Prince Harry and Meghan Markle are very excited about their first child. The due date is getting closer and they can’t wait to meet their baby and become parents. However, with all the excitement, there’s also a bit of anxiety. So, for instance, there’s the question whether the child will have to pay US taxes.
Source: Getty Images
Since Meghan is a US citizen, she is liable to pay US taxes, and now that she’s about to have a baby, her child is liable to do the same. Namely, unlike in many other countries, in the United States, you are supposed to pay taxes based on citizenship instead of residency. Thus, even though Meghan Markle is living at Frogmore Cottage in Windsor, she is still required to file tax returns with the Internal Revenue Service (IRS). And given that she automatically passes on her citizenship to her child, the same applies to the baby.
Source: Getty Images
In case you’re wondering, Meghan will apply for UK citizenship, however, it will take some time to complete this process. Harry’s communication’s secretary, Jason Knauf, said that Meghan “will be compliant with immigration requirements at all times,” which, in turn, means that she can’t become UK citizen before she’s spent at least five years there. After that, she will be able to renounce her US citizenship if she wants to, though that requires paying more taxes. As for her child, he or she will have to wait until the age of 16 at least, as, according to the US law, minors under the age of 16 are “presumed not to have the requisite maturity” to do something like that.
Source: Getty Images
All US citizens who live abroad have to pay taxes, so Meghan is no exception. In addition to that, they also have to gifts over $15,797 (£12,080) and assets over $200,000 (£152,930). Sam Ashley, US tax director at The Tax Advisory Partnership, said: “All the royals are probably beneficiaries of various trust and they will need to be careful.” She also added: “The Royal Family likely have some quite complicated trust structures to pass down family wealth and it’s unlikely they would want the US to look into that.”
All in all, it remains to be seen what will happen with the Duke and Duchess’ child. Considering Meghan’s due date is April 15, we probably won’t have to wait for too long to learn more about their child. Stay tuned for more news.
Source: bbc.com
