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phiota
Raver
Joined: Nov 01, 2005
Posts: 481
Status: Offline
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 Posted:
Aug 28, 2007 - 11:49 AM |
 
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| Post subject: US State Income Taxes for Expats? |
Paid a couple thousand dollars last year for my California state income tax. Just wondering if any expats have found a way not to pay the state income tax of where they used to live if they moved abroad?
thanks,
John |
Last edited by phiota on Aug 28, 2007 - 12:49 PM; edited 1 time in total |
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CoffeeHawk_0
Board Buddha
Joined: July 14, 2005
Posts: 14444
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Aug 28, 2007 - 12:20 PM |
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Depending on what you do, you may lose state residency. this will mean you can't renew your driver's license and probably a lot of other things that are not at the forefront of your mind. |
Last edited by CoffeeHawk_0 on Aug 29, 2007 - 12:03 AM; edited 1 time in total |
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p1atl10
Board Royalty
Joined: Mar 18, 2005
Posts: 6293
Location: Shanghai
Status: Offline
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Aug 28, 2007 - 02:23 PM |
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Golden Rule of ex-pat life as a US Citizen....
NEVER lose your drivers license.
There is no way to get it back without establishing residency.
Not a whole lot of chuckles to show up on Home Leave, or travel to Europe for business and not have a valid Drivers License.
Sort of limits your transporation options to buses, taxi's, hitchhiking, and begging
The unfortunate consequence of this is the maintenance of state residency.
And taxes. |
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tlm66
Talker
Joined: Oct 07, 2005
Posts: 117
Status: Offline
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Aug 28, 2007 - 02:36 PM |
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If all of your money is earned overseas, you do not have to pay state taxes, no matter what your residency status is. |
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p1atl10
Board Royalty
Joined: Mar 18, 2005
Posts: 6293
Location: Shanghai
Status: Offline
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Aug 28, 2007 - 04:02 PM |
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Hmmm....Let me check.
I moved here from MA.
Beleive they have some sort of hokey "Residency Status" for ex-pats.
Know I got whacked for something last year by them
Later! |
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Not all chemicals are bad. Without chemicals such as hydrogen and oxygen, for example, there would be no way to make water, a vital ingredient in beer.....Dave Barry |
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p1atl10
Board Royalty
Joined: Mar 18, 2005
Posts: 6293
Location: Shanghai
Status: Offline
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Aug 28, 2007 - 04:18 PM |
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Back with the answer...
Got nailed as a partial
Massachusetts Taxes and Resident Status
If, during the tax year, you were a legal resident of Massachusetts and your gross income tax was more than $8,000 -- whether it was received from sources inside or outside of Massachusetts -- you are required to file a Massachusetts State income tax return. If your gross income was $8,000 or less, you may not have to file a return.
If you did not live in Massachusetts but you received Massachusetts Source Income in excess of your personal exemption amount multiplied by the ratio of your Massachusetts Income to your total income, you must file as a non-resident on the Nonresident/Part-Year Resident Income Tax Return, Form 1 NR/PY.
If, during the tax year: 1. You moved to Massachusetts, OR you terminated your status as a Massachusetts Resident to establish residency outside the state, AND; 2. Your taxable income was more than $8,000, then you must file as a part-year resident on the Non-resident/Part year Resident Income Tax Return, Form NR/PY. |
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Not all chemicals are bad. Without chemicals such as hydrogen and oxygen, for example, there would be no way to make water, a vital ingredient in beer.....Dave Barry |
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yu888
Board Deity
Joined: Jan 25, 2003
Posts: 18042
Location: ZhongShanParkArea SH
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Aug 28, 2007 - 04:26 PM |
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yu888
Board Deity
Joined: Jan 25, 2003
Posts: 18042
Location: ZhongShanParkArea SH
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Aug 28, 2007 - 04:27 PM |
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p1atl10
Board Royalty
Joined: Mar 18, 2005
Posts: 6293
Location: Shanghai
Status: Offline
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Aug 28, 2007 - 04:56 PM |
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And the $50,000 question.
How do the ex-pats keep their US Drivers Licences updated and current if overseas during the expiration?
Mine's good for another 4 years.
But curious... |
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Not all chemicals are bad. Without chemicals such as hydrogen and oxygen, for example, there would be no way to make water, a vital ingredient in beer.....Dave Barry |
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tlm66
Talker
Joined: Oct 07, 2005
Posts: 117
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Aug 28, 2007 - 05:10 PM |
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I am having that sort of a problem now....My license expired end of July.
However, I have bought a house in another state and in some states, you can get a driver's license even if your out of state license has expired, as long as you do it within a certain time |
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8lrr8
StreetBeater
Joined: Oct 14, 2004
Posts: 2344
Location: here!
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Aug 28, 2007 - 05:10 PM |
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| p1atl10 wrote: |
| How do the ex-pats keep their US Drivers Licences updated and current if overseas during the expiration? |
since the consulate cant do it for u (it's even mentioned in their automated telephone recording), i think u may be forced to go back and get it renewed in person. |
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8lrr8
StreetBeater
Joined: Oct 14, 2004
Posts: 2344
Location: here!
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Aug 28, 2007 - 06:26 PM |
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i looked into it for my home state. they allow renew by mail, every other time. check your state's regulations on this. |
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mswp
Rocker
Joined: Mar 06, 2005
Posts: 725
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Aug 28, 2007 - 09:08 PM |
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If, according to the IRS, your bona fide residence is Shanghai, and you earned all your income here, can you be a resident in two places simultaneously? I can understand years where you lived part of the year in the US and part in Shanghai, but once you're here for the full calendar year, don't you cease to be a state resident?
I get tax documents related to some investment income, and the firm always sent me federal and state forms, then when I said I'd be filing as an expat, they dropped the state filing. |
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ShanghaiHokie
Lurker
Joined: Aug 19, 2007
Posts: 34
Status: Offline
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Aug 28, 2007 - 09:14 PM |
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Some states have no income tax.  |
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underh20
Shanghai Royalty
Joined: Sep 27, 2006
Posts: 9900
Location: EOA Seminar
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Aug 28, 2007 - 09:23 PM |
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| tlm66 wrote: |
| If all of your money is earned overseas, you do not have to pay state taxes, no matter what your residency status is. |
Not at all true. |
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underh20
Shanghai Royalty
Joined: Sep 27, 2006
Posts: 9900
Location: EOA Seminar
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Aug 28, 2007 - 09:24 PM |
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| p1atl10 wrote: |
And the $50,000 question.
How do the ex-pats keep their US Drivers Licences updated and current if overseas during the expiration?
Mine's good for another 4 years.
But curious... |
Renewal by mail works fine. |
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underh20
Shanghai Royalty
Joined: Sep 27, 2006
Posts: 9900
Location: EOA Seminar
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Aug 28, 2007 - 09:26 PM |
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| yu888 wrote: |
California also.
which means best bet is to maintain residency in a state with no Income tax. |
Easier said than done. Much easier. |
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Missin
Reacher
Joined: June 22, 2007
Posts: 245
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Aug 28, 2007 - 09:31 PM |
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This is why I chose FL as my legal residency in the US...no state income tax! 
As for the license, I think I can renew my FL license online...except the license would be sent to my residency there and I won't be able to pick it up until the next time I go back. |
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mmd1227
Ranter
Joined: Nov 14, 2004
Posts: 558
Status: Offline
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Aug 28, 2007 - 09:55 PM |
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Drivers license renewal laws are different in every state. MY US residencey is Missouri, and they changed their rules last year. No online or mail renewals for anyone except military. this pesented a huge problem for my husband, whose license was just expiring(we assumed it could be done online) and had to make a trip to Boston before going to Missouri. He needed to rent a car, and would not be able to do so without a license. They did a one-time temporary license extension and sent to us by fax...so, check the rules in your state!!! |
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twinpointe
Barker
Joined: Mar 16, 2006
Posts: 175
Location: right here right now
Status: Offline
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Aug 28, 2007 - 10:25 PM |
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Absolutely is different by state. We got burned when moving overseas early on, got rid of our state residency (Indiana) new driver's license in Austrialia BUT we owned Indiana municipal bonds (read: tax free) and we had to either sell them or pay Indiana state income tax. Was very ugly to deal with for about 6 months. States like Michigan don't care if you live overseas. |
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dr3x320
Rocker
Joined: Nov 21, 2006
Posts: 638
Location: Boston + Pudong
Status: Offline
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Aug 28, 2007 - 11:11 PM |
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In MA, you can do the first renewal online, but the next renewal has to be in person, then next online, and vice versa. Makes it a few years each trip to do this, not bad, but check with your residency state for details on renewal, ask if they can do this procedure also, or with mail. Online is quick, fill out a form, pay online, done. |
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leidelaohu
Wonder Wit
Joined: June 11, 2007
Posts: 3778
Status: Offline
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Aug 28, 2007 - 11:22 PM |
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| Missin'_Miami wrote: |
| This is why I chose FL as my legal residency in the US...no state income tax! |
Should have chosen Alaska then - residents get a payment each year instead of paying income tax  |
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Missin
Reacher
Joined: June 22, 2007
Posts: 245
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Aug 28, 2007 - 11:51 PM |
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| leidelaohu wrote: |
| Missin'_Miami wrote: |
| This is why I chose FL as my legal residency in the US...no state income tax! |
Should have chosen Alaska then - residents get a payment each year instead of paying income tax |
Yeah, I read about this tax benefit for Alaskan residents....after I arrived in Shanghai.   |
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I am back! (sounds of crickets cricketing...) |
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phiota
Raver
Joined: Nov 01, 2005
Posts: 481
Status: Offline
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| Posted:
Aug 29, 2007 - 01:39 AM |
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| mswp wrote: |
If, according to the IRS, your bona fide residence is Shanghai, and you earned all your income here, can you be a resident in two places simultaneously? I can understand years where you lived part of the year in the US and part in Shanghai, but once you're here for the full calendar year, don't you cease to be a state resident?
I get tax documents related to some investment income, and the firm always sent me federal and state forms, then when I said I'd be filing as an expat, they dropped the state filing. |
What if I am here on F visa (marriage tourist visa) and all income from within USA (interest income)? California I heard is rather strict on trying to get away from state taxes even when moving to another state.
John |
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underh20
Shanghai Royalty
Joined: Sep 27, 2006
Posts: 9900
Location: EOA Seminar
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Aug 29, 2007 - 07:21 AM |
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| phiota wrote: |
| What if I am here on F visa (marriage tourist visa) and all income from within USA (interest income)? California I heard is rather strict on trying to get away from state taxes even when moving to another state. |
There is no such thing as an "F" marriage tourist visa. |
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