Taxes for Americans

[thepool]

Wow !

I thought the UK tax system was complex but now have to admit the American system is vastly superior to ours !

[watcharacters]

The OP needs to research the tax domicile rules for the state he is leaving. As with most questions of law what matters is what the law states, not anyone's common sense. The most aggressive states are CA and VA. VA goes so far as to claim that you continue to owe taxes to the commonwealth until such time as you establish residence in another state. Other states, like CA, count factors such as whether you have property, bank accounts, professional service providers (lawyer, accountant, etc.) or friends in the state. You have the right to vote in the state after you leave, but some states construe the act of voting as evidence of establishing tax domicile.

You need to research the rules for your state and follow them to the letter.

To the OP, if your wife had permanent residence in the US and lived there as your wife there for at least five years with a green card, then she will be able collect Social Security benefits on your earnings, if your earnings qualify you when she has reached the appropriate age.

.

How could you forget the Great State of New York as one of the four most ruthless of the four unforgiving states in the USA?

There are still 9 states with no state income tax.

[watcharacters]

The OP needs to research the tax domicile rules for the state he is leaving. As with most questions of law what matters is what the law states, not anyone's common sense. The most aggressive states are CA and VA. VA goes so far as to claim that you continue to owe taxes to the commonwealth until such time as you establish residence in another state. Other states, like CA, count factors such as whether you have property, bank accounts, professional service providers (lawyer, accountant, etc.) or friends in the state. You have the right to vote in the state after you leave, but some states construe the act of voting as evidence of establishing tax domicile.

You need to research the rules for your state and follow them to the letter.

To the OP, if your wife had permanent residence in the US and lived there as your wife there for at least five years with a green card, then she will be able collect Social Security benefits on your earnings, if your earnings qualify you when she has reached the appropriate age.

[jcnbkk]

You can divorce yourself for your current state by filing a PARTIAL state tax form for the last year of residence.

Then you'll have a case for stopping state filings.

Yes you can vote. Register based on your last voting residence in the USA which will be your voting residence for life unless you repatriate.

You can file online using taxact.com ... and it supports using a foreign address.

If you want to mail in your forms, there is a special address for expat filings.

Deduction stuff, I punt.

I'm following this with interest. What do you mean by a partial state tax form?

[jcnbkk]

as an expat u also need file form 2555 along with your 1040.

I hold residency in Ca an have not filed state returns in over 17 years there. ( have never voted)

since u need file this to get your $96,000 tax exemption you need paperfile ( snail mail), its all on the form where to send.

been doing it for years as i than can than file the FAFSA, so my daughter in unviersity in Ca, gets her grants.

To collect ss u need have worked 40 quarters ( 10 years ) in your life time. ( you will deal with ss office in the Phillippines.)

Make sure u keep less than $10,000 TOTAL in all your foreign bank accounts so you never have to FBAR

so its better to do the combo method for your retirement extension if you have any kind of Pension./ss payments

OK, I'll look up a 2555. What do you mean by hold residency? You still have a Ca. address or property and don't have to pay Ca. tax?

[jcnbkk]

Just use tax software like TaxCut, TurboTax, etc., to file your federal and state taxes. Whether you are still on the hook for state tax depends on your state of residence. You can still vote by requesting an absentee ballot.

http://americansabroad.org/issues/taxation/us-taxes-while-living-abroad-faq/

US Taxes While Living Abroad FAQ

Do I need to file a US tax return? What forms do I use? Can I deduct foreign taxes?... The following FAQ about filing your US taxes even though you live outside the USA was adapted from a contribution by I.J. Zemelman.

I am an American living and working abroad. Do I need to file a US tax return?

Regardless of where you live now, being a United States citizen requires that you file a yearly tax return with the IRS. Green card holders and all US citizens are required to file a US return, no matter where they live, as long as their income (earned in-US and abroad) is just over $9,000. Many people wrongly assume that because they have never owed money to the IRS, they simply dont have to file. Earning anything over $9,350.00 does require you to file, however. The US has treaties with many foreign countries that will reduce or even eliminate actual owed tax. You cannot, however, take advantage of these benefits if you don't file.

Do I need to file a State Tax Return?

As is the case with many legal matters, each US state sets its own rules regarding state taxes and expats. Some states do demand that you file a state return, while others release you when you move away. The rules can be complicated, so be sure to ask your tax preparer before making assumptions as to the requirements of your former home. The most stubborn states are New Mexico, California, Virginia and South Carolina. If you moved abroad from one of those states, it is unlikely that you have been released from the obligation of filing. To read more about this issue see: [/size]State Taxes and the American Expats - Can You Ever Set Yourself Free?

If that link on state taxes is accurate and current I'm screwed. Kinda figured that coming from Ca.

[jcnbkk]

Yes you can deduct your wife and daughter on income tax as they have a SS number. I have been deducting my girlfriend for years using a ITN number. The ITN is used by people who have dependants living outside the US and they do not have a SS number and cannot obtain a SS number. When I applied for mine some years back at the IRS office the very helpful staff knew what I wanted and what forms to file.

You can claim a non citizen (even a girlfriend) living in their home country as a dependent on your taxes?? Are you filing and living abroad or is this even if you sent money?? What did you tell them at the IRS office? I'd like to find those forms.

[el jefe]

as an expat u also need file form 2555 along with your 1040.

I hold residency in Ca an have not filed state returns in over 17 years there. ( have never voted)

since u need file this to get your $96,000 tax exemption you need paperfile ( snail mail), its all on the form where to send.

been doing it for years as i than can than file the FAFSA, so my daughter in unviersity in Ca, gets her grants.

To collect ss u need have worked 40 quarters ( 10 years ) in your life time. ( you will deal with ss office in the Phillippines.)

Make sure u keep less than $10,000 TOTAL in all your foreign bank accounts so you never have to FBAR

so its better to do the combo method for your retirement extension if you have any kind of Pension./ss payments

OK, I'll look up a 2555. What do you mean by hold residency? You still have a Ca. address or property and don't have to pay Ca. tax?

Form 2555 is only required if you are working outside the US. it's not relevant to this thread. Nor is the advice to keep your foreign bank accounts under $10,000 to avoid filing FBAR forms. For most people it's a simple form.

I don't understand either how the above poster claims to maintain CA residency yet never file taxes there.

Interestingly, the OP has never come back to tell us what state he is coming from, yet everyone here is giving their anecdotal evidence of what they've done in their individual situation. Just because you have gotten away without filing a state tax return in the state of your former residence, doesn't mean you aren't required to do so.

Capt Haddock's advice is spot on. Learn the rules for YOUR state and don't just assume that if you moved, you're no longer required to file. (Most states won't accept as an excuse "but I read on ThaiVisa that I wasn't required to file"!) If you're still confused, hire an accountant here in Thailand. First, he will probably know the rules for expats abroad better than your former accountant in the US. Second, if you continue to use your accountant in the US, in many states that is one of the factors used to determine that you have NOT terminated your residency yet.

[LawrenceN]

I used

https://www.freefilefillableforms.com/

the last two years. Payment was automatically withdrawn from an account I keep at a bank in the US. I specified the date of withdrawal, so you can file any time and make the payment on April 14-15.

[GinBoy2]

You can divorce yourself for your current state by filing a PARTIAL state tax form for the last year of residence.

Then you'll have a case for stopping state filings.

Yes you can vote. Register based on your last voting residence in the USA which will be your voting residence for life unless you repatriate.

You can file online using taxact.com ... and it supports using a foreign address.

If you want to mail in your forms, there is a special address for expat filings.

Deduction stuff, I punt.

I'm following this with interest. What do you mean by a partial state tax form?

I'll chime in for Jinthing (slap me around later) a partial return, means that you resided in the State for a partial year. Certainly for my own case the question California asks, did you at anytime during the year 20XX reside in California? If so you are required to file. So, even if you spend for example only 2 days of 2014 as a resident you need to file, but since you use a foreign address on the return that's it for the following year

[Strangebrew]

Ok If you live in a state that has state taxes once you get your long term visa here Send proof back to state tax board, I assume your married cause money you stated is a bit low for retirement visa, You don't need Obamacare so opt out of that Taxes can be done online for free through IRS site same with payment if you owe just signup for payment site before you go cause Mail a bit slow here. If you were offered job here moving expenses would be deductible. As long as you got SS numbers for dependants your ok. But might want to get Expat health insurance here incase needed. Here not like states were person comes first insurance after thought. Keep your pecker in your pants or you might be like some Expats here broke and panhandling. Good luck.

[Strangebrew]

On banking Issue if you use ATM card or Credit Cards get your bank a change of address so you have proof and access to accounts Wells Fargo good bank easy don't need 50.00 Embassy stamp to change information Citibank you need it. Just make sure you always check ATM here your using to see if it has been tampered with Russian Skimmers running amok here.

[CaptHaddock]

The OP needs to research the tax domicile rules for the state he is leaving. As with most questions of law what matters is what the law states, not anyone's common sense. The most aggressive states are CA and VA. VA goes so far as to claim that you continue to owe taxes to the commonwealth until such time as you establish residence in another state. Other states, like CA, count factors such as whether you have property, bank accounts, professional service providers (lawyer, accountant, etc.) or friends in the state. You have the right to vote in the state after you leave, but some states construe the act of voting as evidence of establishing tax domicile.

You need to research the rules for your state and follow them to the letter.

To the OP, if your wife had permanent residence in the US and lived there as your wife there for at least five years with a green card, then she will be able collect Social Security benefits on your earnings, if your earnings qualify you when she has reached the appropriate age.

.

How could you forget the Great State of New York as one of the four most ruthless of the four unforgiving states in the USA?

There are still 9 states with no state income tax.

Not true at all. I moved out of New York to Thailand so I research the tax domicile rules for NYS. You can own property in NYS and spend up to 179 days per year in the state and still not be liable for NYS taxes. That's quite easy compared to CA, for instance. However, income tax rate of 9% for New York State plus the New York City income tax rate of 4% on top of federal put many of us into a very high marginal tax bracket. But we got paid more on the average.

[akentryan]

Turbo Tax at $29.99 plus a bit extra if you need a state tax return. They file electronically and I received a refund, in full, two weeks from the date of filing. Yes I did report my interest earned on Thai bank accounts. Keep in mind that you must also report any foreign bank deposits of $10,000 or more, which necessitates the inclusion of the interest.

[NancyL]

I, and other Americans I know, have had very good experience working with U.S. credit unions from here. I've heard it said that, in general, credit unions are good financial institutions for retirees and I've found a credit union used to dealing with a customers who travel and live overseas has been just wonderful. In my case, it's the credit union that serves the corporate headquarters location of global U.S. corporation, so many of the members travel and/or are working on overseas assignments.

Their VISA card, in particular, is great. The foreign-currency exchange rate is a couple points lower than that normally issued by U.S. banks. Each year the credit union issues a rebate to members of the "profits" of the previous year. They base the rebate on your account activity. So far, the amount credited to our VISA account has been about equal to the foreign-currency exchange rate, which means that we're essentially not paying any exchange fee for charges with our VISA card here. Plus, we can easily track charges on-line, including pending charges on-line, in real time. Seriously. Hubby can watch me "in action", shopping at the neighborhood mall on his laptop from the comfort of our condo. He says that VISA card is like a tracking chip.

[noise]

Yes you can deduct your wife and daughter on income tax as they have a SS number. I have been deducting my girlfriend for years using a ITN number. The ITN is used by people who have dependants living outside the US and they do not have a SS number and cannot obtain a SS number. When I applied for mine some years back at the IRS office the very helpful staff knew what I wanted and what forms to file.

You can claim a non citizen (even a girlfriend) living in their home country as a dependent on your taxes?? Are you filing and living abroad or is this even if you sent money?? What did you tell them at the IRS office? I'd like to find those forms.

I did not see a reply to this, so I will give you my input. I do not what the criteria is for identifying an adult as a dependent for an ITIN when there is no legal relationship. I do not that non-citizen in-laws living abroad can not be claimed.

However, spouses and children (adopted or not) do qualify for ITINs and are allowed to be used for filing jointly and getting deductions.

And that can be extrapolated to Thai widows, for example, drawing survivor benefits, filing yearly, getting personald deductions, etc.

[sturdyd]

Yes..the best thing about online tax preparation is that...with the one I use...your data for this year is available for next year...and you can print it out where ever you are. I use the previous year as a template, and just update a few blocks of information. I did mine too early...but they sent it off the first day IRS was accepting taxes. Took only 3 weeks or so to get a refund in my bank. Great, handy stuff...and not expensive.

Yeah, e-filing is the ticket. Pick a program, stick with it next year, and all the menial stuff takes care of itself. Mine even files my FBAR.

[noise]

As with any extension for filing, automatic or requested, interest is charged beginning from April 15th.

Unless IRS Pub 54 has been revised recently, it says you have the automatic extension to file and pay. But when you do file, you must attach a note stating words to the effect OVERSEAS FILER. I help Thais with their taxes and filing and paying by June has been accepted by the IRS.

[watcharacters]

The OP needs to research the tax domicile rules for the state he is leaving. As with most questions of law what matters is what the law states, not anyone's common sense. The most aggressive states are CA and VA. VA goes so far as to claim that you continue to owe taxes to the commonwealth until such time as you establish residence in another state. Other states, like CA, count factors such as whether you have property, bank accounts, professional service providers (lawyer, accountant, etc.) or friends in the state. You have the right to vote in the state after you leave, but some states construe the act of voting as evidence of establishing tax domicile.

You need to research the rules for your state and follow them to the letter.

To the OP, if your wife had permanent residence in the US and lived there as your wife there for at least five years with a green card, then she will be able collect Social Security benefits on your earnings, if your earnings qualify you when she has reached the appropriate age.

.

How could you forget the Great State of New York as one of the four most ruthless of the four unforgiving states in the USA?

There are still 9 states with no state income tax.

Not true at all. I moved out of New York to Thailand so I research the tax domicile rules for NYS. You can own property in NYS and spend up to 179 days per year in the state and still not be liable for NYS taxes. That's quite easy compared to CA, for instance. However, income tax rate of 9% for New York State plus the New York City income tax rate of 4% on top of federal put many of us into a very high marginal tax bracket. But we got paid more on the average.

.

OK:

My post was not intended to be personal but according to what I've recently read New York state is among the four American states that's the most relentless in going after residents that attempt to avoid paying state income taxes by claiming non residency. California was listed as one of the other three. Sorry, I couldn't find the original article which specifically addressed residency.

Well done for you if you divorced yourself from NY.

http://money.msn.com/taxes/c_galleryregular.aspx?cp-documentid=250574718

Taxes

The 10 worst states for taxes

A state's tax climate can affect not only how far dollars stretch but also whether businesses want to locate there.

By Sheryl Nance-Nash, The Fiscal Times

• 11 of 13

No. 1: New York

And the winner for the worst state for taxes is . . . the Empire State. It's the worst state in the country when it comes to individual income taxes, likely due to its high top marginal tax rate of 8.82%. It ranks 45th for both unemployment insurance taxes and property taxes, and 38th for sales taxes. (It also has the highest tobacco taxes in the country -- $4.35 per pack of cigarettes.) Its best score was 23rd for corporate tax rates. New York was also among the top five outbound states in the United Van Lines migration study.

• Video: Taxes? There's an app for that

More from The Fiscal Times:

• Tax exodus: 5 states that residents are fleeing
• For high-income earners, time for a tax divorce
• The 8 craziest tax deductions approved by the IRS

Edited April 27, 2014 by watcharacters

[CaptHaddock]

The OP needs to research the tax domicile rules for the state he is leaving. As with most questions of law what matters is what the law states, not anyone's common sense. The most aggressive states are CA and VA. VA goes so far as to claim that you continue to owe taxes to the commonwealth until such time as you establish residence in another state. Other states, like CA, count factors such as whether you have property, bank accounts, professional service providers (lawyer, accountant, etc.) or friends in the state. You have the right to vote in the state after you leave, but some states construe the act of voting as evidence of establishing tax domicile.

You need to research the rules for your state and follow them to the letter.

To the OP, if your wife had permanent residence in the US and lived there as your wife there for at least five years with a green card, then she will be able collect Social Security benefits on your earnings, if your earnings qualify you when she has reached the appropriate age.

.

How could you forget the Great State of New York as one of the four most ruthless of the four unforgiving states in the USA?

There are still 9 states with no state income tax.

Not true at all. I moved out of New York to Thailand so I research the tax domicile rules for NYS. You can own property in NYS and spend up to 179 days per year in the state and still not be liable for NYS taxes. That's quite easy compared to CA, for instance. However, income tax rate of 9% for New York State plus the New York City income tax rate of 4% on top of federal put many of us into a very high marginal tax bracket. But we got paid more on the average.

.

OK:

My post was not intended to be personal but according to what I've recently read New York state is among the four American states that's the most relentless in going after residents that attempt to avoid paying state income taxes by claiming non residency. California was listed as one of the other three. Sorry, I couldn't find the original article which specifically addressed residency.

Well done for you if you divorced yourself from NY.

http://money.msn.com/taxes/c_galleryregular.aspx?cp-documentid=250574718

Taxes

The 10 worst states for taxes

A state's tax climate can affect not only how far dollars stretch but also whether businesses want to locate there.

By Sheryl Nance-Nash, The Fiscal Times

• 11 of 13

No. 1: New York

And the winner for the worst state for taxes is . . . the Empire State. It's the worst state in the country when it comes to individual income taxes, likely due to its high top marginal tax rate of 8.82%. It ranks 45th for both unemployment insurance taxes and property taxes, and 38th for sales taxes. (It also has the highest tobacco taxes in the country -- $4.35 per pack of cigarettes.) Its best score was 23rd for corporate tax rates. New York was also among the top five outbound states in the United Van Lines migration study.

• Video: Taxes? There's an app for that

More from The Fiscal Times:

• Tax exodus: 5 states that residents are fleeing
• For high-income earners, time for a tax divorce
• The 8 craziest tax deductions approved by the IRS

I am not going to follow your links, but the text does not support your assertion that NYS is among the most aggressive in performing tax domicile audits. However, that might be the case. But how aggressive NYS is in doing tax domicile audits is quite distinct from how aggressive the rules are that govern tax domicile. The rule I cited, that you are not liable for NYS taxes even if you own property in the state as long as you are not physically present in the state for 180 days is much more lenient than CA for whom ownership of property alone may be sufficient to make you liable for taxes. Now, they may examine people carefully to see if they are excluded from residency according to the rule or not, but that's strict enforcement as opposed to strict regulations. Anyway, your quotes don't address the issue at all.

It's certainly true that NYS taxes are very high. I lived in Manhattan and so had to pay the New York City income tax rate of 4% on top of that as well. So, my marginal rate was quite high for many years. Nevertheless, New York City is a great place to live. During the many years I lived there I never bothered to own a car since New York City has abundant public transportation in addition to taxi cabs. Not owning a car probably saved me $8,000 to $10,000 per year. Whenever I needed to get out of town I would just rent one for a few days.

And then, as I mentioned, salaries are much higher in New York City. Whenever I compared my salary to national surveys that covered my occupation, I felt embarassed by the difference. In addition, I owned an apartment which I sold years later for four times what I paid. All in all, life in New York was a good life, but competitive. If you could succeed, you were likely to do very well.

I never complained about taxes while I was working in New York. I don't support sales taxes generally because they are regressive, but taxes on cigarettes, liquor and gasoline should be as high as possible to reflect the true cost to society and, frankly, to discourage their use in general. Some criminologists think that the most effective means to reducing domestic violence is to increase the tax on beer.

Then, when it was time to retire and I was no longer tied to the city by the need to get a livelihood I was happy to move away from NYS and NYC income taxes forever. I would recommend to any young person to move to NYC in a minute. Definitely among the most stimulating places to live in the US.

YMMV.

Edited April 27, 2014 by CaptHaddock

[Pib]

Wow !

I thought the UK tax system was complex but now have to admit the American system is vastly superior to ours !

After we broke away from the UK a few hundred years ago that gave us the freedom to greatly improve the tax system....and now having a lot of different state tax systems to combine with the federal tax system really makes it the perfection of complexity. Thank you UK for giving us this freedom to improve.

[rossabout]

Thank you all for the repies

I am coming from Ca. For state tax i file for just the months I lived here.

I will take the great advice about online filing for free

I had a few emails regarding health insurance. Does anyone have suggestions for low cost insurance in Thailand. Currently have blue Cross in USA. But will cancel when we move.

Other questions asked, I have plenty of money to not worry about the $400,000 in savings, So I should not have to prove monthly income as it will change like winds and the tide from month to month.

We own the land and the house in Thailand so our monthly housing costs will be just water, power and gas.

For food, housing expenses and sundries we spend less than $500 a month in the USA. So Thailand has to be cheaper. I will keep my life insuracnce for the wife. The company has already given me everything I will need when I move.

Still would like advice from someone who has used the Ma Ta Put office in Rayong.

[mahjongguy]

As with any extension for filing, automatic or requested, interest is charged beginning from April 15th.

Unless IRS Pub 54 has been revised recently, it says you have the automatic extension to file and pay. But when you do file, you must attach a note stating words to the effect OVERSEAS FILER. I help Thais with their taxes and filing and paying by June has been accepted by the IRS.

Yes, you can pay at an extended time but you'll owe interest from April 15th.

"You can be granted an extension of time to file your return. In some circumstances, you can also be granted an extension of time to file and pay any tax due (see Automatic 2 Month Extension below). However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid."

http://www.irs.gov/Individuals/International-Taxpayers/U.S.-Citizens-and-Resident-Aliens-Abroad---Extensions-of-Time-to-File

[skatewash]

Someone asked for the list of greedy states previously. That is, states that continue to tax you (or require that you continue to file state income tax returns) after you no longer live or earn income in the state. While I haven't found such a list you wouldn't go wrong including on such a list these states: Maryland, Virginia, California, South Carolina, and New Mexico. That's not a comprehensive list, and the degree of greediness varies by each individual state. To be certain you need to research your particular state and how it treats former residents who are now overseas.

Virginia and Maryland, for instance, will continue to tax you (or require you to file state income taxes) if you move overseas as a former resident of those states. This brings up the list of good states, that is, states which have no state income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. If you live in either VA or MD it could be worth your while to move to a state with no income taxes and establish residence there, before you move overseas.

For example, if you live in Maryland and will be moving to Thailand as an expat, it would be smart to move to Florida (for example) and establish residence there. Establish ties to your new state (get a driver's license, voter registration, sign lease, open banking account, etc.) and eliminate ties to your old state (sell house, terminate leases, close accounts, ask to be taken off the voter rolls, etc.). Also, in Florida you can file a Declaration of Domicile with the county court where you reside that explicitly states that you are no longer a resident of your former state (e.g., Maryland) and are now a resident of your new state (e.g., Florida). Basically, you are building a case that will support your contention that you are a resident of a state that doesn't impose state income tax, and no longer a resident of a state that does. Then you can move overseas from your new state. Of course, you also file a partial year state tax return in your previous state and use the address in your new state as you current address.

Someone posted this link earlier. Some good information there: http://blogs.angloinfo.com/us-tax/2012/08/20/avoiding-us-state-income-taxes-when-residing-overseas/

[granuaile]

As with others I use online tax services, using my address here. My income is not subject to state taxes because of a pretty generous exclusion on pensions, so I don't have to file state returns, but early on in a question to the state revenue department I was told that you remain a resident for tax purposes even if living outside the U.S. - they said that I would have to physically relocate to another state. However due to the pension exclusion it is a moot point for me. I voted by absentee ballot in 2012, and it was pretty straightforward (other than my registered mail containing it got stuck in NYC for 2 weeks and only delivered after I contacted the USPS).

[slipperylobster]

The OP needs to research the tax domicile rules for the state he is leaving. As with most questions of law what matters is what the law states, not anyone's common sense. The most aggressive states are CA and VA. VA goes so far as to claim that you continue to owe taxes to the commonwealth until such time as you establish residence in another state. Other states, like CA, count factors such as whether you have property, bank accounts, professional service providers (lawyer, accountant, etc.) or friends in the state. You have the right to vote in the state after you leave, but some states construe the act of voting as evidence of establishing tax domicile.

You need to research the rules for your state and follow them to the letter.

To the OP, if your wife had permanent residence in the US and lived there as your wife there for at least five years with a green card, then she will be able collect Social Security benefits on your earnings, if your earnings qualify you when she has reached the appropriate age.

.

How could you forget the Great State of New York as one of the four most ruthless of the four unforgiving states in the USA?

There are still 9 states with no state income tax.

Not true at all. I moved out of New York to Thailand so I research the tax domicile rules for NYS. You can own property in NYS and spend up to 179 days per year in the state and still not be liable for NYS taxes. That's quite easy compared to CA, for instance. However, income tax rate of 9% for New York State plus the New York City income tax rate of 4% on top of federal put many of us into a very high marginal tax bracket. But we got paid more on the average.

.

OK:

My post was not intended to be personal but according to what I've recently read New York state is among the four American states that's the most relentless in going after residents that attempt to avoid paying state income taxes by claiming non residency. California was listed as one of the other three. Sorry, I couldn't find the original article which specifically addressed residency.

Well done for you if you divorced yourself from NY.

http://money.msn.com/taxes/c_galleryregular.aspx?cp-documentid=250574718

Taxes

The 10 worst states for taxes

A state's tax climate can affect not only how far dollars stretch but also whether businesses want to locate there.

By Sheryl Nance-Nash, The Fiscal Times

• 11 of 13

No. 1: New York

And the winner for the worst state for taxes is . . . the Empire State. It's the worst state in the country when it comes to individual income taxes, likely due to its high top marginal tax rate of 8.82%. It ranks 45th for both unemployment insurance taxes and property taxes, and 38th for sales taxes. (It also has the highest tobacco taxes in the country -- $4.35 per pack of cigarettes.) Its best score was 23rd for corporate tax rates. New York was also among the top five outbound states in the United Van Lines migration study.

• Video: Taxes? There's an app for that

More from The Fiscal Times:

• Tax exodus: 5 states that residents are fleeing
• For high-income earners, time for a tax divorce
• The 8 craziest tax deductions approved by the IRS

e

Not only that, but if you are unfortunate enough to live where I was born (Syracuse New York) you will notice two other important facts.

1. Voted by Playboy Magazine as having the Ugliest gals of the top 50 cities in America.

2. Most years, wins the Snowball award for snowiest "City" in America. (Measured by inches of snowfall).

3. Old people get "fined" for not clearing their sidewalks of snow.....city refuses to help them.

[TallGuyJohninBKK]

You have the right to vote in the state after you leave, but some states construe the act of voting as evidence of establishing tax domicile.

I was just yesterday reading federal info re federal election voting for Americans overseas.

And the federal info specifically stated that voter registration in a state, alone as a factor, cannot be used to establish state tax status.

However, it went on to add, voter registration in a state can be considered along with other ties/connections, if they exist, to establish state tax status.

So as noted above, each state has its own policies/rules about what constitutes having a taxable presence. California tends to be one of the more aggressive states in that regard.

But as noted above, for many years now, just having a government employment pension earned working for the state of CA does not create a CA state tax liability for someone who now is living in another state or outside the U.S.

[TallGuyJohninBKK]

The State section is a little misleading I think, at least for California, I can't comment on the rest. Yes, if you lived in California for any portion of the reporting year before you moved overseas you absolutely are required to file a CA return. After that, no requirement

I don't believe that description of CA's state tax policies is correct. It's not quite so simple as just move overseas and you're done.

Last time I checked, a person could physically spend the entire tax year living outside the state of CA and still be considered to have a state tax liability -- if enough other factors were present, things such as real estate holdings, business relationships, vehicle registrations, etc etc. There was quite a CA Franchise Tax Board laundry list of potential ties that could be considered. (And I see the Captain did a post earlier in this thread that quoted from one of the FTB's publications on the subject.)

Edited April 27, 2014 by TallGuyJohninBKK

[GinBoy2]

Well I think from all of this we can collectively agree, as one of our former colonial masters pointed out in an earlier post..dammit our tax system is complicated. Ultimately the feds are the ones you really need to worry about, and perversely it seems they are the least of the problems. Maybe someone needs to tell the Tea Party, forget the federal government, go scrap the States...they really are a pain in the bureaucratic ass! LOL

[el jefe]

Ok If you live in a state that has state taxes once you get your long term visa here Send proof back to state tax board, I assume your married cause money you stated is a bit low for retirement visa, You don't need Obamacare so opt out of that Taxes can be done online for free through IRS site same with payment if you owe just signup for payment site before you go cause Mail a bit slow here. If you were offered job here moving expenses would be deductible. As long as you got SS numbers for dependants your ok. But might want to get Expat health insurance here incase needed. Here not like states were person comes first insurance after thought. Keep your pecker in your pants or you might be like some Expats here broke and panhandling. Good luck.

As long as we're going off on so many tangents we might as well present correct info.

If a taxpayer is going to claim the Foreign Earned Income Exclusion ($99,200 for 2014), moving expenses to Thailand must be allocated to the related foreign income. So unless ones annual salary is above that limit, there's no tax benefit to the moving expenses.

http://www.irs.gov/Individuals/International-Taxpayers/Moving-Expenses-to-and-from-the-United-States

Edited April 27, 2014 by el jefe