Increasing number of people renouncing US Citizenship

In 2013, a record 3000 people renounced their US Citizenship. They couldn't deal with increasing burden of tax filing as expats.

http://money.cnn.com/2014/02/17/pf/t...html?hpt=hp_t3

Makes me wonder if all the hoola hoopla about getting a GC and citizenship is worth it.

CleanSock

Maybe not…someone had written this in the comments section

I was one of the US citizens who renounced in 2013. I am a middle class homemaker who was born in Canada to US parents. In recent years, filing my US taxes has become increasingly complicated and expensive. Although I have never lived or worked, invested, or earned money in the US, I still filed my taxes as I was expected to. But it didn't seem fair to me, ultimately, that if I ever sell my Canadian home (paid for by my non-American spouse's income) I had to pay capital gains to the US. And it didn't sit right with me that my estate, which has no investments, property, or money from the US, would be taxed after my death before it could be inherited by my Canadian children. Ultimately, I found US tax law to be overly complicated and intrusive, and my Canadian passport gave me all the freedom, support, and travel opportunity (and then some) that I needed. And it did so simply. I simply did not see the need to be American anymore. And now I have 400-500$ more each year that I did not have to spend on my US Tax Accountant to file taxes that showed that I owe nothing. There is no agenda from people like me who renounce. I suspect many of us are dual citizens who are looking to streamline their financial life and avoid the headaches and minor costs incurred by continuing to be American as we live our lives in other countries. .

So it's applicable to middle class people too.

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Originally Posted by sportsfan33

Unless you are a multimillionaire/billionaire, that article is not applicable AS OF NOW. However, with the punitive nature of the US taxes, an increasingly incompetent schooling system and an increasing pervasive big brother government, we might see several middle class folks follow the suit. It does make you wonder though. This ridiculous wait has reached a point, where it won't make any difference now when the GC arrives.

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Just to make a note here, the tax rules are same to the Citizens / GC holders and even the H1Bs(who are filing 1040/1040EZ).

That's true..... except if you are a student on EAD then you have a different set of tax rules. SS and medicare taxes are definitely not applicable and even the federal taxes might be different.

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Originally Posted by gc0907

Just to make a note here, the tax rules are same to the Citizens / GC holders and even the H1Bs(who are filing 1040/1040EZ).

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Many people are still opting for renunciation, though for those who are cash strapped, the need to revoke US citizenship leads them to dilemma because it also expensive and complex. They must pay taxes back dated to 5 years coupled with an exit tax charge before making the application.