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submitted 8 months ago by naturalgasbad@lemmy.ca to c/worldnews@lemmy.ml
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[-] the_post_of_tom_joad@sh.itjust.works 7 points 8 months ago* (last edited 8 months ago)

unless you're a US citizen which requires the extra step of completely renouncing your US citizenship or continue paying US taxes (and therefore supporting the military mostly lol) regardless of where you may live in the world

[-] RGB3x3@lemmy.world 3 points 8 months ago* (last edited 8 months ago)

It's complicated, but not necessarily. The US has a lot of agreements with other countries for you to avoid having to pay taxes for both countries. If you're living in a country with one of those agreements, you can file with the US to claim you've paid taxes to the foreign government.

And the US doesn't force you to renounce your citizenship, it's generally other countries that don't allow dual citizenship; Germany and Denmark for example don't allow it.

is there something you can point me to that confirms this? i'm not saying you're wrong but my quick google search said the opposite.

[-] RGB3x3@lemmy.world 2 points 8 months ago

I was wrong about Denmark citizenship, but look here for an explanation of the tax treaties and the FEIE.

https://www.hrblock.com/expat-tax-preparation/resource-center/filing/20-things-americans-overseas-should-know-about-taxes-for-expats/

[-] Viking_Hippie@lemmy.world 1 points 8 months ago

And the US doesn't force you to renounce your citizenship

It does if you don't want to continue paying US taxes no matter where you live and work.

other countries that don't allow dual citizenship; Germany and Denmark for example don't allow it.

I don't know about Germany, but that hasn't been true of Denmark for nearly a decade.

I get the feeling that your source is located somewhere between your spine and the backs of your thighs.

[-] RGB3x3@lemmy.world 3 points 8 months ago* (last edited 8 months ago)

I was wrong about Denmark. I did some research last year and apparently what I found was wrong.

But the US has Tax treaties, the FEIE, and the Foreign Tax Credit programs for expats to avoid paying US tax when overseas. But you still need to file with the US.

See here:

https://www.hrblock.com/expat-tax-preparation/resource-center/filing/20-things-americans-overseas-should-know-about-taxes-for-expats/

Thanks for the clarification!

this post was submitted on 26 Feb 2024
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