Question for USC that have lived abroad

[GJen 9]

What are your responsibilities when moving abroad? I've heard you still have to pay U.S. taxes. Is there some kind of visa journey equivalent to living abroad that gives step by step instructions?

[Saddle Bronc 124]

The part about US federal taxes is true

[Dr. Obvious 49]

You are also still a resident of the last state you lived in while abroad. You are still bound to file state income tax if they have it.

[GJen 9]

You are also still a resident of the last state you lived in while abroad. You are still bound to file state income tax if they have it.

How do you go about doing that? Does it make a difference if you have dual citizenship?

[Dr. Obvious 49]

You file the same way you file in the US. Dual citizenship comes with dual responsibilities.

[scandal 951]

You are also still a resident of the last state you lived in while abroad. You are still bound to file state income tax if they have it.

Mm... not quite true.

You are considered a resident of the last state you lived in for voting purposes.

And you may have a tax obligation in that state, or in other states, but perhaps not.

You do if you still derive income in that state e.g. from employment, or from real estate rental.

You don't if you no longer maintain any property or income in that state.

Example: I lived in California until 2004, and then moved overseas to Israel from 2004-2008.

I owned a house in California which was sold in 2006, and which earned rental income during 2004 and 2005.

Hence I filed federal 1040 returns each year that I lived in Israel 04-08.

And I filed a California return for 04,05,06 due to the rental income (and in 04 I still had California sourced employment income).

In 07 and 08 I filed only a federal return.

I was registered to vote in Santa Clara county CA all during that time. I voted an absentee ballot in each election during the years I lived abroad and got to have my say on local issues (school board, propositions, etc.) even though I was no longer residing in the state or county.

I have now moved back to the US. I changed my voter registration to Illinois and will be filing an Illinois return for 2009.

[Dr. Obvious 49]

I know it is true for Indiana and Virginia at the very least. Virginia is extremely clear about it: http://www.tax.virginia.gov/site.cfm?alias=residencystatus

[GJen 9]

So you file State taxes based on income generated within the state, but you file Federal taxes on any income you make abroad? How is that determined with the different currency? Seeing as how the minimum wage in Venezuela is like half of the minimum wage here, would I even make enough there to file taxes?

Is voting and taxes all there is to worry about when moving abroad?

[wayno 9]

You might be able to get foreign exclusion if you are living abroad for more then 330 days in a 12 month period and not have to pay taxes on any income you earn abroad for that period. If you haven't been away that many days in a consecutive 12 month period you may qualify as a bona-fied resident-----if you can prove long term ties to the other country.

You'll still have to report your income but you may legally be able to avoid paying taxes under one of those methods.

Check ou IRS pub.54.

[scandal 951]

I know it is true for Indiana and Virginia at the very least. Virginia is extremely clear about it: http://www.tax.virginia.gov/site.cfm?alias=residencystatus

Wow. You're right! Sucks to be a Virginian. Remind me never to move there

Residency Issues for Persons Living Abroad

If you are a Virginia resident who accepts employment in another country or moves outside the United States for other reasons (including military orders), the fact that you are living abroad does not mean that you are no longer considered a Virginia resident for tax purposes. Unless you have established residency in another state, you will still be considered a domiciliary resident of Virginia, and will be required to file Virginia income tax returns.

A domiciliary resident of Virginia is one whose legal domicile in the technical sense is in Virginia. Unless an individual acquires a legal domicile in another state, he or she is still a Virginia resident. This applies even if the person is residing in another jurisdiction and may have been residing there for a number of years. The fact that a person has been absent from Virginia, whether in the foreign service of the United States or in the exercise of private enterprise, does not in any way cancel out their Virginia citizenship or legal domicile. As a matter of law, he or she is as much liable to income taxation in Virginia as residents who are physically present in Virginia throughout the year.

Every resident of Virginia, including domiciliary residents, is liable to State income taxation as a resident. This means that they are subject to Virginia income tax on their entire income, whether it came from sources in or outside of Virginia. Those persons qualifying to exclude certain foreign income from their federal returns in accordance with Section 911 of the Internal Revenue Code will receive the same exclusion on their Virginia returns.

[wayno 9]

Different states may have different regs. when I filed for the exclusion in 04 and 05 I was living in Costa Rica and in 04 I was out of the U.S. for 335 days. My U.S. address was in MD but I was getting paid by a Florida company so I did not have to pay any MD taxes. Nor federal taxes as well. Actually the past several years working in Costa Rica getting paid by a new york company I havn't had to pay MD taxes for the income recieved in C.R. though I have had to pay federal taxes since I am only out of the country for 180 days.

The only state income tax I've paid has been for the last several summers working for a MD based company in MD.

[spookyturtle 9,466]

Just pay. We need the money.

[scandal 951]

Just pay. We need the money.

I've got my hand out . Feel free to send a donation, anytime!

[spookyturtle 9,466]

Just pay. We need the money.

I've got my hand out . Feel free to send a donation, anytime!

Time to change your diaper son.

[scandal 951]

Just pay. We need the money.

I've got my hand out . Feel free to send a donation, anytime!

Time to change your diaper son.

stfu, n00b