American Passport/Registration for baby

[Obiwan]

thank God i'm not american! too many taxes for my liking... much better to be canadian.... a LOT of tax, but if you're not resident, you don't have to pay it!

Indeed Especially when one gets used to HK 16% tax, it can sometimes be difficult to go 'home' where your disposable income is significantly reduced (not to mention no helper, and paying the nanny USD30k a year).

 

[MommyTo3]

Agree, make sense! So when your children turn 18, do they have to pick one citizenship, i.e. renounce the other?

They can keep the US without a problem (as long as the IRS is being paid), and the Dutch law is rather vague. Especially since we're both Dutch, how could they take Dutch citizenship away. But there have been a lot of confusing cases with immigrants, etc. so that's why things are a little unclear, I think they should be able to keep both.

 

[gladyswly]

well we have been going back to US every year since my husband has left the country... last time we spent a month there and one year he spent 3 months there and no prob... I talked to him about this too cuz I just know that americans need to pay US tax even living overseas when I was watching it on Money Magazine on Pearl... but he said no prob and his friends don't file too... I am confused.

 

[Obiwan]

well we have been going back to US every year since my husband has left the country... last time we spent a month there and one year he spent 3 months there and no prob... I talked to him about this too cuz I just know that americans need to pay US tax even living overseas when I was watching it on Money Magazine on Pearl... but he said no prob and his friends don't file too... I am confused.

Think in general it is a gamble. If the IRS discovers that taxes are not being paid, there will be a long string of investigation that can be very troublesome. Hence, most will not mess with the IRS and will file and pay tax accordingly.

 

[carang]

yeah, eventually they'll get you...(or him)... hey, that's even how they got Al Capone!

 

[wwong68]

Since u guys are living outside the States, there's a tax exclusion. U need to file but no need to pay if you make US$ 90K per year. If you make anything more than that, then u need to pay the US Tax. I think the IRS only try to get the ones who are like bankers and lawyers. As long as you are not in these categories, I don't think they will bother you.

Also if you don't pay, when u go back to the States. Don't expect to get any Social Sec. or medicial.

 

[gladyswly]

well.. a bit shame to tell but my husband doesn't make that much of the money, maybe that's why we are not caught yet!

We never expect anything from the US government anyway, Social Security would be given all out way before my husband is qualified for that, this system is retarted. Medical benefit? Is there any in the states? lol.

 

[Obiwan]

Yup, the first USD90k (or is it USD80k) is tax exempt. If it works out that your husband doesn't have any tax due, wouldn't it make better sense to file? Unless you are preparing for the future where there is net taxable income ....

It is hard for the government to be after every American, but if one is investigated, it's just very troublesome, in my opinion, not worth taking the risk Trust me, there are many moments I am tempted to not declare/under declare, but I always chicken out and be a law abiding citizen.

 

[carang]

obiwan, think about the lessons that you are teaching your children... good for you!

i'm the same way... i have two businesses. most of the income from one of them is cash-in-hand. hubby has on occasion said that i don't have to declare all of it... but i do, everytime.

 

[mwong222]

to OP:
I got both passports for my son. the deadline for US citizenship is 18 yrs old but i wanted to bring my son back to the US w/o getting a visa. and wanted the return home card so easier for him to travel to China. Can have both. just not legally. no one really checks (there are still a lot of HK citizens with 2 passports). when he turns 18, he can decide on his own what he wants to do. but for now, he is free to travel to most parts of the world.

for taxes, i pay US taxes and will report my son on IRS forms. price to pay for being US citizen. when he earns income though, whether he pays taxes or not depends on what he uses when working. if he works in HK as HK citizen, no one is going to check (a lot of HK/US citizens don't pay US taxes) if he is also US citizen. grey area. after all, sadly there are kids who just don't work.

for the poster whose husband never paid taxes. i don't think the IRS will catch him. the reason is he never filed taxes as an adult so no reason to investigate him. as i said earlier, there are people who just don't work. but technically, no matter how much he earns (unless under 11k USD), he has to report even if he doesn't owe taxes. also he is supposed to report his bank account info (people tend to forget this part and focus on income). so if his bank account is based on his US passport, he may be screwed.