Back to Home PageWelcome Guest! Register | Login | Home | Contact Us | Site Map | Advertise | FAQ | Search
Canadian Desi
    Charcha


        
  Canada Immigration Forum > Immigration & Citizenship > Citizenship > Dual citizen US/Canada daughter denouncing US citizenship
Last Post | Newest Post
 
< [ 1 ] [ 2 ] >

Dual citizen US/Canada daughter denouncing US citizenship




cdn_dude
Senior Desi
Member since: Dec 05




Posts: 939
Location:


Quote:
Originally posted by deewar25

Thoughts?



Renouncing the US citizenship is a big deal - especially for your child who has not graduated and/or entered the workforce yet. Make sure you know the facts, consequences and what you are doing. I would strongly encourage seeking professional advice before taking this step. Clearly, forum like this is not a great way to seek advice for such an important decision.


 
Last edited by: cdn_dude on 25-09-17 21:14:59
Post ID: 236069 25-09-17 21:14:18
Report Abuse
luckysaab
Desi
Member since: Aug 10




Posts: 58
Location:


The $10,350 amount is the standard deduction for everyone but making more than that means you could potentially owe taxes. This is only true for US residents so she don't need to worry. For US citizens living abroad the important amount is the 'earned income' of $101,300 (for 2016).
https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion

There is no such thing as paying a lump sum tax of $100K for a sale of primary residence of $300-$400K gain. The US law says if you owned and lived in the place for two years before the sale, then up to $250K of profit is tax-free and if you are family the tax-free amount is $500K. And then there is the whole estate exemption thing of 5 million + if the house was gifted or inherited.

As for filing requirement the general rule of IRS is that if you don't owe money you don't have to file taxes. You can still file for whatever reason, like needing a proof of income or applying for a student loan but you are not required. IRS has an interactive calculator that tells you if you need to file taxes.
https://www.irs.gov/help/ita/do-i-need-to-file-a-tax-return
This one is tailored for US residents. I don't believe there is one for US citizens living abroad but you get the picture. IRS don't care much about average US citizens living abroad.

Not sure about your daughter's financial situation but the bottom line is you only worry about US taxation if you are multi-millionaire. In that case you seek professional help.

<Long Live Canada>


-----------------------------------------------------------------
I pointed you at the stars and all you saw was the tip of my finger

 
Post ID: 236100 04-10-17 00:00:21
Report Abuse
Garvo GujaratiMember of Administrators
Admin
Member since: Nov 01




Posts: 3080
Location:



Generally speaking taxes are lower in the USA. So in case when the returned is filed for Both in Canada and USA, it turns out that you have to pay extra to the Canadian Government. Just a ball park number, but on an Income of say US$100,000, after filing return and paying something to Uncle Sam, the Canadian Government would ask for another $5,000.

So according to me, it is better to Keep the citizenship now and just file a return in both countries. It keeps the options open.

-----------------------------------------------------------------
A Proud Indian Canadian

 
Post ID: 236101 04-10-17 08:19:14
Report Abuse
Contributors:
cdn_dude(1)  deewar25(5)  Full House(1)  Garvo Gujarati(1)  icame(3)  luckysaab(2)  
< [ 1 ] [ 2 ] >
 
Show Printable version
Send this page to a friend
Add to favorites
 



 
Web
CanadianDesi
Please Contribute!
Write an Article
Send Community News
Create Photo and Video Albums
Submit Good Pictures
List Useful Websites
Post Jobs
Submit Events
List for FREE!
Businesses
Classifieds
Social Organizations
Religious Places
Employment Agencies
Email Page
Your Email
Friend\'s Email

Advertise Contact Us Privacy Policy and Terms of Usage FAQ
Canadian Desi
© 2001 Marg eSolutions


Site designed, developed and maintained by Marg eSolutions Inc.
//-->