Are naturalized American citizens supposed to declare/pay taxes for any assets or income they have abroad?

Question

The person in question owns property and a sizable amount of cash invested in mutual funds and like instruments outisde of the U.S. Is she liable to pay taxes to the U.S. gov't or treasury?

The person is not a US expat residing abroad. She is a former Filipino who acquired US citizenship decades ago. The property and income I am referring to are inheritance from her parents in the Philippines.

Answer 1

Only to the extent a native born US citizen would have to do so.

The Federal government does not levy taxes on assets. States may levy taxes on assets, but those assets must be in the state.

Both the Federal government and state governments levy taxes on income. The federal government levy taxes on income of US citizens regardless of where the income was earned. However, the US also has treaties with many countries to avoid having the same income taxed both by the country in which it was earned and the US. While each treaty has its own provisions, in general a US citizen or permanent resident who earns income overseas is given a credit against US taxes on that income equal to the amount of tax paid to the country in which the income is earned.

US states may only tax income earned within the state.

Answer 2

If you're a citizen of the United States, you are obligated to pay taxes on income from whatever source, but are usually given credit for taxes paid on that income for the country where it was earned. For example, I own a few shares of stock in a Canadian company. A few dollars of dividends are paid each year. I pay taxes on that income, but deduct from that tax bill the taxes paid in Canada on the same dividends.

In the United States, one does not usually pay taxes on assets until they are sold. Thus, the mere ownership of assets overseas is not a taxable event.

Answer 3

Yes. All US citizens owe taxes on their world wide income. Depending on which country the US citizen (whether naturalized or native born) lives in, certain countries have treaties with the US and the treaties have specific provisions built in to to avoid having the individual tax payer run into the problem of being taxed twice.

Answer 4

type of: that's real that US voters are obligated to obey US/IRS tax regulations with reference to ALL of their income, from ALL sources in ALL places - which includes income earned at the same time as residing and dealing outside the country. it really is not precise to say that folk pay taxes to the IRS because there are numerous credit and exemptions accessible so the right result's often $0 owed to the IRS. In situations the position someone does owe the IRS, they oftentimes owe a lot a lot less in entire US taxes when compared with how a lot they might have paid in the adventure that they earned a similar quantity in america of a.

Answer 5

Yes. I am more than sure that foreigners who own American interestes and live abroad pay taxes.

Answer 6

Yes, the IRS wants you to declare/pay taxes for ANY income or assets.

Answer 7

I once worked for H&R block (tax prep company). They taught us that ALL WORLD-WIDE INCOME is taxable. So any money you earn, from any place in the world is taxable.

Answer 8

yes- proprty- if you own a rental or if you have sold your home in the other country after you have become naturalized, then you will pay tax.

Answer 9

Yes.

Answer 10

Sure