U.S. Expats Balk at Tax Law: American Citizen Renunciations Are Soaring

Re:U.S. Expats Balk at Tax Law: American Citizen Renunciatio... by patio11 on Tuesday August 13, 2013 @07:06AM (#6205032)

Yes, but there's still the vast minefield that is non-earned-income money. This is a substantial amount in many European social democracies.

If you tell me what particular public benefit you're talking about and what country it is from, I can find you an authoritative citation for this, but I am almost certain that the type of benefit you are thinking of is not income for the purposes of US tax law.

Publication 525, "Do not include in your income payments made from a public welfare fund on the basis of need [except] if they are compensation for services or obtained fraudulently."

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Re:U.S. Expats Balk at Tax Law: American Citizen Renunciatio... by gsb on Tuesday August 13, 2013 @09:08AM (#6205427)

Possibly by non-earned-income he means passive income.

You are not allowed to exclude passive income on form(s) 2555. It is foreign earned-income, not foreign-earned income.

Although foreign retirement benefits are also taxable to the US for many countries.

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