Dual Citizenship and US Taxes: Countries That Allow It and What It Means for Filing

2026-07-09

Last reviewed: July 9, 2026. This article reflects current IRS rules and EA exam requirements as of this date.

Dual citizenship is common. The US recognizes dual nationality — you can hold a US passport and a foreign passport simultaneously. But holding two passports doesn't reduce your US filing obligations.

The Countries That Recognize Dual Citizenship

Most countries recognize dual citizenship, either explicitly or by not prohibiting it. Notable exceptions: China, India, Japan (in practice — Japan technically requires choosing one nationality by age 22, but enforcement is rare), Saudi Arabia, and Singapore (generally does not permit dual citizenship for adults, though exceptions exist).

The full list changes as countries update their nationality laws. The US State Department maintains current information on dual nationality.

The Tax Reality

Your US tax obligations don't depend on your other citizenship. If you're a US citizen:

You file Form 1040 every year on worldwide income
You file FBAR if foreign account balances exceed $10,000
You may file Form 8938 for foreign assets above thresholds
The FEIE or FTC prevents double taxation but doesn't eliminate filing

Your other citizenship may impose its own tax obligations. A US-Australian dual citizen files with the IRS and the ATO. A US-French dual citizen files with the IRS and the French DGFiP. The two systems must be coordinated — inconsistent filings trigger audits.

Accidental Americans

Many dual citizens were born in the US, moved abroad as infants, and have never filed US taxes. They have US citizenship by birthright (jus soli) and foreign citizenship by parentage (jus sanguinis). They may not have a Social Security Number. They may never have held a US passport.

These "accidental Americans" face the same filing obligations as any US citizen. The Streamlined Filing Compliance Procedures are designed for exactly this population — people who didn't know they had to file and want to come into compliance without penalties.

Renunciation as a Tax Strategy

Some dual citizens renounce US citizenship to eliminate their US filing obligations. Renunciation is a formal process at a US embassy or consulate, costs $2,350, and may trigger the exit tax if you're a covered expatriate (net worth $2 million+ or average tax liability $201,000+ over 5 years).

Renunciation eliminates future filing obligations (post-renunciation income is not US-taxable unless it's US-source). It does not eliminate past filing obligations. You still need to file your final return and Form 8854.

The EA Role

An EA can help dual citizens determine their filing obligations, prepare coordinated dual-country returns, and handle streamlined compliance for accidental Americans. The EA credential is federal — it covers US tax obligations for citizens anywhere in the world.

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