Tax consequences of becoming a US citizen

[Tim May]

On Tuesday, July 9, 2002, at 06:30  PM, Anonymous wrote:

> On 9 Jul 2002 at 14:02, Tim May wrote:
>> Unless one's stay is a short one (see below), income or other
>> money earned while in the U.S. (and maybe earned outside the
>> U.S. if the IRS can make a nexus case) is taxable.
>
> The question really is:  Suppose one becomes a US citizen, and
> then resides outside the US.  Then is money on earned on assets
> outside the US taxable by US authorities.

Yes, but under expat tax rates. Cf. the IRS site, tax regs, etc. for 
details.

Something like the first $70K per year of income is not subject to taxes.

Companies routinely protect their overseas employees by tax-protecting 
their offshore earnings. (And the tax protection is protected, so the 
companies protect _that_, etc. Fortunately, simple formulas for infinite 
sequence limits are available.)

As this is not a tax forum, and I'm not going to do research for others, 
consult the Web. Google is your friend.


--Tim May
"As my father told me long ago, the objective is not to convince someone
  with your arguments but to provide the arguments with which he later
  convinces himself." -- David Friedman