Author Reconsiders US Citizenship for Children, Citing Financial Benefits
Translated & summarized from Maariv by baba
Author Ariel Feiglin is reconsidering obtaining US citizenship for his children due to significant financial benefits, including substantial child tax credits and access to investment opportunities unavailable to Israelis. While acknowledging the complexities of dual taxation and reporting, he believes the potential gains, estimated to be hundreds of thousands of shekels, outweigh the drawbacks. Feiglin's previous opposition has softened to a "maybe," influenced by the argument that securing these benefits now is prudent, especially given the decreasing cost of renouncing citizenship if needed later.
The story in 5 lines · by baba
- Author Ariel Feiglin is now considering US citizenship for his children due to financial benefits.
- US citizenship offers substantial child tax credits, potentially totaling nearly $87,000 for three children over 17 years.
- Israeli citizens face investment restrictions and lack tax benefits on home sales that US citizens might access.
- Feiglin acknowledges the bureaucratic challenges and future tax reporting obligations associated with dual citizenship.
- The cost of renouncing US citizenship has recently decreased significantly, making it a less permanent commitment.
Author Ariel Feiglin has shifted his stance from firmly opposing US citizenship for his children to considering it, primarily due to significant financial advantages. While previously hesitant due to ideological concerns and the complexities of dual reporting to the IRS, Feiglin now sees the potential economic benefits outweighing the drawbacks.
Feiglin highlights that as an Israeli, he cannot invest in Israeli mutual funds or ETFs, nor can he open an investment account with digital banks like One Zero. Furthermore, Israeli tax benefits on selling a first home do not apply to US citizens who must meet residency requirements. These financial restrictions make it difficult for Israelis to access certain investment vehicles and tax advantages available to US citizens.
Conversely, US citizenship offers substantial financial incentives, including child tax credits that can amount to approximately $1,700 per child annually for 17 years, totaling nearly $87,000 for three children. Additional support during university years and potential investment returns could push the total benefit close to half a million shekels. Feiglin acknowledges that while his wife, an American citizen, faces reporting burdens, his children would bear the brunt of tax obligations on future gains.
Despite the bureaucratic hurdles and potential future tax liabilities, Feiglin was persuaded by the argument that it is better to secure the immediate financial benefits than to risk losing them later. He notes that the cost of renouncing US citizenship has also decreased significantly, making it a less daunting prospect if circumstances change. Consequently, Feiglin's firm "no" has become an "maybe," with plans to pursue the process despite the current late timing for his visit.