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Lv 5
J.J. asked in Politics & GovernmentImmigration · 8 years ago

Renouncing US Citizenship?

I was born and raised in Boston and have a hard-earned modest pension as a career soldier. I am due to get another federal pension in about 8 years and social security two years later. My question is are these US Government pensions taxable if you seek citizenship elsewhere and renounce your US Citizenship?


Both my parents are from Ireland so I automatically an Irish citizen- I would not be a stateless person

4 Answers

  • 8 years ago
    Favorite Answer

    Social Security retirement benefits are taxable income. They remain taxable. As for the military & other govt pensions, you need to study details on the particular pension's requirements or consult a good tax attorney with international expertise, especially expertise with US expatriates. Expat or ex-citizen, taxable US income remains taxable US income. Income which is not US-sourced is not US-taxable to non-US citizens.

    Since you are an Irish citizen (make sure you have your Irish passport to prove it - Ireland's laws have changed in recent years & could change again), check Irish tax laws to see how they tax foreign income to resident Irish citizens.

  • 8 years ago

    First let me start of to tell you that only an emotionally or intellectually extremely disturbed or even mentally retarded person would even consider renouncing their US citizenship. There is no advantage to this at all until you come to a point where you have an income in the 7 digits or higher, but if you make that kind of money, shouldn't you run through life with a smile on your face? If you could sell your US citizenship, and oil sheik would easily give you $1 million for it, without blinking an eye.

    Now to your question: the US and Ireland have a bilateral treaty. If you pay taxes on your income in the U.S., Ireland won't tax you on it, and if you were not a citizen of the U.S. anymore, then you'd have to pay income taxes in Ireland on this, which is higher than in the United States. So even if you have an income of . . . let's say $1,000,000 per annum, then you either pay Uncle Sam or you pay the Irish government their share.

    If you want tax free, seek residency in Monaco, the Cayman Islands, or Luxembourg. Once you make about a million a year, that's the place to be.

    Source(s): An immigrant from Europe, I live in the charming old mission town San Buenaventura and work as an attorney in Santa Barbara, California.
  • Raelyn
    Lv 7
    8 years ago

    Renouncing US citizenship to escape taxes works only if you reside outside the US. Not sure what effect renunciation of US citizenship would have on your federal pension, but you will lose your military pension, and it might affect your Social Security payments as you would become a Nonresident Alien subject to the conditions of a bilateral agreement between the US and your country of residence.

  • Anonymous
    8 years ago

    then you go to Ireland get citizenship papers and passport then you renounce at the US consulate

    nothing automatic about citizenship

    the tax question I cant answer

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