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  Canada Immigration Forum > Immigration & Citizenship > Citizenship > Dual citizen US/Canada daughter denouncing US citizenship
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Dual citizen US/Canada daughter denouncing US citizenship

Senior Desi
Member since: Dec 05

Posts: 939

Originally posted by deewar25


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
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Member since: Aug 10

Posts: 58

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).

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.
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
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Garvo GujaratiMember of Administrators
Member since: Nov 01

Posts: 3080

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
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