<prompt> Human: Long story short, my great grandfather was an Italian citizen, through an old and obscure legal loophole short explanation, a birthright I am automatically able to get dual citizenship by filling out a ton of paperwork, if I choose to do so. I really want to get dual citizenship for the benefits of being to travel freely through the European Union, and also so that I can pass on my Italian heritage to my future children, if they desire citizenship as well. My question is, are there any laws or finance issues that I am not aware of which would make it costly or difficult down the road that would come about if I were a dual citizen? Would my wages be affected in any way? Thanks so much. If you want to know more about citizenship loophole pm me and Ill send you a link to it. Its legit and not frowned upon in any way, just not many people know about it. Assistant: I dont know the answers to these questions but here are some specific things you need to find out or be aware of.1 Do you currently or are you likely to ever require a security clearance to do your job? Some countries, quite understandably, are extremely reluctant to give someone with dual citizenship access to classified material.2 What are Italys rules around reporting foreign income? As I understand the US system, US citizens need to report all income from anywhere in the world no matter what. Meanwhile Australia where I am from only requires you to report foreign income if you are actually resident in Australia. If you move overseas your overseas income ceases to be of interest to the Australian tax office. You will want to find out what the deal is with Italy.3 I can pass on my Italian heritage to my future childrenNot sure about Italy but the UK had two classes of citizens. Citizens and citizens by descent. I have british citizenship through a parent so I am a citizen by descent. For all intents and purposes I myself am a citizen of the UK however citizenship does not automatically pass from me to my children. As I understand the rules, my children need to either be born in the UK or live there for 3 years before they can become citizens. If I was a regular UK citizen my children would just get it automatically. Check that Italy doesnt have any rules like this.Generally speaking however you should absolutely get it if you can. I havent used my UK citizenship particularly, although hopefully I will be later this year, but my brother is now happily living in the UK. He was able to just show up, rent a room, open a bank account and start looking for a job. No visa issues, no work permit, no fuss.Human: The US is the only country that taxes based on citizenship, not residency.Assistant: Can you elaborate a bit on this? Would I have to report income made overseas to the United States since I am a US citizen?  <response>: To clarify what the other 2 have said, if you are living or plan to live abroad you will still need to report all earned income to the IRS on a 1040. Youll automatically get a 2 month extension to file it, but it is necessary to file. With the 1040, you should also file a 2555, which should allow you to subtract most if not all of your foreign income from your AGI. There is another form 1116 that will allow you to take a credit on some of the amount of foreign income not covered by form 2555. For the 2 years that Ive lived abroad, total tax owed has been 0, but the 1040 still needs to be filed.It doesnt end there. For any and all accounts outside of the United States you have a stake in that hold 10000 or more in assets at any time during the tax year, you must file an FBAR and you may need to add form 8938 to your 1040 filing. The FBAR is easy to fill out and can be filed electronically, but it must be done. If you forget or just dont do it, the penalties are so steep that they are making some citizens renounce their citizenshipYou can find at least a start to all the information you need here It gets extremely complicated for cases in which one lives for only part of a year. 