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Cape Town - As soon-to-be parents, Prince Harry (34) and Meghan, Duchess of Sussex (37), have their hands full – but thanks to the US tax system, it seems the royal couple might have even more on their plate.
As American citizens, Meghan and her baby are liable to pay US taxes, which means the royal family’s private accounts could potentially be open to America’s Internal Revenue Service (IRS), CNN reports.
This means the royal couple’s wealth will be examined by US tax inspectors.
"The United States has a citizenship-based taxation [system], so as long as Meghan is a citizen of the United States she’s taxed," explains David Treitel, founder of American Tax Returns Ltd.
"The baby is being born to a United States citizen and that baby, little boy or girl, who comes along in the next few weeks, will automatically be a citizen of the United States simply because their mother is," he added.
Meghan’s dilemma is unique in that she’s the first royal to have to deal with a situation like this – and it appears to have the palace accountants on high alert.
"There’s no other precedent of anybody else in the royal family who’s been American," Treitel said.
Meghan is required to file a tax return and report any foreign accounts regardless of where she lives, according to KOAM news.
The duchess might even have to declare items such as the wedding ring – which forms part of the Royal Collection – she received from Queen Elizabeth, the priceless diamond in her engagement ring, which was taken from Princess Diana’s jewellery collection as well as the wedding gifts she received from international royalty and A-list friends, wdsu.com reports.
The only way Meghan can avoid the tax headache is to renounce her US citizenship and become a British citizen. But even so, their baby would be liable for US tax until the age of 18.
It seems the royal couple have their work cut out for them if they’re to dodge the minefield of US taxes.
