Too often, people who live outside the United States and who are citizens of other countries discover they also are U.S. citizens, without knowing it, and owe U.S. taxes. 

Most nations tax individuals only when they live in that country or own property there. However, the United States imposes taxes—on a worldwide basis—on its citizens regardless of where they live or other citizenships they hold. It is therefore very important to determine whether you may owe U.S. taxes and need to file reports with the U.S. government.

How can you determine whether you and any of your family members are Americans? Generally, if an individual meets the criteria for U.S. citizenship, he or she is automatically a U.S. citizen. See “How a person becomes an American.”

Individuals who discover they are accidentally American often ask whether they can give up their U.S. citizenship to avoid ongoing tax obligations. The answer is “yes.” However, an exit tax may be imposed—unless certain conditions are met.

J.P. Morgan can help you and your advisors determine (1) whether you or a family member is actually a U.S. citizen, and (2) what you wish to do and can do about it.

U.S. expatriation rules help many go back to what they thought was their true nationality. On the other hand, you may want to take advantage of your newfound U.S. citizenship.