In the midst of happiness of having their first child, Prince Harry and his wife Meghan is now going to have to pay a heavy tax bill. According to United States law, as Meghan and her child are American citizens, they fall under taxation laws of the country.
The baby is due soon and the Tax Day for the country is 15th April. America is one of the few nations in the world who taxes based on the citizenship and not on the basis of residency. Eritrea and Myanmar is couple of other countries who follow this taxation rule.
This means though Meghan along with her kid is supposed to stay at the Frogmore Cottage of Windsor, they will still be taxed by USA. Meghan will be paying taxes at the Internal Revenue Service (IRS); this is the tax authority of United States. As per the present law, Americans who have been staying in the country for past 5 years by default pass their citizenship to their children.
Meghan, who is at present the Duchess of Windsor is supposed to apply for citizenship at United Kingdom. This is a time consuming process. The process involves staying at least for 5 years in United Kingdom. According to Jason Knauf, who is the communication secretary for Harry informed the law will be followed even in case of Meghan before she gets the UK citizenship.
After she gets this citizenship, she can get away from her American citizenship and also the tax liability. Now this is another complicated process. To get away with the American citizenship, she needs to pay some more amount of taxes. Anyone who is more than 18 years of age, US tax authorities is supposed to charge an exit tax on the complete set of assets.
Harry and Meghan got married in 2018.