@Steve ******

I checked earlier and the exclusion was $120,000 in 2023. Getting another passport is the first step and unless you have a familial relationship with another country it could require expensive investments in that country to get a passport. Getting a Thai passport has its own difficulties.

@Steve ******

I didn’t say it wasn’t expensive but I was curious about the claim that they would calculate your future taxes for the rest of your life.

@Steve ******

All the information on this that I find is similar to this

How much does it cost to renounce US citizenship in 2023?

To renounce your citizenship, you must have been tax compliant for five years and subsequently pay any outstanding tax bills that you may owe.

Additionally, you must prove by the following June 15th that you’re compliant for the five years before renunciation. So, on the date of the appointment, you may be behind, but you have until the following June 15th to meet the threshold to be deemed in compliance. If you’d like to simulate the renunciation process, connect with a US expat tax expert.

Those hoping to renounce their US citizenship must also pay a non-refundable renunciation fee of $2,350 for administrative processing.2

Certain expats, classified as “covered expatriates,” are also subject to an additional expatriation tax, or exit tax. Generally, a covered expatriate is somebody who either:

Has had an average income tax of more than $178,000 over the past five years before their renunciation date,4 OR

Owns more than $2 million in worldwide assets, OR

Fails to certify that they have been compliant with their tax returns over the past five years.

Most often, covered expatriates subject to the exit tax are taxed on the fair market value of their assets at a long-term capital gains rate of 23.8% (excluding the first $767,000).5 The exit tax, in other words, is imposed as if you’d sold all of your worldwide assets on the last day that you held US citizenship. There are exceptions to this rule, but it can be difficult to predict which assets will classify as such, and how they will be taxed.

@Albert ******

That sounds like a good plan. America is still, in my opinion, the best place for an education, particularly higher education, and the best place to build a business and career and to make and save money. Access to that is the value you have place on citizenship and that’s what you are taxes are paying for even if it is a different policy than other countries.

@Albert ******

So you are keeping citizenship and paying taxes so you can easily visit the US? That’s your choice and may be expensive. However I don’t know what alternative passports are available to you. We know Thai citizenship is pretty hard to get.

@Albert ******

Where were your kids born? If they were born outside the US then I know they can get a US passport but I didn’t think it was required.

@Albert ******

I agree that this is unique to US citizens and seems absurd in your situation but look at the flip side. You have calculated, after all these years, that there is value to keeping US citizenship for you and your children.

@Albert ******

I think the first $120,000 of foreign income is excluded

@Brian *******

That’s what I said but your grammar and sentence structure is clearer.

@Marco ********

They do tax 85% of our Social Security. When SS was running out of money in the early 1980’s the fixed the problem by gradually raising the full retirement age from 65 to 67 and they started taxing 85% of the benefits. Social Security is running out of money again so they are thinking about how to fix it again.