Meghan Markle’s baby ‘will become dual citizen and be liable to pay US taxes’ after they are born, expert claims
Both Meghan and her baby will be liable to pay federal income tax, according to a financial expert
MEGHAN Markle and Prince Harry’s baby will be "liable to pay taxes in the United States" when he or she is born, which is thought to be in the next few weeks.
The Duchess of Sussex, 37, is currently recognised as an American citizen, which means her baby will automatically become a dual-US citizen, according to experts.
Both Meghan and her baby will be liable to pay federal income tax, which an expert claims could involve the child opening up the private royal accounts.
This includes non-earned income over $2,100 (£1,606) until they are at least 18.
While the child is too young to renounce their US nationality, any jewellery or property passed down to the child will become the business of the Internal Revenue Service.
And any trust fund set up for the privileged royal youngster is eligible for tax in the US, even if they never visit America.
David Treitel, the founder of American Tax Returns Ltd, told : “The United States has -unique among nations -a citizenship-based taxation (system), so as long as Meghan is a citizen of the United States she is taxed.”
The financial advisor said Meghan’s situation is unique as the royal family haven’t had an American before in her prestigious position.
David added: “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 her mother is.”
Meghan, who was born in California, still has to file a tax return in America and report assets over $200,000 (£153,000) and gifts over $15,797 (£12,000).
This is despite her becoming a resident of Frogmore Cottage in Windsor in the last few weeks.
It could include Meghan declaring items like a wedding ring given as a present by the Queen from the Royal Collection.
And the diamond in her engagement ring from Princess Diana’s jewellery collection might have to be declared too, alongside any lavish gifts from A-list friends.
Even the Duke and Duchess of Sussex’s multi-million dollar home, Frogmore Cottage, may have to be listed too.
David added: “The Queen has got to sit there and her advisers have to sit there thinking: well if I lend Meghan a tiara, if I have the baby use a beautiful silver rattle that was used by Queen Victoria, how much is that worth? What's the value of it? How much is to be reported to the States? It's a tough question, it's not easy.”
He advised that if Meghan sells any items, she could be taxed on any rise in their value, which could increase a lot given her influential name.
Even if Meghan renounces her US citizenship, her baby could still be liable for US taxes until they are 18.
According to the US Department of State, the baby will acquire a US citizenship as they were born in wedlock to an American citizen who has resided in the States for five years, with at least two of these years being after the age of 14.
It sounds like a lot of paperwork for the royal accountants!
Meghan is said to have turned to Victoria Beckham for interior design tips, after finally moving in to Frogmore Cottage.
The Windsor house has undergone a £3million renovation ahead of Harry and Meghan making it their permanent home.
More on the royal family
The 10-bedroom cottage, built in the 17th century at a cost of £450, was previously split into five units and used as accommodation for members of the royal household.
We recently revealed another of Meghan's pals, Serena Williams, may have given away the sex of the Royal baby.
A royal expert has also claimed that Thomas Markle will never meet his grandchild.