Recently, a newspaper article mentioned that your child needs to pay income tax and inheritance tax to the U.S. government if he/she is an U.S. citizen. This was a terrifying news for those who are willing to give birth in the U.S.A.

Dual citizens pay tax to the country they choose. If they prefer to pay tax the U.S.A., then certain amount of the income they earn outside U.S.A. will be exempt from the tax.

As an example, non-taxable income amounts in 5 years for the U.S. citizens living outside the U.S.A. are $92,900 in 2011, $95,100 in 2012, $97,600 in 2013, $99,200 in 2014 and $100,800 2015.

As for the inheritance, the parents of a child who is born in the USA and has become a dual citizen are by no means an inheritance taxpayer, if they are not U.S. citizens.

To put it simply, our children are not taxpayers until they earn any income, as they will pay tax to the country of their choice when they begin to earn income. If they prefer to pay to the U.S.A., then a significant amount of their income shall be tax free.”