We talked a lot about what to do with Federal Tax system when a US tax resident moves away from the US. One other consideration we often forget is that there is another taxing authority in the US – the states. Furthermore, all states plus the District of Columbia have their own tax system and do not always take into account implication of global movement.
Since the question of how to deal with state income tax has come up a few times from my readers, I decided to share a summary of what you need to consider about exiting State tax system when you move overseas by state.
The table below gives you the basic guideline from each of the state’s income tax publication. Note that some states may have private rulings or case laws that pertain to US citizens moving overseas from the state that are not included here. I’ll add them as I run across them in the future.
How to stop paying state tax when I move overseas?
Here’re some high-level view to consider before you dig into the rule in your state:
First, people living in the US move across state lines within the country all the time, so every state has well-documented rules on how you show the state that you’ve moved and can stop filing return in that state. Often you can simply stop filing in the state if you don’t meet requirement. However, since most people move in the middle of the year, filing part-year return normally signals the exit.
Second, even without being physically present in the state, you may be subject to income derived from the state (such as rental income) or elsewhere if you are considered domiciled. Each state has its own definitions and rules on taxing domiciliary.
Third, state tax authority usually has the information that you’ve filed federal tax return using a home address in the state. Don’t be surprised to receive a letter from the state tax authority asking why you didn’t file state tax return. Just be prepared to prove that you meet all requirements that exempt you from filing or paying state tax if that applies to you. Note that not every state counts moving overseas as a valid reason to exit the state tax system.
If you have experience / questions about dealing with any specific state, feel free to share in the comment section.
Acronyms used:
FYR- Full-Year Resident
PYR- Part-Year Resident
NR- Nonresident
Alabama
Who must file a tax return and pay taxes?
Individuals domiciled within Alabama (residents) are taxable on their income, whether earned within or without Alabama.
Must file two returns if a resident moves away mid taxable year- one as resident and another as a nonresident.
https://revenue.alabama.gov/wp-content/uploads/2017/05/810-3-2-.01.pdf
How to stop filing a tax return or paying taxes when you move overseas?
If an Alabama resident accepts employment in a foreign country for a definite or indefinite period of time with the intent of returning to the United States, the individual remains an Alabama resident and all income, wherever earned, is subject to Alabama income tax.
https://revenue.alabama.gov/wp-content/uploads/2021/01/20f40bk.pdf
Alaska
No income tax.
Arizona
Who must file a tax return and pay taxes?
Must file as a resident if
- you are in Arizona other than for a temporary or transitory reason
- domiciled in Arizona even if you are away temporarily, or
- spend more than an aggregate of 9 months within Arizona
You are a NR if you are not a resident and must report Arizona source income.
https://azdor.gov/sites/default/files/PROCEDURES_INDIV_1992_itp92-1.pdf
PYR must file a PYR return.
Downloadable instructions- https://azdor.gov/forms/individual/nonresident-personal-income-tax-form-fillable
How to stop filing a tax return or paying taxes when you move overseas?
Must establish a new domicile. A new residence or domicile can be acquired only by the concurrence of an intention to establish a new residence or domicile and acts evidencing such an intention.
https://azdor.gov/sites/default/files/PROCEDURES_INDIV_1992_itp92-1.pdf
Arkansas
Who must file a tax return and pay taxes?
You are a resident if you lived in Arkansas all year or maintained a domicile or a Home of Record in Arkansas during the year.
FYR must file a tax return if your gross income is above the set threshold.
NR who received any gross income from Arkansas sources must file a return.
PYR who received any gross income while an Arkansas resident must file a return.
File as a NR if you did not make your domicile in Arkansas and file as a PYR if you established your domicile in Arkansas or moved out of Arkansas.
How to stop filing a tax return or paying taxes when you move overseas?
You must change your domicile by moving to a new location which you intend to make your permanent home. Working in foreign country does not constitute a change of your domicile.
California
Who must file a tax return and pay taxes?
You are a resident if “you have the closest connections” in California.
If you’re resident of a foreign country and perform services in California and/or receive income from California sources, you may have to file in California even if you don’t have to file federally.
https://www.ftb.ca.gov/forms/2019/2019-1031-publication.pdf (p.10)
How to stop filing a tax return or paying taxes when you move overseas?
Your absence from California cannot be temporary or transitory to exit (ex: if you leave your family in California to work overseas for 16 mon with the intention of coming back to California, you are a resident during your absence from the state).
You must change your domicile: abandon your prior domicile, physically move and reside in a new locality, have the intent to remain in the new locality permanently through actions.
Safe Harbor rule for foreign employment:
An individual domiciled in California who is outside California under an employment-related contract for an uninterrupted period of at least 546 consecutive days will be considered a nonresident unless the individual has $200,000+ intangible income in a year or the reason for the absence is to avoid income tax.
Colorado
Who must file a tax return and pay taxes?
Must file as a resident if you are domiciled or a “statutory” resident based on your voter/vehicle registration, property ownership, or residence of your family members. You are a resident also if you maintain a permanent place of abode in Colorado and spend more than 6 months of the tax year in Colorado.
https://www.colorado.gov/pacific/sites/default/files/Income6.pdf
Living out of the country- Colorado residents must file as Colorado FYR no matter how long you are out of the US. All foreign income exempt federally is exempt in Colorado. https://tax.colorado.gov/part-year-and-nonresident
How to stop filing a tax return or paying taxes when you move overseas?
Living out of the country- You can abandon your Colorado domicile and become permanent residents of a foreign country and not file Colorado tax. Must file a Colorado return if you had Colorado sourced income. https://tax.colorado.gov/part-year-and-nonresident
A person on a temporary visa is not a domiciliary except “six-month rule” may apply.
https://www.sos.state.co.us/CCR/GenerateRulePdf.do?ruleVersionId=7212&fileName=1%20CCR%20201-2
Connecticut
Who must file a tax return and pay taxes?
Must file as a resident if your permanent legal residence was Connecticut or your permanent place of abode was maintained in Connecticut and you spent more than 183 days in Connecticut.
You’re a nonresident if your permanent place of abode is not maintained in Connecticut (but you could have legal residence in Connecticut).
Must file as PYR if you moved in/out of Connecticut; or as a NR if you have income in Connecticut above a threshold.
Also, if you are a NR with Connecticut source income and meet the gross income test, you must file a CT return even if the income is exempt from federal taxation by a treaty.
https://portal.ct.gov/DRS/Individuals/Individual-Tax-Page/Nonresidents-wCT-Source-Inc
How to stop filing a tax return or paying taxes when you move overseas?
You can have only one domicile although you may have more than one place to live. Your domicile does not change until you move to a new location and definitely intend to make your permanent home there.
https://portal.ct.gov/DRS/Individuals/Individual-Tax-Page/Nonresident-Alien
Delaware
Who must file a tax return and pay taxes?
You must file as a resident if you are either:
1) domiciled in Delaware for any part of the year, or
2) maintain a place of abode in Delaware and spend more than 183 days.
NR must file if you have any gross income from DE source.
PYR must file if you had any income while a resident, or had any Delaware income while a NR.
https://revenuefiles.delaware.gov/2020/TY20_200-01I.pdf
How to stop filing a tax return or paying taxes when you move overseas?
Must establish new domicile to exit from Delaware domicile.
If you were outside the U.S. for at least 495 days in the last 18 consecutive months AND did not maintain a place of abode in Delaware where you, your spouse/child/parents were present for more than 45 days, you’re not a resident (unless you are employed by the military or government).
District of Columbia
Who must file a tax return and pay taxes?
Must file as a resident if you are domiciled in D.C. at any time of the year; or maintained a place of abode in D.C. for more than an aggregate of 183 days even if your permanent home was outside D.C.
Must also file if you are a PYR, but the tax will be prorated.
How to stop filing a tax return or paying taxes when you move overseas?
Any individual not a resident of the District” is not subject to tax on the whole or any portion of their personal income.
https://code.dccouncil.us/dc/council/code/sections/1-206.02.html
To change your domicile, you must: demonstrate your physical presence, intent to abandon your old domicile, and remain in the new one for an indefinite period of time. https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2020_D-40_Booklet_1.pdf
Florida
No income tax.
Georgia
Who must file a tax return and pay taxes?
You must file in Georgia if your legal residence is Georgia, even if you are absent.
PYR/NR who work in Georgia or receive income in Georgia must file.
https://dor.georgia.gov/filing-requirements
How to stop filing a tax return or paying taxes when you move overseas?
NR are not required to file if you’re a legal resident of another state and your income is lesser than the set threshold.
Hawaii
Who must file a tax return and pay taxes?
Must file if you are domiciled in HI or domiciled elsewhere but you spend more than 200 days in Hawaii (unless there is evidence that the individual maintained a permanent place of abode outside Hawaii and was in Hawaii for a temporary or transitory purpose).
NR are taxed on Hawaii source only.
https://files.hawaii.gov/tax/forms/2020/n11ins.pdf
How to stop filing a tax return or paying taxes when you move overseas?
Hawaii resident working in a foreign country will remain a Hawaii resident unless permanent resident status is granted by the foreign country.
To create a new domicile, you must abandon your old domicile, intend to establish a new domicile, and have actual physical presence in the new domicile.
Write “FINAL RETURN” on top when giving up Hawaii residency.
Idaho
Who must file a tax return and pay taxes?
Must file as a resident if you are domiciled or kept a home in Idaho and spent more than 270 days in the Idaho home.
Must file as a PYR if you lived in Idaho for more than one day for more than a temporary reason
NR are taxed only on Idaho income
Noncitizens– NR alien must file when gross income from Idaho exceeds a limit; resident aliens file the same as US citizens.
https://tax.idaho.gov/i-1120.cfm
How to stop filing a tax return or paying taxes when you move overseas?
For changing your domicile, evidence can include: where your family lives, your involvement in a business, where/how you spend time during the year, where you keep items, driver’s license and more.
Illinois
Who must file a tax return and pay taxes?
Must file as a resident if you are domiciled in Illinois or intend to return to Illinois after temporary absences (including residence in a foreign country)
https://www2.illinois.gov/rev/forms/incometax/documents/currentyear/individual/il-1040-instr.pdf
NR must file if Illinois income is enough to have a tax liability or you want a refund of Illinois withholding.
https://www2.illinois.gov/rev/questionsandanswers/pages/369.aspx
How to stop filing a tax return or paying taxes when you move overseas?
An individual domiciled in Illinois loses Illinois domicile by:
- locating elsewhere with the intention of establishing the new location as his/her domicile; and
- abandoning any intention of returning to Illinois.
https://www.ilga.gov/commission/jcar/admincode/086/086001000J30200R.html
Indiana
Who must file a tax return and pay taxes?
Must file as a resident if
- domiciled in Indiana
- maintain permanent residence in Indiana,
- spend more than 183 days of the taxable year in Indiana
- have an estate/trust with situs in Indiana
https://www.in.gov/dor/files/reference/ib55.pdf
File as a FYR if you maintained a legal residence in Indiana from Jan. 1 to Dec. 31 (even if you were temporarily away for work, etc.)
https://www.in.gov/dor/individual-income-taxes/individual-income-tax-overview/
How to stop filing a tax return or paying taxes when you move overseas?
To establish a new domicile, you must be physically present and have intent to establish a home elsewhere (and you can’t have the intent to leave that place). Proof of intent can be: property, voter registration, vehicle registration, and more
Iowa
Who must file a tax return and pay taxes?
Must file as a resident if your permanent place of abode in Iowa is established or you are domiciled in Iowa.
You are domiciled in Iowa even if you have residence in Iowa for less than 183 days, or have Iowa voter registration, drivers’ license, etc.
Must file as NR if net Iowa income is above a limit.
https://www.legis.iowa.gov/docs/iac/rule/11-02-2011.701.38.17.pdf
How to stop filing a tax return or paying taxes when you move overseas?
To leave Iowa domicile, do not:
- claim homestead credit or military exemption on Iowa home
- have voter registration in Iowa
- have Iowa driver’s license
- be in Iowa less than 183 days
- maintain a place of abode outside Iowa where you reside at least 183 days of the year
https://www.legis.iowa.gov/docs/iac/rule/11-02-2011.701.38.17.pdf
Kansas
Who must file a tax return and pay taxes?
Must file as a resident if you live in Kansas, regardless of where you are employed.
You are still resident if you are away but have the intention of returning.
Must file as a NR if you have Kansas income regardless of the amount.
https://www.ksrevenue.org/pdf/ip20.pdf (p.3)
How to stop filing a tax return or paying taxes when you move overseas?
Kansas domicile is abandoned on the date that the person leaves the state without any intention to return to Kansas.
Kentucky
Who must file a tax return and pay taxes?
Must file as a resident if you are domiciled in Kentucky (have permanent residence). You are also a resident if you are NOT domiciled in Kentucky but live in Kentucky for more than 183 days.
If you move out, you must report all income while a resident and only Kentucky source income when you are a NR.
https://revenue.ky.gov/Forms/Form%20740-NP%20Instruction%20Packet%20(1-2021).pdf (p. 9)
How to stop filing a tax return or paying taxes when you move overseas?
To stop filing in Kentucky, you must change your domicile with an intent to change your domicile, actual removal from Kentucky and a new place of abode. However, if you return to Kentucky within 6 months, you are considered a Kentucky resident.
Maine
Who must file a tax return and pay taxes?
Must file as a resident if you have permanent legal residence or are domiciled in Maine, and there is no limit to the length of temporary absence from Maine.
https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/residency_guidance_2020.pdf
How to stop filing a tax return or paying taxes when you move overseas?
Foreign Safe Harbor- even if you are domiciled in Maine, you are a NR if all three below are satisfied:
- in a foreign country for at least 450 days out of 548 days
- not present in Maine (nor spouse/minor child has a permanent place of abode) for more than 90 days during the 548 period
- within the 548 days or the nontaxable portion of the year, you are not in Maine for the same ratio as 90:548.
(https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/residency_guidance_2020.pdf (p.5-6)
Louisiana
Who must file a tax return and pay taxes?
Must file as a resident if you are domiciled, reside, or have a permanent residence in Louisiana or have a residence in Louisiana for more than 6 months.
https://revenue.louisiana.gov/Faq/Details/1288#topOfPage
PYR have the option to file a resident or NR return, whichever is more beneficial. https://revenue.louisiana.gov/TaxForms/IT540i(2020).pdf (p.2)
How to stop filing a tax return or paying taxes when you move overseas?
Must prove the change of domicile with documentation (another state voter registration, car registration, etc.) Temporary absence is not enough.
Maryland
Who must file a tax return and pay taxes?
Must file as a resident if you are domiciled or live outside Maryland and had a place of abode in Maryland for more than 6 months of the tax year.
FYR if you are physically present in Maryland for 183 days or more.
File as PYR when you abandon Maryland residency.
https://www.marylandtaxes.gov/individual/income/filing/index.php (“Determining Residency Status”)
How to stop filing a tax return or paying taxes when you move overseas?
If you cannot legally establish a domicile in a foreign country or your presence in that country is conditional, a new domicile isn’t established even if there is intent. If a new domicile is established, you must be physically present there.
Massachusetts
Who must file a tax return and pay taxes?
Must file as a resident if domiciled in Massachusetts or domiciled outside Massachusetts but you have a permanent place of abode in Massachusetts or spent more than 183 days in Massachusetts.
https://www.mass.gov/service-details/learn-about-legal-and-residency-status-in-massachusetts
How to stop filing a tax return or paying taxes when you move overseas?
Residents working overseas- Massachusetts does NOT allow foreign earned income exclusion. Tax on income earned in Canada or provinces can claim credit.
If you are a NR, your Massachusetts source income is excluded if:
- you are a foreign citizen, and
- the income is excluded from federal gross income under a federal income tax treaty
https://www.mass.gov/service-details/learn-about-legal-and-residency-status-in-massachusetts
Michigan
Who must file a tax return and pay taxes?
An individual domiciled in this state is subject to a tax upon all taxable income from any source whatsoever, except that attributable to another state.
Foreign earned income for a Michigan resident is not taxed but all other income must be reported to Michigan. IRC Section 911 election does not terminate your Michigan domicile.
https://www.michigan.gov/documents/RAB2002-05_96120_7.pdf
You are domiciled in Michigan if:
- you have a permanent home and intend to return to Michigan; or
- live in the state for at least 183 days.
You must file as a resident and NR in the year of your domicile is terminated.
How to stop filing a tax return or paying taxes when you move overseas?
A new domicile must be established to be nonresident. To establish a new domicile, all of the following must occur:
- the specific intent to abandon the old domicile
- the intent to acquire a specific new domicile
- actual physical presence in the new state of domicile
Minnesota
Who must file a tax return and pay taxes?
You must file as a NR if
- you are a permanent resident of another state/country,
- you spent less than 183 days in Minnesota, and
- your Minnesota gross income is over the requirement ($12,400 in 2020)
https://www.revenue.state.mn.us/nonresidents
How to stop filing a tax return or paying taxes when you move overseas?
Foreign income exclusion- Minnesota matches the federal exclusion if you claim it federally AND you aren’t homesteading property in Minnesota. You must revoke the homestead status within 3 months of leaving the U.S.
https://www.revenue.state.mn.us/federal-foreign-income-exclusion
Mississippi
Who must file a tax return and pay taxes?
You must file as a resident even if you are temporarily absent if you maintain a home, are registered to vote, or enjoy the homestead exemption.
File as PYR if you move out- you must file as PYR and NR return that year.
You are only taxed on the income earned while a resident of Mississippi – deductions and exemptions are prorated.
A Mississippi resident working in a foreign country on a temporary or transitory basis must report the total gross income
https://www.dor.ms.gov/Provider%20Forms/80100181.pdf (p. 4)
How to stop filing a tax return or paying taxes when you move overseas?
Must establish a new legal residence elsewhere. Changes in driver’s license, vehicle tags, voter registration, and property taxes show intent to change your legal residence.
Missouri
Who must file a tax return and pay taxes?
Must file as a resident if you are domiciled in Missouri, or if you are NOT domiciled in Mississippi but did have a permanent living quarter in Missouri and spent more than 183 days in Missouri.
As a NR (if you do not have a permanent place of abode, maintain a permanent place of abode elsewhere, don’t spend more than 30 days in Missouri even if domiciled), you may be able to claim a Missouri income percentage, reducing your Missouri tax liability by taxing you only on your Missouri source income.
If you are a PYR, you have the option to take either the Missouri resident credit or the Missouri income percentage, whichever is to your benefit.
https://dor.mo.gov/personal/nonresident/
How to stop filing a tax return or paying taxes when you move overseas?
You don’t have to file a Missouri return if you are not required to file a federal return. Even if you have to file federally, you may not have to file in Missouri if:
- you are a resident and have less than $1,200 of Missouri adjusted gross income;
- you are a nonresident with less than $600 of Missouri income; or
- your Missouri adjusted gross income is less than the amount of your standard deduction plus your personal exemption.
Montana
Who must file a tax return and pay taxes?
Must file as a resident if you are domiciled or maintain a permanent home in Montana.
Must file as FYR, PRY or NR if you have Montana income and if your federal income is over a set threshold.
https://app.mt.gov/myrevenue/Endpoint/DownloadPdf?yearId=1044
How to stop filing a tax return or paying taxes when you move overseas?
Must move and establish your residency in another state.
https://app.mt.gov/myrevenue/Endpoint/DownloadPdf?yearId=1044
Nebraska
Who must file a tax return and pay taxes?
Must file as a resident if you are domiciled in Nebraska, physically present and maintain a permanent place of abode for an aggregate of more than 6 months. You are also a resident if you are domiciled elsewhere but are present in Nebraska for at least 183 days during the tax year.
NR and PYR with Nebraska income must file in Nebraska.
https://revenue.nebraska.gov/sites/revenue.nebraska.gov/files/doc/info/8-645.pdf
How to stop filing a tax return or paying taxes when you move overseas?
Any citizen residing outside the US whose last domicile in the US was Nebraska will continue to be a Nebraska resident until the person ceases to be US citizen, establishes residence as a permanent resident alien in a foreign country or re-establishes another domicile with in the US.
https://revenue.nebraska.gov/about/legal-information/regulations/chapter-22-individual-income-tax, 001.03A
Nevada
No income tax.
New Jersey
Who must file a tax return and pay taxes?
If you had New Jersey income during residency and nonresidency, you file both returns. You must change your domicile to file as PYR or NR.
You are a NR if:
- you did not maintain a permanent home in New Jersey
- had a permanent home outside New Jersey, and
- didn’t spend more than 30 days in New Jersey (even if domiciled there- chart on pg 2 of https://www.state.nj.us/treasury/taxation/pdf/current/1040nri.pdf).
You are also a NR if not domiciled in New Jersey and spent 183 days or less. https://www.state.nj.us/treasury/taxation/njit24.shtml
How to stop filing a tax return or paying taxes when you move overseas?
You must move to a new location with the intent to establish your permanent home there and to abandon your New Jersey domicile. Moving to a new location, even for a long time, does not change your domicile if you intend to return to New Jersey.
https://www.state.nj.us/treasury/taxation/pdf/current/1040nri.pdf
New Mexico
Who must file a tax return and pay taxes?
Must file as a resident if:
- you are domiciled in New Mexico for the entire year, or
- you are physically present in New Mexico for 185 days or more during the tax year regardless of your domicile.
Every person with New Mexico income who is required to file federally must file in New Mexico (includes foreign nationals (pg. 20)
https://s3.amazonaws.com/realFile34821a95-73ca-43e7-b06d-fad20f5183fd/53840817-1b4e-45fe-9757-100fe4be6013?AWSAccessKeyId=AKIAJBI25DHBYGD7I7TA&Expires=1616874126&Signature=DIzcThh7rxJBQWqo0IXhggCee6A%3D&response-content-disposition=inline%3B%20filename%3D%222020pit-1-ins.pdf%22&response-content-type=application%2Fpdf (above is a downloadable file from https://www.tax.newmexico.gov/individuals/online-services-overview/personal-income-tax-forms/)
How to stop filing a tax return or paying taxes when you move overseas?
If you go out of state/overseas, you have to show that you definitely do not intend to return to New Mexico.
https://s3.amazonaws.com/realFile34821a95-73ca-43e7-b06d-fad20f5183fd/53840817-1b4e-45fe-9757-100fe4be6013?AWSAccessKeyId=AKIAJBI25DHBYGD7I7TA&Expires=1616874126&Signature=DIzcThh7rxJBQWqo0IXhggCee6A%3D&response-content-disposition=inline%3B%20filename%3D%222020pit-1-ins.pdf%22&response-content-type=application%2Fpdf (above is a downloadable file from https://www.tax.newmexico.gov/individuals/online-services-overview/personal-income-tax-forms/)
New York
Who must file a tax return and pay taxes?
You must file as a resident if you are domiciled in New York or have a permanent place of abode in New York all year and spend 184 days or more in New York even if you are not domiciled in New York.
https://www.tax.ny.gov/pit/file/pit_definitions.htm
How to stop filing a tax return or paying taxes when you move overseas?
Even if you are domiciled in New York, you are NOT a resident if:
- A) you have no permanent place of abode in NY and have a permanent place of abode outside New York and spent 30 days or less in New York; or
- B) you are in a foreign country for at least 450 days during any period of 548 days, and you, your spouse and your minor child spent 90 days or less in New York during the 548 days, and (the number of days as a NR divided by 548) times 90 equals the maximum number of days allowed in New York
(see the formula here: https://www.tax.ny.gov/pit/file/pit_definitions.htm)
North Carolina
Who must file a tax return and pay taxes?
Must file as a resident if you are domiciled in North Carolina or reside in North Carolina other than for a temporary or transitory purpose. Anyone present for more than 183 days is a resident unless there is a proof of nonresidency. https://www.ncleg.net/EnactedLegislation/Statutes/PDF/BySection/Chapter_105/GS_105-153.3.pdf (link from https://www.ncdor.gov/taxes-forms/individual-income-tax/frequently-asked-questions-about-your-nc-individual-income-tax-return)
Must file as NR/PYR in North Carolina if you have income from 1) ownership in property in North Carolina
2) a business/trade in North Carolina, or
3) gambling activities if your total gross income from all sources exceeds a set threshold.
https://www.ncdor.gov/taxes-forms/individual-income-tax/nonresidents-and-part-year-residents
How to stop filing a tax return or paying taxes when you move overseas?
Must establish a definite domicile elsewhere to abandon North Carolina domicile. You are considered a resident of North Carolina until then.
https://www.ncleg.net/EnactedLegislation/Statutes/PDF/BySection/Chapter_105/GS_105-153.3.pdf
North Dakota
Who must file a tax return and pay taxes?
Must file as a resident if you are domiciled in North Dakota or not domiciled but maintain a permanent place of abode in North Dakota and spend more than 7 months (=210 days) of the tax year in North Dakota.
A NR who has to file federally and has any income from North Dakota must file in North Dakota.
https://www.nd.gov/tax/data/upfiles/media/individual-income-tax-booklet-2020.pdf
How to stop filing a tax return or paying taxes when you move overseas?
Must change your legal residence (which is based on your intent and your actions.)
“Except where an income tax treaty between the US and a foreign country specifically exempts income from taxation by a U.S. state, income tax treaties between the U.S. and foreign countries do not apply for North Dakota.”
(https://www.nd.gov/tax/data/upfiles/media/individual-income-tax-booklet-2020.pdf (p.5)
Ohio
Who must file a tax return and pay taxes?
Must file as a resident if you are domiciled in Ohio (“domiciled” and “resident” mean the same thing)- you are presumed to be a resident if you live/have abode in Ohio.
https://tax.ohio.gov/wps/portal/gov/tax/individual/resources/residency-status
Every FYR, PYR is subject to tax, and every NR having Ohio income must file. https://tax.ohio.gov/wps/portal/gov/tax/individual/resources/who-must-file
How to stop filing a tax return or paying taxes when you move overseas?
Anyone can prove nonresidency by the “contact period test”- fewer than 213 contact period in Ohio (you have a “contact period” in Ohio if: you have a place of abode outside Ohio, away overnight from the place of abode, and while away, you spend any portion of 2 consecutive days in Ohio) during the tax year or by filing the Ohio nonresident statement form.
https://tax.ohio.gov/static/forms/ohio_individual/individual/2020/pit-it1040-booklet.pdf#page=11 (p. 10)
Oklahoma
Who must file a tax return and pay taxes?
Must file as a resident if you are domiciled in Oklahoma the entire year.
Every NR with Oklahoma source gross income of $1000+ is required to file except as otherwise provided for pass-through entity tax equity act of 2019.
PYR must file as a resident and a PYR if you have Oklahoma income of $1000+.
https://www.ok.gov/tax/documents/511NRPkt-20.pdf
How to stop filing a tax return or paying taxes when you move overseas?
Must establish a new domicile to exit.
Oregon
Who must file a tax return and pay taxes?
Must file as a resident if
- Oregon is your permanent home
- Oregon is the center of your financial/social/family life, and
- you plan on coming back when away
Oregon residents living in a foreign country may be taxed as nonresident if residency requirements for foreign earned income or housing exclusion under federal law is met.
File as PYR when you move then as NR when you meet the foreign NR requirement to report only Oregon income.
https://www.oregon.gov/dor/forms/FormsPubs/publication-or-17_101-431_2020.pdf
How to stop filing a tax return or paying taxes when you move overseas?
To change your domicile- the deciding factor is your intent to abandon your old domicile, acquire a new domicile, and be physically present in new domicile.
https://www.oregon.gov/dor/forms/FormsPubs/publication-or-17_101-431_2020.pdf (p. 13)
You are a NR if you
- are a Oregon resident but have a permanent home outside Oregon for the entire year
- did not keep an Oregon home any time of the year
- spent less than 31 days in Oregon, and
- meet the federal “physical presence” test or “bona fide residence” test for residents of the U.S. living in a foreign country.
https://www.oregon.gov/DOR/programs/individuals/Pages/what-form.aspx
Pennsylvania
Who must file a tax return and pay taxes?
Must file as a resident if you are domiciled in Pennsylvania or are a statutory resident (domiciled elsewhere but have a permanent place of abode in Pennsylvania and spend more than 183 (full) days in Pennsylvania.
How to stop filing a tax return or paying taxes when you move overseas?
To establish a new domicile, you must have
- a definite intention to exit Pennsylvania and to establish a new domicile, and
- actual physical presence in the new location
File a “Final Return” if you permanently move from Pennsylvania, unless you will receive Pennsylvania income in the succeeding years.
You establish a new domicile in a foreign country if you are living in a foreign country for other than a temporary/transitory purpose while a lawful permanent resident/citizen of the country (and not an U.S. government employee).
Rhode Island
Who must file a tax return and pay taxes?
Must file as a resident if you are domiciled in Rhode Island or maintain a permanent place of abode in Rhode Island and spend more than 183 days of the taxable year in Rhode Island.
NR are subject to tax on income from Rhode Island sources (real property, business/trade, services, gambling) but not subject to tax on interest and dividends.
http://www.tax.ri.gov/forms/2020/Income/2020%20NR%20Instructions_FINAL.pdf
How to stop filing a tax return or paying taxes when you move overseas?
To change your domicile, you must show:
- an intent to abandon your old domicile
- an intent to acquire a new domicile, and
- a physical presence in the new domicile
http://www.tax.ri.gov/forms/2020/Income/2020%20NR%20Instructions_FINAL.pdf
South Carolina
Who must file a tax return and pay taxes?
Must file in South Carolina if
- you were required to file a federal return which included income taxable by South Carolina
- had South Carolina tax withheld from your wages
You file as a South Carolina resident even if you live outside South Carolina if
- you intend to maintain South Carolina as your permanent home
- South Carolina is the center of your financial, social, family life, and
- you intend to return to South Carolina
You are a NR if your permanent home is outside South Carolina for the entire year and none of the below applies.
https://dor.sc.gov/forms-site/Forms/IITPacket_2020.pdf
How to stop filing a tax return or paying taxes when you move overseas?
If you move out of South Carolina during the tax year, you are a PYR and may consider yourself a FYR or a NR. You can choose to file as FYR or NR, whichever is more beneficial to you.
This option is only available for the tax year that you are a PYR.
South Dakota
No income tax.
Tennessee
Who must file a tax return and pay taxes?
Only interest and dividends are taxed.
Only file if you have a legal domicile or maintained a residence in Tennessee more than 6 months in Tennessee and your taxable interest/dividend is $1250+ ($2500+ married).
https://www.tn.gov/content/dam/tn/revenue/documents/taxguides/indincguide.pdf (p. 1)
How to stop filing a tax return or paying taxes when you move overseas?
Texas
No income tax.
Utah
Who must file a tax return and pay taxes?
Must file as a resident if you are domiciled:
- you claimed a child tax credit on your federal return for a dependent enrolled in Utah K-12 school
- you attended a higher education institution as a Utah resident
- you claim a residential exemption for a primary residence
- vote in Utah
- you have a permanent home in Utah and intend to return
https://incometax.utah.gov/instructions/utah-domicile
Foreign nationals & expats are considered as Utah resident for tax if you meet Utah domicile and residency requirements. Taxed on Utah source income if included in federal AGI. https://tax.utah.gov/forms/current/tc-40inst.pdf (p.4)
How to stop filing a tax return or paying taxes when you move overseas?
To break Utah domicile, you must
- be absent from Utah at least 761 consecutive days and do not return to Utah for more than 30 days
- do not claim a child credit
- do not enroll in a Utah state institution as a resident
- do not claim a residential exemption for property tax for Utah residence or do not claim Utah as your tax home for federal tax
Vermont
Who must file a tax return and pay taxes?
Must file as a resident if you are domiciled or maintained a permanent home in Vermont and are present in Vermont for more than 183 days of the taxable year.
File if you are a FYR, PYR or NR and had to file a federal return, and your Vermont net income was $100+ or your Vermont gross income was $1000+ as a NR.
You are considered a NR if you are not a resident.
https://tax.vermont.gov/individuals/income-tax-returns/who-needs-to-file/resident
How to stop filing a tax return or paying taxes when you move overseas?
A declaration of intent to abandon domicile or physical presence elsewhere is insufficient to abandon domicile. Important factors for determination include:
- voter registration
- car registration and license
- filing of other state taxes and homestead exemptions
- schools attended by children and more.
Virginia
Who must file a tax return and pay taxes?
Must file as a resident if you are living in Virginia or maintains a place of abode in Virginia for more than 183 days during the year (actual resident), or you are domiciled in Virginia (domiciliary resident).
Resident or NR alien is subject to same Virginia residency provisions.
Must file as FYR, PYR or NR. Unless exempted by federal treaty.
https://www.tax.virginia.gov/residency-status
How to stop filing a tax return or paying taxes when you move overseas?
Living Abroad- unless you establish your residency in another state, you maintain your Virginia residency. You must acquire a new domicile. You will receive the same IRC section 911 exclusion on your Virginia return.
Washington
No income tax.
Wisconsin
Who must file a tax return and pay taxes?
Must file as a resident if you are domiciled (don not have to be physically present in Wisconsin).
Aliens- if you are considered a NR alien for federal tax purposes, you are a NR for Wisconsin. If considered a resident alien federally, you are a FYR, PYR or NR of Wisconsin. https://www.revenue.wi.gov/TaxForms2020/2020-Form1NPR-inst.pdf
Must file as a NR or PYR if your gross income exceeds a limit. NR are only taxed on Wisconsin source income, and PYR are taxed on all income while a resident and only Wisconsin sources when NR. https://www.revenue.wi.gov/TaxForms2020/2020-Form1NPR-inst.pdf
How to stop filing a tax return or paying taxes when you move overseas?
To exit, you must intend to and take actions to abandon your old domicile, acquire new domicile and be physically present in the new domicile.
Wyoming
No income tax.
I'm Hui-chin Chen, a globetrotter & certified financial planner helping you manage your finances from afar and on the go.
I am US citizen and have vested company ISO while I worked and lived in CA. I relocated to oversea last Dec after left the company. I then exercised these ISO this year. I plan to permanently live in overseas. My question is : do I own CA state tax? Thanks!
So happy to have found your blog and that you’re also from Taiwan! I live in Puli 埔里. Now visiting my parents in the States this summer vacation. This information is incredibly useful. Subscribed!
Hi Rachel, if the ISOs vested while you were CA resident, the spread may be reportable AMT adjustment on CA tax return. Also you would want to make sure where you live now doesn’t tax ISO income at exercise.