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Friday, 6 March 2020

US Income Tax and UK Service children born in the USA

A DIN has been published which highlights the issue of UK Service Children born in the USA (and therefore holding dual nationality) being liable for US income tax when they reach the age of 18.  
The Armed Forces Covenant Team have had a number of enquiries from former Service Personnel whose adult children are being chased for back taxes by the IRS.   The DIN explains the problem and highlights the options open to people in this situation.  All UK personnel serving in the US are briefed about this and the HIVEs and Family Federations will also disseminate information.  One option is for individuals to renounce (at no cost) their US citizenship at the age of 18.​