How Meghan Markle, Prince Harry Marriage Is Costing The Royal Family Money

They’ve been husband and wife since May 2018, but that doesn’t mean Meghan Markle and Prince Harry’s marriage isn’t causing some headaches for the rest of the royal family. In fact, the couple’s wedded bliss Is actually a bit of a financial burden on the family.

According to Express UK, because Markle is still a U.S. Citizen, she is subject to paying taxes to the United States on any income she makes as a royal—in addition to the taxes she pays to the UK as well. Though the Duchess is in the process of becoming a UK citizen, which takes a few years, she is still an American as well, and the taxable income she earns or allowances she receives include items such as gifts, homes, earnings from her acting career and even her clothes.

However, the real financial headache according to the website is that the US can also attempt to request taxes from Prince Harry’s income as well since he is married to her—regardless of the fact that he is not an American Citizen. It means that his inheritances from his mother, Princess Diana, and the Queen mother, are at risk of being imposed to some American taxes, as is any money he may receive from Prince Charles and Queen Elizabeth as well.

According to the IRS, a US citizen is required to file a tax return and to report any foreign accounts, as well as assets valued at more than $200,000 and gifts valued at more than $15, 797, even if said items are not in the person’s possession. Markle will be required to follow those rules while she is still a US citizen, and the only way to make it stop is to renounce her citizenship there when she becomes a British citizen.

Of course, even if Markle does go through with renouncing her citizenship in the US when she is officially a British one, another member of the royal family will be required to have US taxes paid on their behalf for several years yet. Because Archie Harrison, Markle and Prince Harry’s son, was born in wedlock to an American citizen abroad who lived in the US for at least five years with two of them post age-14, his own income and assets are exposed to US taxes as well.

That means Archie’s “unearned income” over $2,100 until he is 18 is exposed to taxation by the U.S. government. However, when he is also 18, he can also renounce his citizenship.