Your children may also be U.S. citizens

It comes as a surprise to many Americans living abroad that their children are likely also U.S. citizens, even if those children have never been to the U.S. or acquired a U.S. passport or social security number.

The rule is this: if your child was born after November 13, 1986 and you resided in the U.S. for at least 5 years, at least two of which were after the age of 14, then your child automatically acquires U.S. citizenship and is subject to the same tax and FBAR filing requirements as any other American.

Most young children won’t have enough income to require reporting but depending on their level of assets they may need to file an FBAR.