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  1. #1
    Thailand Expat
    Klondyke's Avatar
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    Americans Continue Giving Up Citizenship

    Americans Continue Giving Up Citizenship at Record Levels
    Reports Bambridge Accountants New York
    Aug 06, 2020

    NEW YORK, Aug. 6, 2020 /PRNewswire/ -- Americans are continuing to renounce their citizenship at the highest levels on record, according to research by the Enrolled Agents and accountants Bambridge Accountants New York.

    5,816 Americans gave up their citizenship in the first six months of 2020

    Showing a 1,210% increase on the prior six months to December 2019, where only 444 cases were recorded

    2,072 Americans gave up their citizenship in 2019 in total

    This is the second highest quarter on record; the record is 2,909 cases for the first quarter of 2020

    It seems that the pandemic has motivated U.S. expats to cut ties and avoid the current political climate and onerous tax reporting
    Americans must pay a $2,350 government fee to renounce their citizenship, and those based overseas must do so in person at the U.S. Embassy in their country.

    There are an estimated 9 million U.S. expats. The trend has been that there has been a steep decline over the last few years of U.S. citizens expatriating - the first six months of 2020 is a huge increase in the number of Americans renouncing their citizenship.

    Under the IRS rules (section 6039g), every three months the U.S. Government publishes the names of all Americans who give up their citizenship. The first six months for 2020 had 5,816 Americans renouncing their citizenship, far more than the total of the four quarters for 2019 (2,072 Americans renounced).

    Alistair Bambridge, partner at Bambridge Accountants New York, explains: "There has been a huge turnaround during coronavirus of U.S. expats renouncing, where the figures have been in steep decline since 2017.

    "The huge increase in U.S. expats renouncing from our experience is that the current pandemic has allowed individuals the time to review their ties to the U.S. and decide that the current political climate and annual US tax reporting is just too much to bear.

    "For U.S. citizens living abroad, they are still required to file U.S. tax returns each year, potentially pay U.S. tax and report all their foreign bank accounts, investments and pensions held outside the U.S. For many Americans this intrusion is too complicated, and they make the serious step of renouncing their citizenship as they do not plan to return to live in the U.S.

    "There has been a silver lining for U.S. expats that they have been able to claim the stimulus check of $1,200, and $500 for each child. For those individuals and families, the proposed second stimulus check will be very welcome once the HEALS Act is approved.

    Contact Alistair Bambridge, alistair@bambridgeaccountants.com, +1 646 956 5566.

    Bambridge Accountants New York is a New York-based firm specializing in U.S. expat tax, U.K expats, actors, other creatives in the U.S. and U.K.

    Bambridge Accountants- Creative Industry Tax Experts- UK, US, CANADA

    Americans Continue Giving Up Citizenship at Record Levels Reports Bambridge Accountants New York

  2. #2
    Thailand Expat misskit's Avatar
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    Interesting. Looking at the list of surnames it appears most were probably long time dual citizens and that had another citizenship existing where they lived when they renounced the US one. Tax dodging. Federal Register
    ::
    Quarterly Publication of Individuals, Who Have Chosen To Expatriate, as Required by Section 6039G

  3. #3
    last farang standing
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    Bit of a non story really. Singapore looses about 1200 citizens a year and per head of population far exceeds the USA. It would be interesting to see how many Russians. I suppose you'd just count the bodies floating down the Volga.

  4. #4
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    ^Isn't it the "whataboutism", what you many times complained about? Just curious...

  5. #5
    Thailand Expat Saint Willy's Avatar
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    Quote Originally Posted by misskit View Post
    Tax dodging.
    I would think so.

  6. #6
    Thailand Expat jabir's Avatar
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    6k is hardly a lot of people giving up their US citizenship, more than that believe the moon landing was a hoax and the earth is flat; at today's expectations if you post that Goofy masterminded 911 you would probably have a few subscribe to that as well.

  7. #7
    Excommunicated baldrick's Avatar
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    Quote Originally Posted by Klondyke View Post
    stimulus check of $1,200
    this was ludicrously small and only a one off - the second one has yet to be approved - considering most other first world countries paid a monthly boosting payment with minimal barriers to citizens to get it

    the USA is a sh1tshow

  8. #8
    I am not a cat
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    It is not as simple as paying a 2 thousand bucks fee. In addition you have to pay tax on all your possessions, including property you own. It can be very, very expensive.

  9. #9
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    Things are not going well in the US and it is a good idea to have a plan B but it is not time yet to give up on plan A except of a few that plan B is better than plan A.
    I am in the process of getting a Greek citizenship and by extension an EU citizenship, but the US government still writes me a substantial Social Security check every month, It will provide me with Medicare in less than two years, in addition my wife will receive a portion of my social security after my death . I also receive a pension from my tenure with my reade union, which my wife will continue getting 80% after my death, and a number of other benefits being a US citizen.
    I am not about to cut my nose off to spite my face. I will continue getting the best both systems have to offer to me.
    For a very few (5,000 our of 331,000,000) an minuscule insignificant percentage of the population it might make either economic, political or philosophical sense, But for the vast majority it does not.
    The sooner you fall behind, the more time you have to catch up.

  10. #10
    Thailand Expat misskit's Avatar
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    Americans Gave Up Citizenship in Record Numbers in 2020, Up Triple From 2019, Reports Tax Specialists Americans Overseas

    A record 6,705 Americans gave up their citizenship in 2020

    A 260% increase from 2019 when 2,577 Americans gave up their citizenship

    Renunciations triple despite U.S. consulates being closed for large parts of the year due to COVID-19

    This is the highest year on record; the previous record was 5,411 cases in 2016

    MORE Americans Gave Up Citizenship in Record Numbers in 2020, Up Triple From 2019, Reports Tax Specialists Americans Overseas

  11. #11
    Thailand Expat
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    Who can blame them? I personally know several.

  12. #12
    Thailand Expat VocalNeal's Avatar
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    Is that 6705 US citizens who have renounced their passport or just 6705 who have declared non-residency?

  13. #13
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    Revoking citizenship is quite different to non-residency- these would number, in my estimate, over a million Americans. They however still are assessed for US tax based on their worldwide income.
    Those who have revoked their citizenship are clearly not. That, along with moral and political dissidence, are the reason why most revokees have made that decision.

  14. #14
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    Quote Originally Posted by Paleo Robbie View Post
    Arent USA citizens income from abroad, also liable for USA taxes ?
    Yes, a matter of great annoyance to them.



    Quote Originally Posted by Klondyke View Post
    5,816 Americans gave up their citizenship in the first six months of 2020

    Showing a 1,210% increase on the prior six months to December 2019, where only 444 cases were recorded

    2,072 Americans gave up their citizenship in 2019 in total
    Out of 350 million . . . that's quite another anti-American thread . . . let's see what the Russian or Chinese numbers are, seeing as you're so very much into into whataboutism . . .

    Rosstat estimates 377,000 Russians left the country in 2017, the latest period for which figures are available and a six-year record.“The U.S. Department of Homeland Security counted six times more Russians arriving in 2017 than Rosstat recorded [leaving],” Proekt said. “Six times more people left Russia for 24 OECD countries, where foreign data is available, for 2016.”
    OECD, the Organization of Economic Cooperation and Development, groups 34 of the world’s leading economies.


    Meanwhile, the UN ranks Russia as having the third largest number of people living outside its borders after India and Mexico — 10.6 million.
    Official Data Vastly Underestimates Russian Emigration – Report

    That'd be a couple of million Russians running away from the diseased country . . . and China . . . whew, add millions more . . .

  15. #15
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    Of the famous people that I've read about...

    Eduardo Saverin, co-founder of Facebook, gave up his US citizenship some years ago. He has Brazilian citizenship (formerly dual US/ Brazilian) and got PR (by investment) in Singapore, I think. He didn't say outright, but reading between the lines, it was tax issues.

    Eduardo Saverin Renounces U.S. Citizenship Ahead Of Mega Facebook IPO

    Eric Schmidt, ex CEO of Google, is in the process of getting Cyprus citizenship by investment. Maybe we'll hear of him renouncing his US citizenship soon.

    Ex-Google CEO Eric Schmidt to become European citizen: report

  16. #16
    Hangin' Around cyrille's Avatar
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    Quote Originally Posted by panama hat View Post
    China . . . whew, add millions more . . .
    Yeah lots getting out while they still can to the UK, too.

  17. #17
    Thailand Expat Storekeeper's Avatar
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    Yawn ... 5K ... huge!

  18. #18
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    Yeh, it's trickle really- albeit growing. The ex-US citizens I know that made the decision had perfectly rational reasons for doing so- why be taxed in a country you never intend to live in again? We're talking of quite affluent people here. A couple also said that their growing disillusionment with US foreign policy contributed to their decision- why help pay for it?

  19. #19
    Thailand Expat tomcat's Avatar
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    ...a few thousand white folks (I suspect) choose a different colored passport...tens of thousands struggle to obtain a US passport...why is this activity of note?...

  20. #20
    Thailand Expat jabir's Avatar
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    Easy to play with numbers, but easier to figure what's really going on, how many people risk their lives to enter and share in the social, political and economic orders of Russia or China?

  21. #21
    CCBW Stumpy's Avatar
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    Quote Originally Posted by Paleo Robbie View Post
    Makes sense , why would an American who emigrated abroad and no desire to return to the USA want to keep paying tax in the USA ?
    Arent USA citizens income from abroad, also liable for USA taxes ?
    While I can understand the exodus I think the title is more for "shock value" versus why and definitely paints a picture the US is a bad place. I am with a few others in that many probably carry dual citizenships and why have to deal with both countries? Its not necessary and if you did not pay into the Social Security long enough or not enough why subject yourself to having to report financial information every year..

    Answering Paleo R's question, No you do not have to pay US taxes if you are not making income in the US. I am working here in Thailand for a US company but am paid in Thai baht and pay Thai taxes on my income earned here. I file US taxes for tax equalization purposes but never pay US taxes ( essentially cannot be taxed twice). I do have to file a FBAR form showing the max amount I had in my account during the year to the Crime Enforcement agency. Its not to tax me, its to monitor money laundering, terrorist or drug activities.

    For me, I would never surrender or relinquish my US citizenship. Absolutely no reason too. I paid into the social services system my entire life and will be able to apply for my full benefits when I reach one of the magic ages I chose to start getting my pension.

  22. #22
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    I'm not sure the Foreign Earned Income Exclusion is relevant for all countries . . . now NZ . . . yup. Overseas income is also taxable. Isn't the FITC similar i that it circumvents double taxation by taxing the differential between %x and %y?

    As an example, paying 18% tax in MY and having to declare and pay tax in NZ on the differential between NZ tax rate of 33% . . . 15%

  23. #23
    CCBW Stumpy's Avatar
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    While I am not a tax accountant by any means, in the US anything over $120k is subject to tax review but again when you do a tax equalization you never pay US taxes. At least I have not had to. My company pays for my Tax services.

    Now I will say that having my salary paid in USD in the US has a few perks as I am not at the mercy of the baht to dollar swing. But most companies compensate the delta loss with allowing it to be expensed or with other perks to square it up. Let's just say I do not lose any money. .

  24. #24
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    . . . grumble . . . you're far too happy at paying less tax than me.


    Well, I'm paying less than you now . . . until I get back to MY!!!

    Oh. Yea . . . not so good.

  25. #25
    CCBW Stumpy's Avatar
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    Quote Originally Posted by panama hat View Post
    grumble . . . you're far too happy at paying less tax than me.
    Oh yeah. I am living the proverbial dream. Tax rate less. Differential compensated for and with Covid work 100% remote with a GREAT Wi-Fi service by the pool.

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