Will Meghan Markle and Prince Harry’s Baby Have to Pay Taxes in the U.S.?
The royal baby is on the way! And everyone is waiting with baited breathe to see what the newest royal will be like. So far, Meghan Markle and Prince Harry have kept most things surrounding their baby a secret. The public doesn’t even know the gender of the little royal yet.
But while Markle and Harry are preparing Frogmore Cottage for their little bundle of joy, there is another pressing question that a lot of people want to know. What will the baby’s citizenship be?
Will Markle’s baby be an American citizen?
You might think that any child born to an American would be an American citizen, but in Markle’s case, it’s a bit more complicated.
After announcing Markle’s engagement to Harry in 2017, Jason Knauf, the communications secretary for Kensington Palace at the time, told the BBC that Markle intended “to become a UK citizen.”
He stated that she would go through the process of citizenship, which could take a number of years.
It is unclear whether Markle will renounce her American citizenship or become a dual citizen.
Since Markle will still be an American citizen when she gives birth, her child may be an American citizen, according to the American Embassy in the UK.
“A child born outside of the United States and in wedlock to a U.S. citizen parent and a
Will the baby have to pay American taxes?
If the child is an American citizen, then he or she may have to pay taxes, despite never actually stepping foot in the United States.
According to the Wall Street Journal, when the child reaches adulthood, their assets and income will be a part of the U.S. tax system. If the child makes more than $2,200/year of unearned income, they will be subjected to paying taxes even sooner.
If Markle renounces her citizenship, then she could avoid these issues, but becoming a British c
In addition, Markle must make sure that she reports her income to the U.S. government because taxes paid to Great Britain could offset some of the amount that she owes the U.S.
What other implications does this have on the royal family?
Traditionally, the royal family does not reveal many details about their finances, but if the baby and Markle must report their earnings to the U.S. government, all of that could change.
If Markle makes more than $300,000, she will have to list her foreign assets to the IRS, according to The Hill.
Where will Markle have her baby?
Recently, reports have surfaced that Markle has decided not to have her baby at the Lindo Wing of St. Mary’s Hospital which the
Instead, the former actress has opted to have her first child closer to her new home at Frogmore Cottage in order to keep the birth private.
“Harry and Meghan realize there is intense public interest but this baby is not a direct heir to the throne and they want the birth to be as private as possible,” a source recently told the Sun.
“Meghan is nervous about complications such as an emergency Caesarean and doesn’t want the pressure of having to look immaculate on the hospital steps just hours later.”
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