Prince Harry and Meghan Markle are getting closer to severing financial ties with the Royal Family, but there’s one entity that will always be part of the picture: the IRS.
The Duke and Duchess of Sussex announced earlier this month that they would “step back” as senior members of the royal family and work toward becoming financially independent.
Regardless of where the family winds up settling, one thing is for certain: Meghan is still required to file and pay U.S. taxes as an American citizen — and so will the couple’s son, Archie.
Royal status notwithstanding, the Duchess and her child are in the same situation as roughly 9 million Americans who are residing in foreign nations.
“Whether they’re settling in the United Kingdom or in Canada, the situation isn’t going to change for Meghan; she is a U.S. citizen,” said Gideon Rothschild, a partner at Moses & Singer in New York. “She files a return every year and pays taxes on worldwide income.”
The United States taxes its citizens regardless of where they reside and where they earn their income.
“Once they work their way into financial independence, more will change with their tax situation,” said Lisa Greene-Lewis, CPA and editor with TurboTax Blog.
For starters, whether the couple earns income from sponsored posts on Instagram or from merchandise sold under their Sussex Royal trademark, Meghan will have to report self-employment income from those deals.
She’ll also have to pay the self-employment tax of 15.3%, a levy that covers Social Security and Medicare taxes…Read more>>