Why retain US citizenship?

[dienstuhr]

My wife has recently discovered that she may be a US citizen. She was born in Canada, lived her entire life in Canada (less some time spent overseas in Europe and China), owns no property in the USA, and has never lived or worked in the United States... but her mother was a US citizen when my wife was born.

We travel on Canadian passports and have no plans to move to the USA - great place to visit (and we do, often) but wouldn't want to live there.

Is there any reason why she would want to retain US citizenship?

Thanks,

d.

[rick-l]

Based on you screen name probably not.

dienstuhr

Now accepting US $ at par

[stomachmonkey]

I have a similar situation with Germany.

She may no longer be a US citizen.

The US does allow dual citizenship but with stipulations.

If she does qualify, is a dual citizen and it does not cause any conflicts with her Canadian citizenship then may as well keep it.

Best to consult with an attorney for the specifics.

[Rick Lee]

Unless you travel to countries where US citizens don't need visas and Canadians do, I can't see the point of it. But I'm not aware of any such countries. Either passport is pretty good for visa-free travel.

[dienstuhr]

Originally Posted by stomachmonkey

I have a similar situation with Germany.

She may no longer be a US citizen.

The US does allow dual citizenship but with stipulations.

If she does qualify, is a dual citizen and it does not cause any conflicts with her Canadian citizenship then may as well keep it.

Best to consult with an attorney for the specifics.

My understanding is that the only sure way to rid herself of US citizenship now is to renounce it formally.

Until then a citizen has all the obligations of citizenship, including filing US tax returns.

This is where things get a bit scary for people who didn't know they were citizens, or had this obligation:

Tax penalties on U.S.-Canadian citizens in Canada "outrageous," MP Don Davies says | The Vancouver Observer

[Rick Lee]

I wouldn't worry about it. Seems you could wait until a tax audit to renounce any claim to US citizenship. At that time it would have to be a very easy case to make that your wife was never a US citizen, never claimed such, never worked in the US and doesn't owe any US income tax.

[stomachmonkey]

She was not born in the US so her automatic status is a bit grayer.

I don't know what the Passport process/paperwork in Canada entails but she may very well have renounced her citizenship while applying for it. Unlikely given the close relationship between the 2 countries but possible.

You need to talk to an attorney.

[kanadary]

i am guessing you and your wife don't have kids? if you do and they possiblity plan on working down here then maybe she should keep it. could be easier for them. lots more opportunities in the us, atleast it was 15 yr ago.. otherwise you have to move east unless you're there already. not much in vancouver.

[krystar]

but parental citizenship doesn't transfer to child. in US it's place of birth. why else do u think all these asian and mexican illegals come here and want to get pregnant immediately? kid pops out on american soil, it's now american citizen and you're illegally immigrated but legal caretaker.

[Dottore]

The US is the only country in the world AFAIK that taxes it's citizens on their worldwide income regardless of where they reside.

On the facts you give, I can see no reason to retain the US citizenship. It's a potential liability.

[dienstuhr]

Originally Posted by krystar

but parental citizenship doesn't transfer to child. in US it's place of birth. why else do u think all these asian and mexican illegals come here and want to get pregnant immediately? kid pops out on american soil, it's now american citizen and you're illegally immigrated but legal caretaker.

Yes, actually, in many cases it does transfer to a child. The child of Mexican parents born in the USA has dual nationality - Mexican by ancestry, American by birthplace. Dual nationality is recognized by the US government, the child is still considered a US citizen but may be a Mexican citizen as well.

If this wasn't the case, any American who happened to be travelling outside the USA (including diplomats and consular workers at American embassies in foreign countries) when they gave birth would be screwed, right? You happen to be in Canada when your kid is born and he's all of a sudden not an American? It just doesn't work that way - geography is not the only determinant, parental citizenship counts as well.

Cheers

d.

[dienstuhr]

Originally Posted by stomachmonkey

She was not born in the US so her automatic status is a bit grayer.

I don't know what the Passport process/paperwork in Canada entails but she may very well have renounced her citizenship while applying for it. Unlikely given the close relationship between the 2 countries but possible.

You need to talk to an attorney.

She didn't have to apply for citizenship; she was born in Canada so is automatically a citizen.

US citizenship can be renounced if a person is naturalized in another country and thereafter becomes a citizen of the other country, and expresses the intention to renounce US citizenship. It doesn't necessarily happen automatically, as the USA recognizes dual citizenship.

Cheers

d.

[krystar]

hmm i thought i read in my naturalization papers that US didn't recognize dual citizenships. my bad then

[1990C4S]

Originally Posted by Dottore

The US is the only country in the world AFAIK that taxes it's citizens on their worldwide income regardless of where they reside.

On the facts you give, I can see no reason to retain the US citizenship. It's a potential liability.

This is correct. There are huge issues now with fines and penalties for not filing paperwork (it appears to be a cash grab). The days of a nice easy and cheap retirement in the sunny south are over.

[stomachmonkey]

Originally Posted by dienstuhr

She didn't have to apply for citizenship; she was born in Canada so is automatically a citizen.

US citizenship can be renounced if a person is naturalized in another country and thereafter becomes a citizen of the other country, and expresses the intention to renounce US citizenship. It doesn't necessarily happen automatically, as the USA recognizes dual citizenship.

Cheers

d.

Well you started by saying she found out she "may be".

Given the potential implications I think it's worth a couple of dollars to consult an attorney rather than risk having to resort to defending herself to the IRS with, "some guys on a Porsche board told me....."

I've been audited before, not pleasant. Knowing what I know now I'd have gladly given an attorney whatever sum of money he/she wanted and possibly my first born to have avoided the experience all together.

Good luck.

[Superman]

Originally Posted by krystar

why else do u think all these asian and mexican illegals come here and want to get pregnant immediately? kid pops out on american soil, it's now american citizen and you're illegally immigrated but legal caretaker.

I'd be available to help out some of the more attractive asians and latinas with this.

[Rick Lee]

I thought there was an exemption of around $80-90k for income earned abroad by US citizens, no? Yes, it's still total BS. But if you plan to retire abroad and never return to the US, why not just cash out and leave? What can the IRS do to you in other countries if you don't plan to come back? If things in the US become such that I feel like I need to retire abroad, I'll not look back.

[dienstuhr]

Originally Posted by stomachmonkey

Well you started by saying she found out she "may be".

Good luck.

Sorry for any confusion - we know for sure that she is a Canadian citizen - she was born here. The question is whether she is a US citizen too, and if so, is it worthwhile to hang onto that.

Thanks,

d.

[dienstuhr]

Originally Posted by krystar

hmm i thought i read in my naturalization papers that US didn't recognize dual citizenships. my bad then

No worries -

US State Department Services Dual Nationality

[JJ 911SC]

Originally Posted by 1990C4S

... (it appears to be a cash grab)...

Use to finance Homeland Security which are now looking for all kind of reasons to keep their Empire going... U.S. Secretary of Homeland Security Janet Napolitano to visit Lincoln Park - NorthJersey.com