Do I Have To Pay More Tax After Becoming A US Citizen?

After you become a US citizen, you will have access to many public services and opportunities offered by this nation. However, you will also have various obligations as a new citizen, and for many prospective immigrants, the most notable of these obligations involves income tax. If you want to become a US citizen, you should get a sense of how your tax obligations might change after you gain citizenship. This ensures that there are no unwelcome surprises down the road.

You can discuss the various changes you might experience as a US citizen with your immigration attorney. These legal professionals can help you strive for the best possible results while also helping you understand this legal process in considerable detail. When you’re ready to move forward, your immigration attorney can guide you towards citizenship in a confident, efficient, and expedited manner.

How Taxes Work With US Citizenship 

In your current nation, you might be used to being taxed based on residency and not based on citizenship. For example, you might be a Mexican citizen – but you don’t actually have to file a tax return in Mexico if you didn’t work in Mexico throughout the last fiscal year. You would instead file taxes in whichever country you lived and worked in during that period.

But if you become a United States citizen, you are taxed based on your new citizenship (1). It doesn’t matter where you have lived over the past few years – as long as you hold a US citizenship, you will need to file a tax return with the IRS. This concept might seem completely foreign to a lot of people, and it’s an extremely rare way of doing things in the modern world. In fact only one other country – Eritrea – follows the same system.

That said, this new system shouldn’t really affect you unless you plan on obtaining US citizenship while doing business elsewhere in the globe. If you intend to reside and work in the United States, you’ll only need to file your taxes with one nation – the USA.

How Much Tax Do US Residents Pay? 

Residents of the United States pay relatively low taxes compared to other developed nations. According to the Tax Foundation, Americans paid less tax than approximately 75% of these developed nations (2). There are many countries that have higher rates of income tax, including Australia, Austria, and Norway. However, there are a few nations with lower top tax rates, including Canada.

Enlist the Help of a Qualified Attorney Today 

For help from a skilled Palm Beach County immigration attorney, look no further than Devore Law Group. Over the years, we have assisted numerous immigrants in their quest to gain citizenship, and we know you might have many questions about how this process works. Book a consultation at your earliest convenience, and we can answer any questions you might have while guiding you towards a positive outcome. Reach out today.