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In reply to the discussion: More are renouncing U.S. citizenship as IRS cracks down [View all]14thColony
(1,515 posts)My fiancee was born in Europe but with US citizenship. When she turned 18 she also got citizenship in her home country. She went to university in Europe, lives in Europe, and has a career in Europe with a European company. She has no SSN because they were not issued at birth when she was born. She's only visited the US about 10 times and has never lived there.
Yet she is still obligated to pay US income tax just like she was resident in the US, while still paying the income tax of the country in which she works and lives. Yes, there are agreements between the US and other countries to give credit for each others' taxes, and the IRS doesn't tax the first 95K or so of income, but nonetheless the US is one of the few countries in the world (only?) that taxes its citizens where ever they are, regardless of whether or not they've ever even set foot in the country. Besides her, I personally know of four other people in the same situation, and I don't exactly have a large network of acquantances and friends where I am.