State taxes?

[London Calling 0]

Hi everyone!

 

Hoping for help with proving that I will reestablish domicile in US after spouse visa approval.

 

I've been abroad 7 years and have filed federal and state taxes all those years as married filing separately. However, once in US we want to buy a house so we are currently paying loads to amend past years as married filing jointly with my husband electing to be treated as a US citizen. 

 

Once these returns come through we will use this information for our I-864. 

 

What's throwing me a bit is the following from i-864 directions "B. Records of paying U.S. state or local taxes;" My accountant is advising that I don't file/amend state taxes as there is no other need to (I don't own property or get any of my income from the US). I would be filing as "nonresident" in my state anyways and we are not "paying" only filing. I am wondering how important it is for state taxes to be filed? Has anyone ran into this helping their case?

 

I've been careful to keep "ties" in other ways, here are some examples. 

 

1. Driving license current

2. Still have my same US bank account (and already starting to transfer funds)

3. Have voted in multiple elections over the years and am a registered voter of my state. My voter registration is affiliated with my permanent address. 

4. Have a retirement fund associated with my state and permanent address. 

5. Have maintained/renewed my teaching license for my state. 

6. Email correspondence with mortgage brokers. 

7. Email correspondence with accountants regarding change to my husband's filing status.

8. Employee hired where we intend to live (My husband has his own company and his first US hire was in the state we intend to move to)

9. Still have same cell phone number/cell phone plan associated with my permanent address. 

 

These are just the start, by the time we submit these documents, I will also probably have email correspondence with schools/childcare for my kids as well as email correspondence with shipping companies. It's possible we may even be approved for a mortgage by then. 

 

However my accountants need to know now if I want to pay for state taxes to be filed. Anyone have ideas or experience with this? How important are the "state and local taxes"? Thanks in advance!

 

 

 

 

 

[Crazy Cat 41,981]

20 minutes ago, London Calling said:

(I don't own property or get any of my income from the US)

You know that you must report income from all sources world-wide, correct?  That also applies to your spouse if he is considered a resident alien for tax purposes (filing jointly).

Edited February 23, 2021 by Lucky Cat

[SusieQQQ 11,586]

9 minutes ago, London Calling said:

with my husband electing to be treated as a US citizen. 

Can you explain this? You either are you aren’t  a citizen - and if you just got a visa for your spouse he presumably isn’t one - what am I missing? 

[London Calling 0]

9 minutes ago, Lucky Cat said:

You know that you must report income from all sources world-wide, correct?  That also applies to your spouse if he is considered a resident for tax purposes (filing jointly).

Yes, all our income is from overseas where we are living and working. All will be reported on federal tax returns. I am curious about state tax returns.

 

[JeanneAdil 6,562]

to amend you would include spouse's income and file form 2555 to exclude up to $105,700

[London Calling 0]

9 minutes ago, SusieQQQ said:

Can you explain this? You either are you aren’t  a citizen - and if you just got a visa for your spouse he presumably isn’t one - what am I missing? 

 

We don't have the visa yet. We are currently applying for a spouse visa, on i-864 step and collecting civil documents. 

Just now, JeanneAdil said:

to amend you would include spouse's income and file form 2555 to exclude up to $105,700

Thanks I'm not worried about the taxes, I think the accountants have all that covered. 

 

I'm curious about how state taxes impact reestablishing domicile?

 

[JeanneAdil 6,562]

2 minutes ago, London Calling said:

 

We don't have the visa yet. We are currently applying for a spouse visa, on i-864 step and collecting civil documents. 

Thanks I'm not worried about the taxes, I think the accountants have all that covered. 

 

I'm curious about how state taxes impact reestablishing domicile?

 

you need residency like a place to live

Driver's licence in that state?

address of parents u use?

US banking account

paying state taxes doesn't mean u live there or intend to 

[London Calling 0]

Just now, JeanneAdil said:

you need residency like a place to live

Driver's licence in that state?

address of parents u use?

US banking account

paying state taxes doesn't mean u live there or intend to 

Okay, excellent, this is what I was wondering. The only reason I ask is because it's listed as one of ways to prove you are living abroad temporarily on form I-864. See below:

 

1. You are living abroad temporarily.

   If you are not currently living in the United States, you must provide proof that your trip abroad is temporary and that you have maintained your domicile in the United States. Examples of proof include:

   1. Your voting record in the United States;

   2. Records of paying U.S. state or local taxes;

   3. Having property in the United States;

   4. Maintaining bank or investment accounts in the United States;

   5. Having a permanent mailing address in the United States; or

   6. Other proof such as evidence that you are a student studying abroad or that a foreign government has authorized a temporary stay. 

We're filing federal taxes, wondering if we need to file state taxes to prove we are serious about returning to the US. 

[JeanneAdil 6,562]

1 minute ago, London Calling said:

Okay, excellent, this is what I was wondering. The only reason I ask is because it's listed as one of ways to prove you are living abroad temporarily on form I-864. See below:

 

1. You are living abroad temporarily.

   If you are not currently living in the United States, you must provide proof that your trip abroad is temporary and that you have maintained your domicile in the United States. Examples of proof include:

   1. Your voting record in the United States;

   2. Records of paying U.S. state or local taxes;

   3. Having property in the United States;

   4. Maintaining bank or investment accounts in the United States;

   5. Having a permanent mailing address in the United States; or

   6. Other proof such as evidence that you are a student studying abroad or that a foreign government has authorized a temporary stay. 

We're filing federal taxes, wondering if we need to file state taxes to prove we are serious about returning to the US. 

yep,  living abroad but not where u will reside in the US

 

[SusieQQQ 11,586]

13 minutes ago, London Calling said:

 

We don't have the visa yet. We are currently applying for a spouse visa, on i-864 step and collecting civil documents. 

Thanks I'm not worried about the taxes, I think the accountants have all that covered. 

 

I'm curious about how state taxes impact reestablishing domicile?

 

So how is he electing to file “as a citizen”, which is what you said? I’m confused. You can’t claim to be a USC when you’re not. That’s illegal. I wasn’t asking about the taxes, I was asking about that claim.

 

 

[JeanneAdil 6,562]

2 minutes ago, SusieQQQ said:

So how is he electing to file “as a citizen”, which is what you said? I’m confused. You can’t claim to be a USC when you’re not. That’s illegal. I wasn’t asking about the taxes, I was asking about that claim.

 

 

He's not a citizen  she says she's been living abroad 

and he is spouse of USC (nonresident alien status) 

https://www.irs.gov/individuals/international-taxpayers/nonresident-alien-spouse

 

I work 6 months a year under a tax attorney filing for foreign workers (as we have VW and OPM and other foreign investors here ) and i do the EIN and ITIN /  this is what i do now part time after i retired

 

[London Calling 0]

10 minutes ago, SusieQQQ said:

So how is he electing to file “as a citizen”, which is what you said? I’m confused. You can’t claim to be a USC when you’re not. That’s illegal. I wasn’t asking about the taxes, I was asking about that claim.

 

 

6013g election 

 

https://www.irs.gov/pub/int_practice_units/JTO9431_02_09.PDF

 

[Crazy Cat 41,981]

2 minutes ago, London Calling said:

6013g election 

 

https://www.irs.gov/pub/int_practice_units/JTO9431_02_09.PDF

 

"Resident alien" and "citizen" are completely different terms......although each is taxed equally. 

[SusieQQQ 11,586]

Ok, so he is electing to be taxed as a resident. That’s different.

 

 

Can someone also please explain to me why MFJ vs MFS makes any difference to getting a house/mortgage? Does the husband somehow get the wife’s credit score because of it? Or what? I’m just trying to figure out exactly what the benefit of all this. It seems like a lot of effort and I’m not sure why? 

59 minutes ago, London Calling said:

However, once in US we want to buy a house so we are currently paying loads to amend past years as married filing jointly

 

[London Calling 0]

Have decided against filing state taxes. Will update as we continue through the process.