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Merely failing to report something shes required to report, even if its not taxable, could result in major tax penalties. Even though Prince Harry will no longer be receiving his annual allowance after stepping back from being a senior royal, he will still have ties to royal finances. Much of his wealth comes through funding from his father, Prince Charles, through the Duchy of Cornwall. Markles share of the Royal familys assets wont come in below either threshold. Still, for other reasons, it will matter which filing status the couple chooses.
While choosing this filing status makes couples ineligible for certain tax credits and limits certain deductions, such concerns are unlikely to be meaningful for such a wealthy couple. More importantly, filing separately would mean Markle would not have to report Prince Harrys assets or income.
The Royal family would probably prefer that its finances not become the knowledge of the Internal Revenue Service.
The temptation for someone to leak that private information would be great. The only way for Markle and the British oyal family to extricate themselves from the tax nightmare the IRS has created for U. Citizens living abroad is for Markle to renounce her citizenship, something only a few thousand Americans do each year. She has also earned income from her womens fashion line at Montreal-based clothing store Reitmans, plus six-figure sums from her film appearances. The form includes a detailed balance sheet and income statement, too. But even if she wants to or her in-laws pressure her into it, Markle wont be able to renounce her. She will eventually become a British citizen, but she cant even apply for citizenship until shes been married and living in the UK with Prince Harry for three years. So the couple will have no choice but to deal with the IRS for the next several years.
But that wouldnt solve the problem of the IRS learning certain details of the Royal familys finances. Some details are already public. The Duchy of Cornwall publishes annual financial statements of its income, expenditures, and staff. The tax implications of the royal couples marriage highlight the complexities of the UK. As the couples totally unromantic tax story unfolds over the next few years, it will be interesting to see if the extra attention their situation brings to the difficulties of the UK. tax code will spark any changes. His mother's family was from New Hampshire. He has two brothers, Frederick and Michael Markle. He did not attend as he was recovering from heart surgery.
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