# Dual Citizen - Tax question



## jitter (Apr 23, 2012)

Hi all,

I'm a USA/Australian dual citizen, and I've just accepted a job in the US, which starts in August this year. I'm a little confused about what my tax situation will be like once I start working there. 

Background- I was born in Australia (mother is american, father is australian) and got my US citizenship via a 'report of birth abroad', my mum also got a SSN for me at this time. I've lived in Australia my whole life, except for ~2yrs in Europe and ~4yrs in the US when I was in elementary school. 

I'm particularly worried about having issues with back-taxes as I've never filed a US tax report before. I didn't even realise that this is something I should have been doing as I've never worked in the US before, and didn't have any intention of working in the US until a couple of years ago as I got closer to graduation. 

Any help/suggestions are appreciated!


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## Bevdeforges (Nov 16, 2007)

This shouldn't be a huge issue - basically you need to get your US tax filings up to date. Unless you have large investments or savings outside the US (i.e. $200,000 or more), you should be able to simply file 3 or 4 years worth of back taxes - primarily to show that you owe nothing in US taxes.

Your "earned income" (i.e. salary income) from outside the US needs to be declared, but there is a special form you use to formally exclude that income from taxation. Other income, such as bank interest and such, needs to be declared, but if that generates any potential US tax liability, the taxes you've paid on that income can be offset against any US liability.

In your situation, I'd wait to back file until you get to the US. If you're a recent graduate and have only started working in the last couple years, you may only need to file for the period of time you've been working. And once you're in the US, you'll have access to considerably more (low cost or free) tax assistance. 
Cheers,
Bev


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## jitter (Apr 23, 2012)

That all sounds relatively simple. Thanks for putting my mind at ease, Bev! 

I am a recent graduate and have only had casual low income type jobs, so hopefully I won't owe anything to the US. I've always been under the taxable income bracket in Australia.

I'll be sure to get some tax advise when filing for the first time in the US.


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## Bevdeforges (Nov 16, 2007)

If you're a single person, then your filing threshold is somewhere in the area of $9,000 (US dollars, obviously). Don't know what the Australian thresholds are, but as a new job holder, you should be ok to just wait until you get to the US.
Cheers,
Bev


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## Researcher (May 12, 2012)

*US tax*

Not sure about the back tax, but I do know that once you are in the US tax system you can never get out unless you renounce your US citizenship. You may end up paying taxes in both countries if you move to another country after the US or back to Australia. You then have to apply to get back the tax you have paid twice.


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