Many U.S. citizens who have now taken up residence in another nation are hit with taxes from both their host nation and their home nation, Greenback Expat Tax Services explained in a piece accompanying their survey conclusions.
“The burden of filing U.S. taxes is the top reason expats want to ditch U.S. citizenship, according to the survey, which polled 3,200 American expats living in 121 countries,” CNBC reported.
WATCH: HOW WAS JURY SELECTION HANDLED IN TRUMP'S TRIAL?
Greenback stressed that the U.S. has tried to ease the tax burden of Americans abroad by putting in efforts to avoid double taxation. Although, U.S. expats still have to file tax returns with the IRS every year, and many end up paying U.S. taxes.
WATCH: "WE WILL OPEN YOU UP LIKE A SOFT PEANUT"
“Because the majority of the world’s nations use a system of residence-based taxation, most US expats are required to pay taxes in their host country,” Greenback clarified. “Despite this, most also have to pay taxes to the US government on the same income due to the US’s practice of citizenship-based taxation.”
A LOOK INSIDE DEMOCRATS' PLAN TO WIN BACK THE HOUSE WITH RECORD INVESTMENT
“The US also has rules in place that require Americans to report on foreign financial accounts,” Greenback went on. “The rules were designed to safeguard against tax cheats hiding money in offshore accounts. However, these regulations disproportionately impact expats since they are more likely to have overseas accounts.”
DEMS' LAST-MINUTE BID TO SAVE SEATS AMID SOUTHERN BORDER TURMOIL!
The survey discovered that millions of Americans living abroad were unfamiliar with America’s financial reporting requirements, which could put them at risk of falling into trouble with the IRS. Another worrying aspect of the poll revealed that 86% of American expats “feel like their concerns are less likely to be addressed by the US government than US citizens living in the USA,” a finding that Greenback co-founder David McKeegan said “struck” him most.
FOX NEWS COLUMNIST TEARS APART MTG'S "RECKLESS AGENDA"
As of 2020, there were up to nine million Americans living abroad, according to U.S. State Department estimates. CNBC noted that just under 2,500 people revoked their U.S. citizenship in 2021, much fewer than the record-breaking year in 2020 that saw almost 7,000 Americans decide to lose their citizenship.
ICE BLUNDER: AFGHAN NATIONAL SUSPECTED OF TERROR TIES ESCAPES U.S. TRACKING PROGRAM IN DAYS...
Survey respondents mentioned taxes as the top reason for considering citizenship renunciation—pursued by a variety of other personal and political factors.
Further impacting the results is the Covid-19 pandemic. it impacts how expats work and how they feel about how the US handled the pandemic.