(AbsoluteNews.com) – According to a new report, a record number of people are giving up their US citizenship. Many people cite political differences as the reason, but there’s another reason why: taxes.
There’s an expectation when you move to another country that you’ll be subject to their taxes, but Americans get hit twice. When US citizens move abroad, they have to pay the money required by the government of their new home AND they still have to file returns with the IRS in Washington, DC.
According to the IRS, American citizens’ and green card holders’ “worldwide income” is subject to income tax no matter where they live. CNN reports many citizens living overseas think it’s “just too much,” so they’re relinquishing their citizenship.
Americans are renouncing their U.S. citizenship in record numbers in 2020, according to a report by Bambridge Accountants New York. https://t.co/siyF1jvxJF
— Miami Herald (@MiamiHerald) August 10, 2020
A new report by Bambridge Accountants New York found 5,816 Americans renounced their citizenship in the first six months of 2020 compared to 444 in the prior six months of 2019. The increase is 1,210% from the last half-year in 2019 to the first half of 2020. The total for all of 2019 was 2,072.
This news may make many shake their heads and wonder why the US is forcing Americans who live outside of the country to still pay taxes? It seems as if that would create an unnecessary hardship. But, it’s important to keep in mind that their status as taxpayers also means they’re able to receive stimulus payments just like they would if they lived here. So, it’s not one-sided.
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