Comment by ForHackernews a day ago
What a load of whinging. You do get the same benefits: Americans abroad can collect social security and medicare benefits, your children can apply to US universities on equal footing with US residents.
The US has tax treaties with almost every country, so you absolutely do not "pay full price" to the IRS unless you're too lazy to deduct the taxes you're paying in your local jurisdiction.
US taxes are objectively more annoying than most countries' and attempts to simplify the process are stymied by people with political axes to grind (e.g. Grover Norquist) and for-profit tax prep firms that stand to lose lots of money: https://www.propublica.org/article/how-the-maker-of-turbotax...
Things might finally be shifting. In recent years, the IRS has introduced its own software that will handle most taxpayers' basic situations.
> What a load of whinging.
Aka 'facts you don't like'.
> You do get the same benefits
Nope. Definitively, categorically, obviously not.
> Americans abroad can collect social security
Social Security eligibility depends on having paid into the system for a certain number of quarters, and some countries do not have Social Security agreements with the U.S.
> and medicare benefits
Medicare does not cover healthcare costs outside of the U.S.
Expats would have to return to the U.S. to use any Medicare benefits, and even then Americans face issues.
> your children can apply to US universities on equal footing with US residents.
On equal footing?? No. And again you need to be in America to take advantage of that.
U.S. universities often treat students living abroad as international students when assessing financial aid or admissions. Access to loans, scholarships, financial aid can be more difficult because of residency status, financial circumstances etc.
Besides all of which, why wouldn't I be equal to other citizens when applying for college? If I were in US college I'd be paying US taxes.
> The US has tax treaties with almost every country
FEIE and FTC help reduce the tax burden, but they require detailed reporting. Complex U.S. tax forms means costly & time-consuming filings - even if no taxes are owed - on top of any weird interactions with the local tax code.
And, not all foreign taxes are deductible. Foreign investment income, pensions, Social Security-equivalent benefits, etc, aren't always fully excluded.
> you absolutely do not "pay full price" to the IRS unless you're too lazy to deduct the taxes you're paying in your local jurisdiction.
That simple is it? Just navigate the US tax code, and all the interactions of it with the country you're in, every year, and let's not even talk about setting up a company. Simple, lol.
... Have you ever been through this process yourself? Did you ever even pay an accountant to do it?
Yes, I've lived abroad for the last ten years and done my taxes myself the whole time. FACTA is a minor irritation that requires good record keeping on my part, and some annoying paperwork once a year.
Could it be simplified and streamlined? Absolutely. Does it merit your overwrought hysterics? "Cruel and unusual"? Absolutely laughable.
If you're wealthy and lazy, then pay an accountant to do it for you - most wealthy, lazy business owners do! If not, do it yourself.
It really is not that bad! I don't understand how anyone who writes software for a living can be intimidated by IRS forms. I'll fill out Form 8833 twenty times over before I'd fight with cmake or helm charts.
Any time I hear an American talk about US taxes they sound like it's a major pain in their backside though.
I just fill "Overseas Income: $xxxxx in xxxxx" and my tax report rolls out as €0 every single year. Because I've already paid my taxes in the country I'm living.
I can also do this without any specialized software or accountants, which seems to be something kind of iffy in the US.