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Is Renouncing American Citizenship the Right Decision for You?

If you want to renounce American citizenship, there are several things you need to know about what this decision entails. Renouncing your citizenship in the U.S. should never be taken lightly, as this can have a significant impact on your life and the rights you have in this country. Because of this, you will need to consider the unique situations where this may be an applicable decision. Here is everything you need to know about what happens if you renounce your U.S. citizenship and when this may be the right decision.

Renouncing American Citizenship: What Does it Mean?

Renouncing American citizenship is a serious decision, which is why it is not incredibly common. When you do this, you are giving up all of the benefits that come with living in the United States as a citizen.

There are also serious concerns related to this decision, such as finding yourself stateless. Because of this, anyone who wants to renounce their citizenship needs to begin the process of becoming a citizen in another country to avoid being stateless.

Renouncing your American citizenship can also have implications regarding future immigration and potential travel to the United States. If you renounce your citizenship, you can still visit in most situations as long as no crime is involved. However, you need to make sure you go through the correct renunciation process to avoid immigration problems or leftover taxes.

Renouncing your citizenship in the U.S. will also have an impact on your loved ones depending on their relationship to you. For instance, children will maintain their citizenship status, but you may run into issues when it comes to their ability to inherit assets from you. This is also a concern for spouses who maintain their U.S. citizenship.

Consequences of Renouncing U.S. Citizenship

Before you move forward with renouncing American citizenship, it is crucial that you understand the potential consequences of this decision. When you renounce your citizenship, you are giving up many rights, which can have an impact on your future plans and abilities, such as:

  • Losing the right to vote in U.S. elections.
  • Losing government protection.
  • Losing assistance while traveling overseas.
  • Losing access to federal jobs.
  • Losing citizenship for children born abroad.
  • Losing the ability to travel unrestricted in and out of the United States.

Renouncing is also an irrevocable decision, so it is very likely that this will be permanent once you have gone through the entire process. Only in situations where there is a successful administrative or judicial appeal can renunciation be canceled or reversed.

U.S. Citizenship Renunciation Process

Just like any other part of immigration law in the United States, there is a specific process to follow when you are announcing American citizenship. If you believe this is a good decision for your situation, you should also consider hiring an immigration attorney to ensure you follow all of these steps correctly.

  • Obtain new citizenship: To avoid being stateless when you renounce your citizenship, you need to secure a second passport. This can take some time, so you need to make sure you have done this before you start the process of renunciation.
  • File: There are several different forms you will need to fill out to request renunciation, including providing tax documents. It is essential that you have been tax-compliant over the past five years to avoid running into issues during this step of the process.
  • Attend a U.S. embassy or consulate appointment: You will need to schedule an in-person appointment at either a consulate outside of the U.S. or a U.S. Embassy. When you do this you will need to be prepared to cover the cost to renounce U.S. citizenship, which is $2350.
  • Submit a final tax return: If you have received approval from the U.S. Department of State, the final step is to submit a final tax return. When you do this, you will need to include Form 8854 to show that you have been compliant with U.S. tax laws.

An immigration attorney can help you throughout this process, ensuring everything is done correctly. Tax issues are the most common problems people run into during renunciation, which can come with serious financial concerns. It is also essential to follow these steps exactly so that you won’t run into immigration issues later on if you want to continue visiting the U.S.

Acceptable Reasons For Renouncing U.S. Citizenship

If you wish to go forward with the U.S. citizenship renunciation process, there are several acceptable reasons for choosing to do this, such as:

  • Identity and belonging: You may find that your personal identity does not align with the United States anymore, especially if you have spent time abroad or have differing political opinions. People may also struggle to feel as though they belong in the United States if they have strong cultural or social ties to other countries.
  • Double taxation: The tax laws in the United States have strict requirements for U.S. citizens who are living abroad. Because of this, you may wish to renounce American citizenship to avoid having to report worldwide income or file annual tax returns.
  • Tax obligations: Aside from basic tax laws that apply to U.S. citizens living abroad, there are also many tax obligations. This includes the exit tax, which can become a significant financial burden, which is why some may choose renunciation.
  • Lifestyle: If you are a dual citizen and wish to remain in a country other than the U.S., you may want to renounce your citizenship. This can help to simplify your financial life as well as reduce immigration issues and your obligations as a U.S. citizen.

Other reasons why someone may want to take this step are if they are becoming a naturalized citizen in another country, taking an oath of allegiance to another country, or joining another country’s armed services.

Hire an Immigration Attorney Today

Do you want to start the process of renouncing American citizenship? Contact us today at U.S. Immigration Law Counsel at 800-666-4996 to speak with an immigration attorney about your situation. We will deal with the government, so you don’t have to!

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