Job Discussion Forums

[eslteacher2014]

Hi

I understand the whole thing regarding foreign income with regards to declaring to the federal government ect.

But do u.s citizens also have to file state income tax.
As for my self I don't own any property in America. all I plan on doing is staying with some family for a few weeks.

Does this mean I don't have any residency with any state?
Any thoughts?

[johnslat]

Dear eslteacher2014,

Do you have a driver's license? Are you registered to vote in any state? Then, that's your "Home of Record."

Even if you have no "paper ties" to any state, you'll have to declare a "Home of Record" in order for your employer to figure out your ticket fare.

So, if you have no "paper ties" of any sort, check out the state regulations for the state that you'll want to make your "Home of Record."

But remember, your ticket on every trip (including your initial one) will begin and end based on the location that you chose. So, for example, if you are living in, say, Virginia, but decide that you want your "Home of Record" to be, say, California, then all your flights will begin and end in that state. (Which airport will, of course, depend on where your "Home of Record" is located in the state).

Regards,
John

[veiledsentiments]

Not necessarily so Johnslat... my permanent contract address was in one state, but my driver's license and actual home was in another. That was the state than eventually came after me for taxes. Basically if you file in one state, that covers you for the others since there are reciprocity agreements.

eslteacher... this is when it is good to be from states like SD, FL, TX, or NV... since they have no state income taxes. You will need to check about the state that you are using as your US address (parents... bank accounts... driving license). As far as I know, all states generally start with taxable income from your federal return. If your 1040 ends up with -0-, you can get away with not filing anywhere. But, if you have income in the US... like investment income... that is when your state will come after you when it hits the amount that your state sets. (most are somewhere between $9-10K taxable income) Check your state's website for the rules.

VS

[johnslat]

Dear VS,

But if he picks, say, Florida, that's still going to be his home of record and where all his flights will be scheduled to go to and depart from, right?

Regards,
John

[myohmy]

Some states do allow the same foreign income exclusion as the federal government. It's really best to fork out the 200 to 400 dollars and pay an experienced expat tax preparer to do both your federal and state income tax returns as the rules and requirements can be difficult to decipher. I definitely would not follow any advice you get on this forum without first getting the facts from a reliable source. I have seen some inaccurate tax information posted here in the past. Having an air of authority doesn't mean one is speaking the truth, well-intentioned though they may be.

[veiledsentiments]

Considering that everyone here is supposedly teaching English, one should be able to just visit the state websites and read the instructions. I never found it all that difficult. Every state is different, but none of them are all that complicated in my experience. (I have done returns for 7 or 8 different states in the last few years)

[naturegirl321]

Each state has different rules. I checked mine and I do t have to file despite having some accounts and a license and a voters card (never used). That being said IF I went back there they might come after me. So I'd probably go to a different state. [/list]

[veiledsentiments]

[peripatetic_soul]

While I was teaching in the ME, I filed both federal (with Foreign Income Exclusion) but also state just to be safe. I never owed anything, but at least I complied with deadlines to avoid any complications down the road. A former colleague told me she was audited b/c she had not filed state taxes during her 5-year stint overseas (although she owed nothing). Whether you are under the max income or not, best to do this to avoid future hassles. Of course, each state's regs differ but this reply is based on your info of no real property, etc.

[naturegirl321]

[myohmy]

MOD edit

[veiledsentiments]

[myohmy]

MOD edit