American tax time approaches again

[Super_BQ]

The exit tax plan as well as just the whole tax plan of the USA is a nightmare. The increased cost to renounce your citizenship is just way to high. I don't care though, I will pay it, have to. It is way better than being strapped for a lifetime of tax to USA.

If i'm not mistaken, there still is a requirement to file your tax forms to the IRS AFTER you have renounced your citizenship. I believe a stand down of 2 or 3 years. The rational behind the IRS is so citizens can not "frame" their exit plan by hiding assets and possible tax liability the IRS would be entitled to.

Overall, the IRS tax laws are not unique. There are a lot of developed nations that assess taxation on a whole wide world basis. Where the IRS stretches it's powers is it's strong bond to citizenship rather than just residency alone.

So my family of our will pay $2450.00 x four to renounce our citizenship!

Perhaps a small cost compared to future taxes you will have to pay? No? As long as NZ has a tax treaty with the US, the only inconvenience is just filing. You will not be double taxed. Renouncing citizenship shouldn't be an issue of tax but rather an issue that where the country you reside does not allow you to hold citizenship elsewhere.

[Hagabel]

OH Yeah H&R block, that is a good place. Where they power train complete unemployed idiots on how to do your taxes. No thanks.

I was just stating whom we used and we have had no issues.

[kiwieagle]

So my family of our will pay $2450.00 x four to renounce our citizenship!

You can't renounce your children's citizenship.

It will be interesting to see what your friends in France come up against since France is one of the nations signed on to FATCA.

Hopefully you'll keep voting until you renounce. You're right, there are tons of people in this situation and it's a growing constituency.

[Hagabel]

We are all US citizens and also UK, but understand you can only renounce your OWN citizenship.

[Oregonkiwi]

It's time to start thinking about getting around to doing those pesky US taxes again... If you haven't filed as a taxpayer abroad before, this is a good place to start https://www.irs.gov/Individuals/International-Taxpayers
Income tax returns are due June 15 (with the automatic 2 month extension).
The earned income exclusion amount is US$100,800 for 2015.

FBAR filings are due 30 June, no extensions - it looks like the deadline date is changing next year?

Note: The recently enacted Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 changes the standard FBAR due date to April 15 beginning with the 2016 calendar year reports, which are due in 2017. The FBAR deadline for calendar year 2015 reports remains June 30, 2016 (with no extensions allowed).

[Oregonkiwi]

It looks like the deadline date is changing next year

Looking into this more, I'm still not sure what this has to do with "Surface Transportation and Veterans Health Care"...the FBAR deadline is changing to April (to bring it in line with tax return dates) in 2017 but it will be possible to request a 6-month extension (currently no extensions are given).

[Oregonkiwi]

here's a recent (March 15) IRS update that sums up filing requirements and has some handy links:
https://www.irs.gov/uac/Newsroom/For...g-Requirements

[Auburn]

And this is why I didn't apply for U.S. citizenship for my kiwi kids. Just freaking ugh!

[Super_BQ]

The interesting point I find is:

"Taxpayers with an interest in, or signature or other authority over, foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2015 must file FBARs. It is due by June 30 and must be filed electronically through the BSA E-Filing System website."

That's quite a drop from $50K - though further down it does say it varies between person to person.

[Bozeman]

If you're like us, your kids were US citizens on the day they were born. Whether they have a US passport or not makes no difference. (That's how I understand it...)

*** these comments were meant to be in reply to Auburn's post ***