Do I have to file a state income tax return if I am living overseas?

If you are a US Citizen or resident alien living abroad, it depends on which state you most recently lived in before your move, you may need to file a non-resident state income tax return even if you are living abroad. Please do not assume that as you have left the US you are not obligated to file a state tax return.

Every state has its own set of rules about defining a “resident” and their own minimum filing requirements. Most states, but not all, also allow the foreign earned income exclusion in determining taxable income.

If you prove your residency somewhere else for more that 6 month of the year, most of the state will allow you to be release you residency status .

California, New Mexico, South Carolina, and Virginia are the most difficult states in terms of ending your residency. If you moved from one of these states, then definitely you have not been released from filing obligation. If your were resident of these states then you must prove that you will not return to the state. If you are unable to prove, then you must file a state income tax return.

If you were in Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming then consider yourself lucky as these states does not collect an individual state income tax.

Tennessee and New Hampshire have a limited income tax on individuals. They collect tax only on the income received in the form of dividends and interest.

If you are filling your Expatriates Income tax return with us we will research on your state filling requirement.