Is American a Nationality? Understanding Identity, Citizenship, and Global Perception

Is American a Nationality? What is the impact on US Taxes

With over 333 million residents in the United States as of 2023 (according to the U.S. Census Bureau), the concept of being “American” sparks debates worldwide. While the U.S. grants citizenship to individuals born or naturalised within its borders, nationality encompasses a broader sense of belonging tied to culture, geography, and global identity. So, is “American” strictly a nationality, or is it more nuanced?

Globally, nationality often signifies one’s legal connection to a country, typically aligned with citizenship. However, the term “American” introduces complexities because it could refer to individuals from the United States or the entire Americas (North, Central, and South America).

According to a Pew Research Center study, 66% of people globally associate “American” exclusively with the United States, further emphasising the term’s evolving definition.

Legal Definitions: Nationality

The U.S. government defines nationality as allegiance to the United States under its immigration laws. While all U.S. citizens are nationals, certain individuals, such as those from American Samoa, hold U.S. nationality without full citizenship rights. The distinction can influence voting rights, passport eligibility, and taxation.

Key Points:

 – Citizenship grants full rights, including voting and holding public office.

 – Nationality reflects a legal relationship and sense of belonging without always including citizenship.

For example, individuals born in Puerto Rico are both U.S. nationals and citizens, but those born in American Samoa are nationals only unless they pursue naturalisation.

Two American Parents in the UK

Scenario: John and Emily, both U.S. citizens, move to the UK for work and have a child, Liam, who is born in London. Under U.S. law, Liam is automatically recognised as a U.S. citizen because both his parents are American.

Outcome Without Action:

– When Liam turns 18, he becomes subject to U.S. tax filing requirements, even if he has never lived in the U.S. or earned income there.

– Failure to file could result in penalties, including fines of up to $10,000 for non-compliance with Foreign Bank Account Reporting (FBAR) rules.

Actionable Steps:

– Register Liam’s birth with the U.S. Embassy in London to obtain a Consular Report of Birth Abroad (CRBA) and a U.S. passport.

– Familiarise Liam with U.S. tax filing obligations as he approaches adulthood.

– Work with a cross-border tax advisor to ensure compliance with U.S. tax laws. 

From London to New York

Scenario: Sarah, a British consultant, moves to New York for work without fully understanding U.S. nationality and citizenship laws. She assumes her visa status grants her the same rights as a U.S. national.

Outcome Without Action:

– Sarah overestimates her privileges and mistakenly votes in a local election, violating U.S. law.

– She faces fines of up to $10,000 and risks deportation.

Actionable Steps:

– Verify your visa or green card status and rights with U.S. Citizenship and Immigration Services (USCIS).

– Avoid engaging in activities reserved for U.S. citizens, such as voting.

– Consult an immigration lawyer to clarify your status.

London to California

Scenario: Mark, a British entrepreneur, moves to California and applies for U.S. citizenship. He fails to disclose his overseas income, assuming that only U.S. nationals must report worldwide earnings.

Outcome Without Action:

– Mark incurs penalties for non-compliance with IRS tax laws.

– He owes back taxes plus fines of up to 25% of his unreported income.

Actionable Steps:

– Understand IRS reporting requirements for both U.S. nationals and citizens by visiting the IRS website.

– Report all global income and file annually using the appropriate tax forms.

– Hire a tax professional specialising in U.S. expatriate taxes.

The Broader Implications: Cultural and Political Identity

Beyond legal definitions, being “American” encompasses cultural values, political ideologies, and historical contexts. The term often sparks debates, particularly among residents of other American continents who view its exclusive use by the U.S. as dismissive.

Did You Know?

• In 2022, approximately 5 million Americans lived abroad, according to the U.S. State Department, raising questions about nationality’s role in expatriate identity.
• Latin American countries often challenge the U.S.-centric interpretation of “American” as a nationality.

How to Confirm Your Nationality Status

1. Review Your Birth Records: U.S.-born individuals are automatically nationals; exceptions apply to territories like American Samoa.
2. Check Your Passport: A U.S. passport indicates your nationality and, if applicable, citizenship.
3. Consult Legal Experts: Visit USCIS.gov for official information.
4. Understand Dual Nationality Laws: Many countries allow dual nationality; however, some require renunciation of one.

The Risks of Ignoring Nationality Laws

Failure to understand nationality status can lead to:

• Deportation: Engaging in unauthorised activities can result in removal from the U.S.
• Fines: Non-compliance with tax and legal obligations incurs significant penalties.
• Lost Opportunities: Misunderstanding eligibility for jobs, scholarships, or benefits.

5 FAQs About Nationality

Conclusion

While “American” is widely recognised as a nationality, its definition varies depending on legal, cultural, and political contexts. For individuals navigating U.S. immigration or expatriation, understanding the nuances of nationality versus citizenship is crucial to avoiding legal pitfalls and ensuring compliance. Always consult trusted resources or legal experts for accurate guidance.