Should both h&w take citizenship or just one of them

[samy123]

I am sure this question has crossed your mind - at least for some of you.

My wife and I are indian nationals eligible for citizenship. we plan to relocate back to india. Any ideas on the advantages/disadvantages of only one of us taking us citizenship as against both of us?

Any info on taxes will also be helpful.

This forum was very useful during GC times...and hoping I get some good info from the experts on this forum.

samy123

 

[N400Applier]

I am sure this question has crossed your mind - at least for some of you.

My wife and I are indian nationals eligible for citizenship. we plan to relocate back to india. Any ideas on the advantages/disadvantages of only one of us taking us citizenship as against both of us?

Any info on taxes will also be helpful.

This forum was very useful during GC times...and hoping I get some good info from the experts on this forum.

samy123

If both are eligible then apply for both. If only one has Citizenship and the other GC then when the couple relocate to India then the spouse with the GC will lose the GC at some point in the future. As far as paying taxes in US it is always better for both spouses to be Citizen or GC holders at the same time.

 

[boatbod]

If you are relocating to India on a permanent basis, why go to the trouble of getting US citizenship? All it means is you have to pay tax to Uncle Sam every year. If you think you may return to the US at some point, you both probably want to go for citizenship, otherwise you'll have to go through all the GC hassles for the spouse that wasn't a citizen. (Remember that GC holders must still pay tax to IRS, so no savings there.)

 

[N400Applier]

If you are relocating to India on a permanent basis, why go to the trouble of getting US citizenship? All it means is you have to pay tax to Uncle Sam every year. If you think you may return to the US at some point, you both probably want to go for citizenship, otherwise you'll have to go through all the GC hassles for the spouse that wasn't a citizen. (Remember that GC holders must still pay tax to IRS, so no savings there.)

boatbod the reason most people relocating back to their home countries apply for US Citizenship is that they "may" want to come back sometime in the future. If you have a GC and you leave US for extended periods of time you will eventually lose your GC but there is no way you can lose your Citizenship if you live outside USA.

My advice: Apply for US Citizenship, talk to an accountant here and then relocate after getting US Citizenship.

 

[ApplyinMidwest]

Tax Implication

If your income in the whole fiscal year (foreign and domestic) is less than $8,450.00, then you do not have to file federal tax return. This apply for the year ending 2006. It will probably be roughly the same number for 2007. For more details visit IRS website. Some countries standard of living is so low that you might earn below the threshold.

Do this test to see if you qualify:
http://www.irs.gov/individuals/article/0,,id=96623,00.html.

Question: Theoritically speaking, if one were to work in a foreign country, what to submit with tax return to IRS? Foreign w-4? Is there even such a thing? and how do IRS know how much you earn in foreign country? In the U.S, it's easy because they have your income data from your U.S employer, but in a foreign country?

 

[rwsh]

estate taxes (death duties)

Although this may or may not apply to you (depends on how rich you are or might be in the future ), note that US citizens get 100% spousal exemption (marital deduction) from estate tax in the event that one spouse dies. This exemption is NOT granted to permanent residents. Used to, then the law was changed in the 80s.

 

[boatbod]

boatbod the reason most people relocating back to their home countries apply for US Citizenship is that they "may" want to come back sometime in the future.

I guess thats why I said "If you think you might come back..."

Also I would imagine it'd be a good thing if you have kids while abroad - definitely automatic USC, but do they also get Indian citizenship?

 

[samy123]

This is what I have learnt so far - in talking to people and reading on the web.

As far as I know India and the US have a taxation treaty so you don't get taxed twice. As a US Citizen living in India and earning in India you have to pay taxes in India. For any income in the US you have to pay taxes in US. The most important thing is that US Citizes are requires to file tax returns - and declare that they've already paid taxes in another country. There is equivalent of a W-4 that can be attached to the return. Also, there is a IRS form for foreign earned income.

I don't know what if any issues there are with regards to owning real-estate, investing in markets out there and may be setting up a business...

If you know of someone in this position and has moved back...that may be a good source. I would certainly be interested in talking to someone who has been thru this....Any references will be appreciated.

samy123

 

[Flydog]

Of course, questions of US citizenship should be answered not just in economic terms, but in the spirit of the constitution and of the oath (well, what we can understand of the oath - has anyone ever seen the word abjure used anywhere but the naturalization oath).

When my wife and I decided to apply for naturalization, we had long discussions - which included reading the constitutions and talking about the oath (which, in turn, included looking up the word "abjure" in a dictionary (and surprisingly finding that it is the perfect word to use)). These discussions were only glancingly economic in nature. While waiting for the interview, we used out "study time" not just to memorize the answers to the 96 questions, but to get a better idea of American History (I read de Tocqueville's "Democracy in America", for example).

I really don't suggest that you bring up any of the discussions in this thread during your naturalization interview

 

[boatbod]

I really don't suggest that you bring up any of the discussions in this thread during your naturalization interview

Oh, I don't know, maybe it could stimulate some good discussion of how to respond to a NOID!