Survey data revealed an increasing dissatisfaction among American expatriates with the tax obligations imposed on US citizens living abroad.
— Mike Wallace, CEO of Greenback Expat Tax Services
GRANDVILLE, MICHIGAN, UNITED STATES, May 23, 2023/EINPresswire.com/ — Greenback Expat Tax Services, a leading tax services provider for Americans living abroad, has released its 2023 Expat Trends Survey results. The survey provides critical insights into the experiences and sentiments of 3200+ US expatriates living in 122 countries regarding their unique tax situations and relationship with the US government.
In the survey conducted by Greenback Expat Tax Services, data revealed an increasing dissatisfaction among American expatriates with the tax obligations imposed on US citizens living abroad. According to the survey, 1 in 5 American expats (20%) are considering or planning to renounce their US citizenship, largely due to complex tax laws and perceived lack of representation.
As of May 15, 2023, a total of 5,315 US citizens have renounced their US citizenship in 2023. This is a significant increase from the 2,390 US citizens who renounced their citizenship in 2022.
The increase in the number of US citizens renouncing their citizenship is likely due to a number of factors, including the high cost of US citizenship, the complexity of US tax laws, and the perception that the US government is becoming increasingly hostile to its citizens.
1 in 5 American Expats (20%) are either seriously considering renouncing or planning to renounce their US citizenship in the near term. This trend saw a decrease from 2022’s survey results, which indicated that 24% were considering renunciation. Although, in 2023 an additional 42% said they would consider or not rule out renouncing their US citizenship in the future.
Of those who said they would renounce their US citizenship, 34% said their decision to renounce was based on the complexity of filing US taxes each year. 14% of expats are concerned about the current political climate; 13% said their interest in renunciation was based on disappointment with the direction of the American government. Another 11% say that they wish to renounce because they married a non-US citizen abroad.
The 2023 survey also revealed that the majority of US expats continue to grapple with a multitude of financial and regulatory challenges.
Key findings from the survey indicate:
– 80% of expats feel underrepresented by the US government
– 69% of expats believe they shouldn’t be required to file US taxes
– 33% of expats claim to pay more tax than when residing in the US
– 51% of respondents call for the repeal of citizenship-based taxation
– Only 11% of expats abroad plan to return to the US permanently
– Despite an increase in the number of expats aware of their US tax obligations, 32% are still unfamiliar with the Streamlined Filing Procedures Program
– In the aftermath of the COVID-19 pandemic, 43% of expats expect to work remotely full-time or adopt a hybrid model
Despite the challenges, 64% of expats express confidence in meeting their US tax filing obligations. However, there is a clear call for change, with 15% desiring a simplified filing process.
While the IRS has implemented the Streamlined Filing Procedures to assist expats in achieving tax compliance, 32% of respondents were unaware of the program, highlighting a need for better outreach and education.
The survey also shed light on the impact of the Foreign Account Tax Compliance Act (FATCA) on American expatriates. While 36% of respondents claimed no impact, 27% still needed to file Form 8938 for FATCA compliance, and 10% experienced difficulties with local banking due to FATCA regulations.
“Taxation without representation; no one is really representing US expat interests in Congress. I feel the tax laws are geared to catch very wealthy individuals trying to evade taxes but cause an excessive tax burden on the average US expat. Furthermore, US expats abroad are limited in their investment options with US brokerage firms (e.g., no mutual funds & US banks don’t want them as customers). We’re penalized both in the US and abroad by our US passports”. Said one of the survey respondents.
“The results of our 2023 survey underscore the need for policy changes and better outreach to support US expats,” said Mike Wallace, CEO of Greenback Expat Tax Services. “Our mission is to help expats navigate this complex system and alleviate their tax anxieties.”
For additional information on the findings of Greenback’s 2023 Expat Trends Survey, please visit https://bit.ly/3oqSHXw
About Greenback Expat Tax Services:
Greenback Expat Tax Services is a global leader in providing tax solutions for American expatriates. We are committed to easing the anxiety and hassle of US tax compliance for Americans living abroad, through expert guidance and personalized service. Our team of expat-expert CPAs and IRS Enrolled Agents help expats navigate the complex US tax system, offering peace of mind and clarity in a complicated process.
For more information, please contact Saneeshas@greenbacktaxservices.com or visit www.greenbacktaxservices.com
Greenback Expat Tax Services