Guest mrb43 Posted October 24, 2017 Posted October 24, 2017 I am a full-time resident of California. I plan to retire in a few years and want to spend winter in Palm Springs and the remainder of the year in either Mexico or Brasil. Can anyone tell me how long I minimally need to reside in Palm Springs in order not to jeopardize my US Citizen status? Thank you guys. Quote
Members tassojunior Posted October 24, 2017 Members Posted October 24, 2017 You keep your US citizenship unless you take another one and the US knows (except Israel) and decides you renounced your US citizenship. The issue is for taxes. To be a non-resident for US taxes I think you have to be out of the US for 6 months. Quote
Members msclelovr Posted October 25, 2017 Members Posted October 25, 2017 I agree the issue will be taxes. But I thought that while you retain US citizenship you remain liable to pay US tax on your worldwide income, even if you do reside abroad for long periods. tassojunior 1 Quote
Members tassojunior Posted October 25, 2017 Members Posted October 25, 2017 3 hours ago, msclelovr said: I agree the issue will be taxes. But I thought that while you retain US citizenship you remain liable to pay US tax on your worldwide income, even if you do reside abroad for long periods. No, taxes don't go by citizenship but residence. Many US citizens are living abroad and don't pay US tax and many non-citizens resident here do pay tax. But I think to be a foreign resident you generally have to continually reside in that foreign country for at least six continuous months and meet a whole list of other often subjective criteria. Even if someone gets through that the exemption is pro-rated and many types of income are considered US-generated and taxable. They make it very hard for individuals. Not so much for corporations. Quote
Members msclelovr Posted October 25, 2017 Members Posted October 25, 2017 I don't mean to be quarrelsome @tassojunior, but I checked and my statement is correct. "If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gifttax returns and paying estimated tax are generally the same whether you are in theUnited States or abroad. Your worldwide income is subject to U.S. income tax, regardless of where you reside." Source: https://www.irs.gov/individuals/international-taxpayers/taxpayers-living-abroad tassojunior and torogen 2 Quote
Members tassojunior Posted October 25, 2017 Members Posted October 25, 2017 Thanks, that's news to me. I thought otherwise. Seems unfair to people living abroad, especially those who have to pay income tax where they live. Shame it's so easy for corporations. Quote
