Dual Citizenship - UK and US

[gap1 21]

Hello,

I'm wrapping up my husband's naturalization packet (he's the Brit, I'm the American). We've done a great deal of research and everything we could find on both the US and UK government sites state that you can be a dual citizen of both countries and shouldn't have any issues.

We may want to move to the UK down the line, but thought it best that he becomes a US citizen so we don't have to worry about going back and forth between the countries in the future, worrying about status, etc. It just seems easier for him to have both passports.

Do you have any advice on this? Do you recommend it? I know that we would have to pay taxes in both countries should we move to the UK in a few years, but other than that I can't see any downside. I just thought I'd check to see if anyone had horror stories before we submit.

I know the oath doesn't override his UK citizenship, but a lot of the questions ask him to denounce it so I'm just making sure I understand things correctly.

[tim131 14]

I have read up on this. Its not a problem at all, some countries have a problem with dual citizenship, the USA or the UK are not one of these.

Just leave and enter the US on a US passport and enter and leave the UK (or a EU country - for ease) on a UK passport.

You'll be grand.

[Kiwinyc 62]

There are no issues. I am a NZ citizen with Australian and UK citizenship as well... Becoming a US citizen does open you up to having to pay US taxes on worldwide income which is the only downside I can see due to the extra paperwork in having to do US tax returns even if you are domiciled in another country. I travel solely on my NZ passport. Should I decide that I want to move permanently back to Australia or the UK (or elsewhere in the EU) i'd get an Australian or British passport and enter on that. As a visitor, my NZ passport is fine to use for all travel.

[Nich-Nick 3,354]

I know that we would have to pay taxes in both countries should we move to the UK in a few years, but other than that I can't see any downside.

You do not have to PAY taxes except to the country where you earn money. There is a tax treaty so you aren't taxed twice on the same income. If you live in the UK and earn no money in the US, then you pay no tax to the US unless you have a pretty high income.

.. Becoming a US citizen does open you up to having to pay US taxes on worldwide income ....

You don't have to PAY on worldwide income....you just have to REPORT it to the IRS and take the foreign income exclusion. Should you earn over the exclusion amount (close to $100,000/yr) the extra would go in as taxable income, but there is still a minimum amount of taxable income before you owe anything. (This year $13,900 for 2 people plus an extr $3900 per kid) So you could earn almost $114,000 abroad before paying would become a factor.

I did a full tax return recently for the lady who posted on here she was living and working in England and hadn't filed US taxes for 7 years. It took about 10 minutes and she was able to use it as a template to do the other six years. So not always super complicated to do a return that is basically a report with no tax liability. The year you move and work in both countries would be a pain.

[gap1 21]

Good to know, thanks for the advice!

[Big Papa Zone 93]

You do not have to PAY taxes except to the country where you earn money. There is a tax treaty so you aren't taxed twice on the same income. If you live in the UK and earn no money in the US, then you pay no tax to the US unless you have a pretty high income.

You don't have to PAY on worldwide income....you just have to REPORT it to the IRS and take the foreign income exclusion. Should you earn over the exclusion amount (close to $100,000/yr) the extra would go in as taxable income, but there is still a minimum amount of taxable income before you owe anything. (This year $13,900 for 2 people plus an extr $3900 per kid) So you could earn almost $114,000 abroad before paying would become a factor.

I did a full tax return recently for the lady who posted on here she was living and working in England and hadn't filed US taxes for 7 years. It took about 10 minutes and she was able to use it as a template to do the other six years. So not always super complicated to do a return that is basically a report with no tax liability. The year you move and work in both countries would be a pain.

I was SO gonna say this but you got here first!!!!!! I believe it's around $93,000 you can earn before you pay a cent to Uncle Sam. Zero down sides to dual nationality. Bring it on!

[Justine+David 218]

UK Yankee has a forum on tax advice if you're looking for more info too, but Nich-Nick (unsurprisingly ) is correct!

Your kids (if you have any) will get automatic citizenship for both, but their kids (assuming they don't marry a Briton) may not get it automatically. It's a bit confusing, but it seems like your kid would have to sometime before they have a kid live in the UK for 3 years and then their kids (your grandkids) would be able to have citizenship. David and I are looking into this as a possibility to do it when our non-existent as yet kids are growing up.

[usanumber1 0]

shorter time in airport with dual bonus if going to and fro!!!!!!!!!!!!!!!!!!

[Rebecca Jo 1,962]

UK Yankee has a forum on tax advice if you're looking for more info too, but Nich-Nick (unsurprisingly ) is correct!

Your kids (if you have any) will get automatic citizenship for both, but their kids (assuming they don't marry a Briton) may not get it automatically. It's a bit confusing, but it seems like your kid would have to sometime before they have a kid live in the UK for 3 years and then their kids (your grandkids) would be able to have citizenship. David and I are looking into this as a possibility to do it when our non-existent as yet kids are growing up.

kids born to Brits abroad will be British by descent even if they never return to the Uk. There's a registration process for that which you should do after they are born. If you move back home while they are under 18 and they live there continuously for three years, they can become full British citizens. Edited April 21, 2014 by Rebecca Jo

[Justine+David 218]

I thought I read that you could only pass British citizenship by descent once, though, i.e. our grandchildren wouldn't be eligible, just our kids.

[N-o-l-a 7,167]

I thought I read that you could only pass British citizenship by descent once, though, i.e. our grandchildren wouldn't be eligible, just our kids.

Yes, unless your children move back to England.

I'm a British citizen by descent, but was unable to pass that on to my daughter.

[Justine+David 218]

Do you know how long they have to be in England in order to pass along the citizenship? Just curious...