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Date: Wed, 16 May 2007 06:46:24 -0700 (PDT)
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Hi, we are a married couple, I'm American and my wife is Swiss and we
have one child. We are debating whether my wife should apply for US
citizenship. We may move to Switzerland in the next couple of years and
I'm wondering what the US tax consequences might be.
>From what I
understand, I have to file US taxes regardless of where I work, since
I'm a US citizen. Right now we always file jointly since my wife isn't
working yet and it's a big tax break. However, this will change in the
future. I also understand that usually the first $80,000 is exempt from
US tax, but this could change. At one time they came close to
eliminating this 'tax break' for ex-pats.
Assuming we moved to
Switzerland, can we file US taxes separately (just for me basically)
and only have my income possibly subject to US taxes? Or will her
income have to be declared anyway? How does our child factor into this,
if at all? Can the child be declared as a full dependent in this case?
In
the worst case, would we ever be double taxed? Or would we basically
end up paying a total tax that is the highest of the two countries?
If I have to declare my wife's income no matter what, then basically it doesn't matter whether she is a US citizen or not.
Also, can my wife apply for US citizenship even if we move to Switzerland? She already meets the criteria now.
I'd like to hear from people who have been or in this situation.
Thanks,
Dan
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Received on Wed May 16 2007 - 08:05:06 PDT
