Meghan Markle will become a member of the British royal family, which commands a fortune over $500 million, on May 19.
Markle will remain a US citizen for at least five years and will still have to pay taxes to the IRS on any income earned.
If Markle accepts an allowance or other form of “income” in the UK exceeding $104,100, she will have to pay US taxes on that money.
Meghan Markle will soon become the newest member of the British royal family, which commands a fortune over $500 million. But romping in their riches may cost her extra.
Markle and Prince Harry will wed on May 19 at St. George’s Chapel in Windsor and begin a carriage procession immediately after the ceremony. Though Markle will likely obtain the title of Duchess, she won’t become a UK citizen for years.
As the Washington Post first reported back in November, Markle could “cause tax headaches” and create some “mundane hurdles” for the royal family.
Markle is a citizen of the United States and is purportedly living in the UK on a family visa, according to the BBC. As the fiancée of a British citizen — Prince Harry — Markle will have to marry within six months of obtaining the visa to maintain her status.
Markle’s family visa will be effective in 2.5-year increments and she won’t be granted permanent residency until she’s lived in the UK for five years. After that, she can finally apply for UK citizenship and potentially become a dual citizen of the US and the UK.
If she becomes a dual US/UK citizen, Markle will have to continue filing her taxes each year with the IRS. If she has more than $300,000 in assets at any point during the year, she will have to file a specific form that details foreign assets, which could include foreign trusts, subjecting the royal family “to outside scrutiny,” according to the Post.
All the while, the “Suits” actress will be paying taxes to the IRS on any income she makes — regardless of where she earns it.
“US citizens, green card holders, and permanent residents are required to file tax returns with the IRS every year no matter where they reside,” Avani Ramnani, director of financial planning and wealth management at Francis Financial, told Business Insider.
“This is a special tax return called the expatriate tax return,” she said. “US citizens, including Meghan Markle, get taxed on international income earned outside …
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