In the past most clients who renounced citizenship were green-card holders, dual citizens or those who had been living abroad for many years, Christensen said. (not "Born in the USA" citizens.) They had no real ties to the USA.

While people are talking about moving because of higher taxes, most are considering crossing state borders from high-tax states such as California or New York to places like Texas and Florida that don’t have state income taxes, Christensen said.

“It’s really not worthwhile for most people to give up their passports,” he said.

This is from another tax attorney: http://www.bloomberg.com/news/2013-02-22/cost-of-dropping-citizenship-keeps-u-s-earners-from-exit.html

In Canada, in order to not have to pay taxes when not living there, you have to give up a lot more than just your passport. Ask google. A vagabond can do it but if you have property, bank accounts, pensions, credit cards, social contacts, health care, a will, life insurance, etc, then it is not worth it and very difficult. You may think that you have no ties but the taxman thinks that you do. And the taxman always wins. You might win in the end but your money is all gone by then.

[Thomas]

You may think that you have no ties but the taxman thinks that you do. And the taxman always wins. You might win in the end but your money is all gone by then.

That kind of goes for Sweden too  = The Taxman try hard to find ties to Sweden even when they realy are to small to be reason to tax there...

 

I plan to try to USE that. (=I keep my Swedish company and rent some room there, because I will have to put stuff somewhere anyway, which I haven't moved yet. Show only just a litle profit in my company. I'm a good acountant, so I will have no problem doing that at least for some years  :)  Then I will be entitled to rent subsidity and a better retirement pay.) Perhaps that will change the Taxman's mind and they will try instead to make it I DON'T have ties...  :hystery:

 

If you do the fights in court by yourself, then it don't cost anything more than time and postal stamps. I have wonn some of the cases against the Taxman, but not all. It's much harder to winn against officials even when you are obviously right   :th_unfair:   I have some such cases, I have lost some, but the court now finaly found me being right in an other case but with SAME situation basicly, so now I will try to get indemnity from the Swedish state by going to a national institution, which is suppoused to cover when officials screw up. If I'm lucky and get all, I will get enough to build a rather big house in RP, which the Swedish Taxman wouldn't get any tax by...  :mocking:

[Daydreamer]

after all the good ol' USA is still the policeman for the world and I'm sure will soon get it's way .... if it doesn't go bankrupt before .... :unsure:

It already has (or just about)! The shutdown has got a lot of people spooked (me included). :th_unfair:

[Daydreamer]

Yes, but I was replying to the article, not jpbago's comment. In the article the lady as the example has lived out of the US for over 30 years yet is expected to pay US taxes on money NOT made in the US. It is absurd. She is not living in the US, not making money in the US, not using the US "safety net", so she should not even be filing US tax forms! :tiphat:

yeah thing is though, seeing as she's not and they are broke I think they're going to try and rob anyone that used to be an American no matter where they live. I think the saying goes like this "You can't just walk out, you can only leave feet first"