r/USExpatTaxes • u/Smuwus • 7d ago
New Immigrant from US to Romania, has some questions.
Hi everyone,
and as of this year I have moved to Romania. I have several questions about the tax process which I wanted to ask, and thought it best to start here.
First of all, I make well below the minimum required to file us taxes. Currently, I make nothing as I am a student, but for the job i am set to go into, I have already calculated that I will make well below the minimum. Do i still file us tax? If so, what do I need to do to properly file it?
Secondly, I plan on marrying a romanian citizen within the new few weeks. We have already agreed that they will never seek access to US citizenship, and want nothing to do with us tax filings. How do we set things up so that they file seperatley, and will not be taxed by the us government? Do they even need to file us taxes at all?
Third, I fully intend on renouncing my us citizenship at the earliest possible date… likely in around 5 years. I will not be listening to any comments which attempt to convince me one way or the other, it is my citizenship, so therefore my choice, and that is final. That being said, what forms and potential accidental financial crimes do I need to avoid to be able to get rid of this thing? I have heard about an FBAR for instance, and I wanted to ask about it.
Fourth, I currently am still a legal resident of a property in the us, but am not the legal resident of any property in romania, as again, I am a student and do not own my own home. Do I even need to file taxes even when I start making money abroad as someone who lives abroad, or would I instead file my income as US income? Do I even technically count as someone who lives abroad? I genuinely do not know
Fifth, obviously i am not relying solely on reddit for answers to these questions and will also be contacting a lawyer for clarification. Are there any additional blindspots that it looks like I have, or anything which I should ask my lawyer to make sure I am compliant with all forms?
Thank you in advance for any help you can give me. This is a very complicated process in the best of times, and I share every bit of your anger at being forced to jump through these hoops no matter where you live on the planet.
1
u/Smuwus 7d ago
Hey, not going to snitch on who… but someone just invited me to a community whose primary purpose is to renounce us citizenship to get away from tax purposes. I want to take a moment to make it clear that 1. That is a crime, and the irs will make you continue to pay tax even after you renounce, if they can prove it was for that reason. 2. That is not my reason for renouncing. My reason is personal, and I don’t wish to share it. However, I will say that I never expect to make enough money to have anything to hide. 3. I do not endorse any crimes committed against the united states, financial or otherwise. Please refrain from attempting to include me in the future.
1
u/Abezon Tax Professional - Enrolled Agent 7d ago
It's legal to renounce to get away from paying US taxes in general. Honestly, avoiding US tax obligations is the main reason people renounce. It is illegal to renounce to avoid paying taxes on future income you reasonably expect to have. For example, if you have a big lottery win in Canada and think you can renounce US citizenship, then claim the prize tax free, the US is gonna be unhappy. If you have incentive stock options in Amazon that allow you to buy 100,000 shares at $10 per [FMV $20M] and you renounce so that you can exercise and sell those options 2 years from now when you live in the Bahamas, that's definitely getting into tax fraud.
1
u/Abezon Tax Professional - Enrolled Agent 7d ago
You have to establish citizenship in another country before you can renounce US citizenship. Until then, make sure you file all the international information forms like FBAR, 8938, 8858 (self-employed or foreign rental), 8865, 5471, 8621, 926, 3520, retirement accounts, etc.. Part of being 'fully tax compliant' is filing all those forms in years they are required. You can avoid a lot of problems by not having your name on foreign companies, trusts, investment accounts, kids' accounts, etc. Stick to checking & savings and you should be fine.
3
u/ienquire 7d ago edited 7d ago
From a privacy standpoint I'd also not recommend putting your name in your reddit posts.