Prince Harry and the Duchess of Sussex’s baby will be for taxes in the United States as soon as it’s born.
As the royal child’s mother is an American citizen, the future prince or princess will be to share information of any income over $2,100 received until the age of 18. The U.S.A. is one of the few countries to charge income tax based on citizenship, and not residency of citizens.
That property, homes, inheritance, jewelry or even gifts received as long as the little Royal is a US citizen and too young to renounce his or her nationality.
This is called non-earned income, and it may be one of the reasons that the British monarch marriages like Meghan Markle’s and Prince Harry’s until relatively recently. Queen Elizabeth had to give her formal consent for them to marry, following the Royal Marriages Act of 1772, which guards against anyone who could “diminish the status of the royal house”.
In 2013, that law was changed to apply only to the six people closest in line to the throne, and that line keeps as royals keep producing babies. There is no law that requires a prince or princess to marry someone of royal or aristocratic blood; it is religion that gets in the way. Although royals can marry Buddhists, Muslims, Jews or even atheists, no one in direct line of succession can become a Catholic and keep their right to the throne.
This is because the monarch is also the head of the Protestant Anglican Church of England, which was established back in the 16th century by King Henry VIII. In 2015, the Marriage Act was again , allowing royal marriages to any religion, but a Roman Catholic still cannot become the monarch. That means if little Prince George marries a Catholic and raises his family in that faith, they would be prohibited from taking the throne.
But getting back to the royal-yet-to-be delivered, all his or her non-earned income will become the business of the United States Internal Revenue Service even if the baby, child or teen never sets foot inside the USA. There is no precedent for this, as California-born Meghan Markle is the first American person to marry into the Royal Family. Prince Harry will probably his accounts separated from his wife’s to avoid giving the British public and the U.S. tax authorities any insight into how his family money is distributed.
The Duchess of Sussex has probably just finished her own income tax return right now, as she worked on the TV series Suits until April 2018. She has to her US earnings, which were high, as well as any assets over $200,000, American or British, and all gifts in excess of $15,797.00, including her half-ownership of all wedding gifts and her royal home.
When she was merely Meghan Markle, the duchess $50,000 for each episode of Suits, in which she starred for seven seasons. Suits was the second most-watched TV cable series, after Game of Thrones. The Duchess still gets a percentage of the revenue every time an episode from seasons 1 – 7 airs. She also made quite a lot of money from sponsorships, endorsements, and some clothing collections that she designed.
Meghan Markle is now an official resident of Windsor’s Frogmore Cottage, but even if she decides to her US citizenship, she will have to prove five years of tax compliance to the IRS.
For now, she and Prince Harry an allowance given to them by Prince Charles’s funds from the Duchy of Cornwall. That means revenue from rental properties, land, and other moneymaking operations, seemingly like the medieval feudal system.
Prince Harry, who is 6th in line to the throne, met Meghan Markle in July 2016 and they were married in May 2018 – there were probably royal accountants preparing for American income tax glitches way before they got married. Being that royals receive their salaries from British taxpayers, one must wonder if the Duchess’s heavier-than-usual taxes have her popularity with the British public.
You can imagine Prince William (aka the Duke of Cambridge, the Earl of Strathearn, aka Baron Carrickfergus) and his wife, Her Royal Highness The Duchess of Cambridge (aka the Countess of Strathearn or aka Lady Carrickfergus) debating, at this very minute, how much to on a baby gift for their newborn niece or nephew so that their gift won’t be taxed in the USA.
It certainly must be an even bigger dilemma for Queen Elizabeth, although she must have financial advisors to help her calculate what she will gift her new great-grandchild with. It could be that, in order to American taxes, the tiny prince or princess will be the most destitute royal in the Windsor family.
If Prince Harry and the Duchess of Sussex’s child is a boy, his title will be Earl of Dumbarton, and if it is a girl, her title will be Lady. The baby will not be a prince or a princess as stated in the post above. In December 2012, Queen Elizabeth issued a declaration that all of Prince William and HRH Duchess of Cambridge Catherine’s children would hold the title of HRH and would be styled as princes and princesses. It could be that the Queen will decree something similar for Prince Harry and his American duchess’s children in the future, but that is not for us to know at this point.
I was born near the end of WWII and raised in a small town in New Jersey, just a little more than a 30-minute drive from NYC. It was a wonderful place to be brought up, feeding ducks and canoeing on the river that meandered through the town in the summer, and ice-skating on that same river in the winter.
My two brothers and I were privileged to be raised in a lovely town that was safe to explore on foot, but close enough to NYC to be taken there on day trips to see the Ringling Brothers and Barnum & Baily B & B circus, museums, Chinatown, street fairs in the spring and Broadway shows as we grew older. But we thought nothing of it.
Later as teens, we would go into NYC to buy a couple of beers (the drinking age in New York State was 18, and 21 in New Jersey) and hang out in Greenwich Village where we saw singers such as Bob Dylan who were on the first rung of the ladder on their way to fame.
The sixties were a time of speaking out and creating change. I decided to do my part by joining the Peace Corps, an innovative cold war program established by John F. Kennedy in 1961. I arrived in Brazil at the end of 1966, and after an adaptation period, was sent to serve in Porto Nacional, in what was Goias at that time. I can’t say I changed the course of the country, especially as I was immediately called upon to teach English in the local high school.
I have been teaching ever since; high schools, college literature, college language pedagogy, financial English and everything in-between. I married a wonderful Brazilian from Rio and we had 3 boys and moved around some, as he was an engineer who worked on hydro dams. Nowadays I am a widow and live in BH with 3 cats, one of which has extraordinary powers, and I have 4 wonderful and uniquely different grandchildren nearby. Thus far, I have had an interesting life, and this new endeavor called a blog should make it even more interesting.