Benefit of having US Passport while living abroad?
What are the pros and cons of having a US passport if you want to live abroad? I know you still gotta pay tax, but I have found nobody who could tell me how that works. Anyone with a good set of overall information would be very appreciated.
The biggest benefit you are going to get is “help and rescue” from US government if you get stuck in a life threatening or emergency situation in a foreign land.
Foreign Earned Income Exclusion allows you to exclude a certain amount of your FOREIGN EARNED income from US tax. For tax year 2018 (filing in 2019) the exclusion amount is $103,900
Valuable! Do they list it on their website somewhere?
Yes
You can call in an air strike using the number on the back
... you can come back
Wrt to taxes: I'm pretty sure you just file a tax return, like everyone else does.
It gets really, really complicated very quickly. Eg what about deductions for foreign taxes paid? Which exchange rates are used? What about countries that have tax years that are different from the calendar year?
You can use it to your advantage if you are tax savvy. If not get a good accountant.
I spent a decade living and working abroad. Many countries have tax treaties w the US. Typically this means up to a certain $ amount is exempt from US taxes. Anything above that amount is taxed. If you purchase property abroad or have other local assets the US is usually unable to track this unless you claim on your local taxes and get audited by the US. They have the right to subpoena your local returns under most treaties. The biggest benefit is that you can return, live and work in the US at will. For example, after a decade my position was eliminated by my international company but I was able to return easily to the Bay Area and land a job just like I would if I was living in the area. Also giving up your citizenship raises difficulties in getting it back. I can only imagine what that process is like especially in the current immigration climate.
Thanks for sharing all that!! Do you know if you are eligible for social security benefits (if they still exist then), if you retire in a different country and just live there? I
Yes absolutely. Many ppl end up retiring in foreign countries bc it’s cheaper, keeping a US bank acct and having their SS checks direct deposited. If you end up marrying a foreign national, your spouse will also be eligible to receive a portion of your SS benefits even if they are in their home country.
You can live abroad and then go back to the US when you wish! As a family we have wanted to live in Europe for a few years so might be doing just that for few years and then back to the bay area
You get a lot of love every where you go.
Lol. That's good sarcasm 😁
Depends on where you go
If you are doing an expat assignment make sure you have income tax equalization as part of your package so you don’t get double taxed
Thank you, writing this down just in cass! I won’t be doing expat assignment. I’m considering to go live in a different country and start from scratch there.
You can travel without visa to many other countries.