Americans Giving Up Passports Jump Sixfold as Tougher Rules Loom

[asad71]

Proof again that America is in the stranglehold of the blood-sucking Illuminati.

 

[PlanetWarrior]

The IRS visits you in Botswana? I don't think so.

It is not even Social Security taxes. If any US citizen earns more than $4500 in a year, no matter where, then it is mandatory to file a tax return. That return may be a simple form that shows no taxes due, but it must be filed.

Nope. Botswana is just one of my locations.

 

[Argus Panoptes]

Nope. Botswana is just one of my locations.

Ah, a member of the International Jet Set, for whom the new tighter regulations are designed for? Perhaps?

 

[Developereo]

Those are usually minimal. And are based on the understanding that you will return to the US eventually and ipso-facto wish to claim social security benefits which are generated on tax payer money. So, why should you be given freebies when you are old just because you lived abroad when essentially all the retirees "payed" for their social security during their employment years.

Not relevant.

The amount of SS benefits you get are calculated based on the amount of income tax (FICA) you paid. If you didn't pay much, you won't get much.

Most other countries tax you based on residence, not nationality. If you are actually using the services in the country, you pay tax.

 

[Developereo]

Only permanent residents and citizens are subject to the taxes. Foreign nationals buying property merely have to indicate the sources of the funds.

The only tax which is levied only on PR and citizens is FICA. Federal and State taxes are due on all income earned in the US by anyone living there (even on student or H1 visa).

 

[SQ8]

Not relevant.

The amount of SS benefits you get are calculated based on the amount of income tax (FICA) you paid. If you didn't pay much, you won't get much.

Most other countries tax you based on residence, not nationality. If you are actually using the services in the country, you pay tax.

But perhaps to offset the increasing burden on the economy of these social welfare programs..these taxed may come in handy.
After all, Income tax goes into a common treasury before it is rerouted to programs like Social security. Its not like your dollar will return to you. So you may not get much in social security if you did not pay much, or you may get a lot if you paid more. As the percentage for social security drops off after a certain high income bracket.. certain individuals may be funding others in social security and welfare. Perhaps to offset the now increasing burden, those that are abroad are to be taxed to make up for this deficiency.

 

[Developereo]

But perhaps to offset the increasing burden on the economy of these social welfare programs..these taxed may come in handy.
After all, Income tax goes into a common treasury before it is rerouted to programs like Social security. Its not like your dollar will return to you. So you may not get much in social security if you did not pay much, or you may get a lot if you paid more. As the percentage for social security drops off after a certain high income bracket.. certain individuals may be funding others in social security and welfare. Perhaps to offset the now increasing burden, those that are abroad are to be taxed to make up for this deficiency.

You are absolutely right that this push for taxes is to fund a SS system which is headed for bankruptcy. The (in)solvency of the whole SS system has been a sore point in American election campaigns for decades now.

My point was that expats who don't pay FICA are not stealing from the system since they won't be able to claim any benefits anyway.

In fact, the opposite is often true. I know of Swedish and other couples who want to make bucks in the US and return to Sweden when they get pregnant.

 

[China_Rising]

Americans Giving Up Passports Jump Sixfold as Tougher Rules Loom Americans renouncing U.S. citizenship surged sixfold in the second quarter from a year earlier as the government prepares to introduce tougher asset-disclosure rules.

Get ready to see Vietcong Gambit and JayAtl Hindustani on the list, *not* that they have any assets of note; rather, at the slightest sign of trouble they will easily discard their 'American pride' and rejoin their families in Vietnam and India, respectively.

 

[PlanetWarrior]

Ah, a member of the International Jet Set, for whom the new tighter regulations are designed for? Perhaps?

Indeed. Hence my protests

Proof again that America is in the stranglehold of the blood-sucking Illuminati.

Legend has it that it is also the land of vampires and aliens.

 

[Argus Panoptes]

The only tax which is levied only on PR and citizens is FICA. Federal and State taxes are due on all income earned in the US by anyone living there (even on student or H1 visa).

Those are deductions-at-the-source which can be claimed back after filing a return for students and other temporary categories, but not for GC holders or citizens.

 

[Developereo]

Those are deductions-at-the-source which can be claimed back after filing a return for students and other temporary categories, but not for GC holders or citizens.

FICA (SS/medicare tax) is different from state/federal income tax.

FICA can be claimed back by non-resident aliens. However, even they must pay state and federal income tax on income earned within the US.

In fact, if you fill out the right forms up front, your employer will not even withhold FICA from your income, so there is no need to reclaim anything.

 

[Argus Panoptes]

FICA (SS/medicare tax) is different from state/federal income tax.

FICA can be claimed back by non-resident aliens. However, even they must pay state and federal income tax on income earned within the US.

In fact, if you fill out the right forms up front, your employer will not even withhold FICA from your income, so there is no need to reclaim anything.

I tried to figure it out from here:

International Taxpayer

but that does NOT seem to be English that I can understand. It gave me a headache.

 

[Developereo]

I tried to figure it out from here:

International Taxpayer

but that does NOT seem to be English that I can understand. It gave me a headache.

A little tidbit about form 8939.

The filing threshold of foreign assets is lower for taxpayers living in the US. I don't know how many dual nationals and other taxpayers in the US even know about 8939, let alone file it.

Instructions for*Form 8938 (11/2012)

Taxpayers living in the United States. If you do not live outside the United States, you satisfy the reporting threshold discussed next that applies to you and no exception applies, file Form 8938 with your income tax return.

Unmarried taxpayers.

If you are not married, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year.

Married taxpayers filing a joint income tax return.

If you are married and you and your spouse file a joint income tax return, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year.

Married taxpayers filing separate income tax returns.

If you are married and file a separate income tax return from your spouse, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year.

Taxpayers living outside the United States. If your tax home is in a foreign country, you meet one of the presence abroad tests described next, and no exception applies, file Form 8938 with your income tax return if you satisfy the reporting threshold discussed next that applies to you.

Unmarried taxpayers.

If you are not married, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $200,000 on the last day of the tax year or more than $300,000 at any time during the tax year.

Married taxpayers filing a joint income tax return.

If you are married and you and your spouse file a joint income tax return, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $400,000 on the last day of the tax year or more than $600,000 at any time during the tax year.

Married taxpayers filing separate income tax returns.

If you are married and file a separate income tax return from your spouse, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $200,000 on the last day of the tax year or more than $300,000 at any time during the tax year.

 

[Argus Panoptes]

A little tidbit about form 8939.

The filing threshold of foreign assets is lower for taxpayers living in the US. I don't know how many dual nationals and other taxpayers in the US even know about 8939, let alone file it.

Instructions for*Form 8938 (11/2012)

I think that the advice to just hire a good tax accountant when dealing with anything IRS is pretty sound.

 

[Thirdfront]

Those are usually minimal. And are based on the understanding that you will return to the US eventually and ipso-facto wish to claim social security benefits which are generated on tax payer money. So, why should you be given freebies when you are old just because you lived abroad when essentially all the retirees "payed" for their social security during their employment years.

One can't claim ss benefits if he/she has not contributed 40 quarters (10 yrs) total.... so, this taxing world income is kind of joke...