Who is an American Citizen?

WHO IS AN AMERICAN CITIZEN?
According to a recent article in American in Britain, it may be easier than you think to acquire US citizenship, even “accidentally”. Residence has nothing to do with it.

• If you were born in the United States, you are automatically a US citizen, whether your parents were there lawfully or not or were in the country only temporarily, & whether or not you are (and regard yourself as) the citizen of another country, perhaps where your parents are from & you have always lived. (An exception is made in the case of children of parents with diplomatic immunity who have “green card status”, which is withdrawn when the parent leaves the US.)
• If you were born outside the US & both your parents are US citizens, you will be an American citizen if either parent resided in the US or a US possession prior to your birth; there is no set minimum period of residence.
• If you were born outside the US & only one parent is an American citizen, it will depend on when you were born:

1. After November 1986, your parent must have been physically present in the US for periods totalling 5 years, of which 2 years must have been after his/her 14th birthday
2. Between January 1941 & November 1986, your parent must have been present in the US for 10 years, 5 of them after a “specified age”, either 16 or 14.
3. Between May 1934 & January 1941, your US citizen parent will only have to have been present in the US at any time prior to your birth.

• If your parent or grandparent becomes a citizen of another country, they do not lose their US citizenship & hence you will have US citizenship if the above provisions are fulfilled. This provision is retroactive, covering those years when “incorrect” consular advice was given out.
• If one of your parents becomes a US citizen before you are 18 & you live in the US in the legal & physical custody of that parent & have a “green card”, you will automatically acquire US citizenship.

What is the bottom line to this? American citizens are required to file tax returns & pay tax on their worldwide income, regardless of residence. So keep this in mind as April 15th, the deadline for filing with the IRS, approaches. Even if you owe nothing, if you earn more than a certain
amount, depending on your filing status, you are required to file a tax return. In 2008, this was:

Single, under 65 $ 8,950
65 or older 10,300
Married, filing jointly (both <65) 17,900
one spouse >65 18,950
both >65 20,000
Married, filing separately (any age) 3,500

There are also provisions for anyone regarded as Head of House hold or Qualifying Widow(er) with dependent child – see the IRS instructions for definitions & minimum amounts. According to another article, the IRS is increasingly looking abroad for US citizens or green card holders who have never filed, or have stopped filing, tax returns.

US citizens are also required to enter the US on an American passport. A citizen of another country may find him/herself in difficulties when s/he tries to enter the US on a non-US passport that shows the holder’s birthplace to be the United States.

TAX INFORMATION IN TWO PAGES!

The IRS has issued a useful two-page Publication 4732 summarizing federal tax information needed by US taxpayers living abroad. It gives contact information and URLs, as well as a list of other IRS publications covering various aspects of federal taxation in fuller detail. Available at:
www.irs.gov (under Publications & Notices).