Any expat Americans living abroad? What are you doing about citizenship for DC?

[skipperdoo]

DH is British and I am American. We live in England. Just curious about what others have done regarding dual citizenship for their children?

I am only hesitating to give DD American citizenship because it's been a massive burden to have to report my US taxes every year (I think only one of two countries in the world that requires this when you aren't a resident), as well as my UK taxes. From a time and paperwork perspective it is really draining and I'm not sure I want to subject DD to that when she is an adult.

She could also maybe decide for herself if she wants dual citizenship when she is older. I think the age limit to claim is 18.

Curious what others have done? Any advice/insight appreciated.

hard no!!!! because of the tax problem

The American tax stuff isn't just about reporting, the difference between the two systems can make it very difficult to hold stocks and shares in the UK as an American citizen and you can also end up paying capital gains to the US on the sale of your primary residence.

There are lots of articles on this

www.nytimes.com/2012/05/11/us/11iht-expats11.html

I am in a transatlantic family on both sides and my family members who are permanently settled in the UK have renounced.

I would recommend only seeking citizenship for your DD if you move back

I am so glad I never renounced when I was younger as we did decide to move to the US (born dual via mum). I never found the tax burden to be that terrible since the UK and US have a tax treatyI filed every year when I was in the UK but never owedI never made more than the foreign earned income exemption anyway. We now deal with it from the other side and it really hasn't been so bad despite owing capital gains from sale of UK property (sold while we were in the USA). There's so many loopholes in US tax law. Quite honestly, FATCA has been more work for us than taxes and I really wish the US government would reform the law.

While the absolute numbers of people renouncing citizenship has gone up, it's still quite a small proportion as the number of people who have other citizenship, make enough to make renunciation practical, and are sure they will never move back is not a huge group. Your DC might want to work or study in the US.

It’s my understanding that you don’t have a choice. If the birth situation meets the requirements for US citizenship (based on how much time you spent in the US to fulfill the physical presence requirement) then the child is automatically a USC and there’s nothing you can do about it. It’s not a choice. Later down the line the child can renounce citizenship when they are an adult.

I really really wish someone had warned me about the tax issues before I got the citizenship for my children. It is an absolute pain and means there are very few savings vehicles we can make use of for them (no JISA provider will take them on, it is difficult to open bank accounts, etc.) If I could do it again, I would hold off and let them apply for the citizenship when they are older if they want it.

@Linguaphile

I really really wish someone had warned me about the tax issues before I got the citizenship for my children. It is an absolute pain and means there are very few savings vehicles we can make use of for them (no JISA provider will take them on, it is difficult to open bank accounts, etc.) If I could do it again, I would hold off and let them apply for the citizenship when they are older if they want it.

The problem is that technically they have it - filing the CRBA on time is how you confirm it, and if you don't actually live in the USA, they've got no way of checking or tracking. A lot of the problems are due to FATCA and honestly, overly cautious banks (there is nothing in the tax code that prevents US citizens from having a JISA, banks just don't want to deal with the paperwork and disclosure).

If your child only has 1 citizen parent, you can get away with not filing but it's worth noting that If both parents are citizens, there's no residency requirements, and so if you all ever visit the US, USCIS will definitely notice and demand they get a US passport and use it for entry.

@knitnerd90 - what is the USCIS? If one had, say, an Italian and a US passport, but hadn’t renewed the US passport for years and travelled in on the Italian - technically I know that US citizens are supposed to enter on US passport, what would they actually do at passport control?

I agree with @BritWifeInUSA that you don't have a choice if you meet the resident requirements for passing on your citizenship ( from memory, 5 years living in the US, 2 years of which after you turned 14).
My understanding is that your DC are already citizens, you just haven't registered their birth, requested their ssn, etc. They can renounce when they're 18 and pay the fee if they choose.

I am in a few expat groups on FB and they are often asked and all very clear that your DC must travel to the US on a US passport. You are obliged to register their birth and apply for a passport for them if going to the States. And they will know at immigration because the DC would be traveling with you, a citizen parent.

Thank you for all the replies. I guess we will declare it and she can revoke if she chooses to when she is an adult!

To add, I have 3 DC and all are dual citizens. It can feel like a burden sometimes. We just went to renew their passports at huge cost for 3 plus a trip to London- we live in the North. DC passports can't be renewed online as parents have to swear an oath every time they are renewed that the DC are theirs and the photos are accurate, etc.

[quote lostinthestars]@knitnerd90 - what is the USCIS? If one had, say, an Italian and a US passport, but hadn’t renewed the US passport for years and travelled in on the Italian - technically I know that US citizens are supposed to enter on US passport, what would they actually do at passport control?[/quote]
US Customs & Immigration.

in practice it depends if they can tell. If you have a US birthplace, for example, and they spot it, they'll know (because of birthright citizenship) and you'll be questioned and at the very least told to renew. In theory, if the airline notices, they could refuse to board you. If there's no clue in your Italian passport then it's quite possible you could get away with it.

I don't want to overstate the odds--USCIS and the IRS just don't have the resources to track people overseas unless something comes to their attention. For example, there were a couple of years I forgot to file taxes when I was much younger. The IRS did nothing (I eventually back filed, and since I owed them nothing, it was all fine.)

@hennybeans

To add, I have 3 DC and all are dual citizens. It can feel like a burden sometimes. We just went to renew their passports at huge cost for 3 plus a trip to London- we live in the North. DC passports can't be renewed online as parents have to swear an oath every time they are renewed that the DC are theirs and the photos are accurate, etc.

Agreed--the expense and hassle can get to be a pain. But that's true for any dual citizenship. I suppose it could be worse, I know someone who's triple...

Hi, I know this is an old thread.

I'm American, DH British and we live in England. My son has his UK passport. My husband and son use an ESTA when we travel to the US.

My question is: do I have to apply for his USC from within the UK, or could I do it when we're visiting family in the US? We're planning to go for a month. I only thought of this as it's so difficult to get an appointment in London, but I'm sure it's not allowed for some reason.

You need to get a CRBA in the country a child was born in. You can't apply for one in the US.

Thanks @knitnerd90 that's what I thought

That's my understanding too. DH was dual and renounced.

Apologies Wolfmother, didn't know you'd added a question. Yes, you apply from the birth country