I'm an Australian and recently received a job offer in the states so I applied for a US passport because one of my parents is American and it was a really quick process. Now I know how easy it is, I'm thinking of getting my British passport as well now, as it might come in handy one day, but I'm concerned how this might further complicate my taxes down the line, as currently I'll have to file taxes in both Australia and the US. Is there anything specific you should consider before claiming a citizenship? And for people who are dual citizens, how much of a hassle is it generally?
Open a new bank account here in the US.
US citizenship is actually a great hassle if you don’t plan to live rest of your life in USA. It is extremely cumbersome to even open bank accounts. Many foreign banks don’t like doing business with Americans due to IRS reporting issues. Also filing your taxes in both Australia and USA would be a huge pain with FBAR, fatca etc on top of regular returns. I would only take US citizenship if I was planning to settle here
Don’t file as American. IRS won’t see it.
Once you get US citizenship you are considered American for tax purpose irrespective of what other passports you hold. If this were the case all American expats would just say they are using another citizenship
This is great and everything, but what’s the point of collecting citizenship’s? There’s multiple tax situations and if you want to give up US citizenship, see Eduardo Saverin
I had to because I didn't meet visa requirements. The British one is more of a why not I guess. Could come in handy one day.
If you received US citizenship at birth through descent from an American parent, you won't be eligible for a visa anyway. The consulate will reject your visa application and instruct you to apply for a US passport.
The US is one of two countries in the world that tax the global income of its citizens. As a British citizen; If you earn £0 in the UK you have a £0 tax liability. You also do not have to file paperwork for that £0 tax bill. Some countries do not allow multiple citizenship’s but Australia, US and Britain do. Do it
Australia taxes on global income as well. Thanks about the British tax info though, good to know.
Or maybe I'm confusing citizenship and residency for tax purposes. I guess the US citizenship is the only one that comes with that added hassle.