In this brief video, Greenback Expat Tax Services President and CEO David McKeegan addresses a question that many American expats ask: “Do I need to file a state tax return?” This video explains what you need to know to ensure that are aware of the criteria for filing state tax returns if you’re an American expat.
Hi everybody. I’m David McKeegan from Greenback Expat Tax Services. Today, I wanted to answer a question that we get all the time, which is, “I’m an American living overseas, do I need to file a state tax return?”
As you probably guessed, the answer to this question is it depends on which state you were last a resident in, or which state you are considered to be domiciled in. If you’re a resident, or if you are living in Alaska, Florida, Nevada, South Dakota, Texas, Wyoming, or Washington, then you don’t have to worry about filing a state tax return. If you’re in New Hampshire, or Tennessee, they only collect taxes on dividend and interest Income, so that will depend on whether you have dividend or interest income. If you’re from California, New Mexico, South Carolina, or Virginia, then the answer is most likely going to be yes. Those states are pretty keen on keeping taxpayers, having them to continue to file state tax returns. The answer is probably going to be yes if you’re from one of those states.
If you’re from one of the other 37 states, it’s going to depend on when you moved abroad, and what ties you have back to that state. Things like library cards, or rental properties, if you still have family living there, if you still own a property, have bank accounts, have a driver’s license. These are things that the state can use to say, “Yes, you’re still domiciled here, so you do need to continue to file a Tax Return here.” It’s going to depend from state to state after that. What I really recommend is that you speak to an expert about whether or not you have to file for that individual state.
If you have any other questions, please feel free to get in touch with the expat accountants at Greenback Tax Services. We will be more than happy to answer any questions you have. Thanks for listening.
Need Help with Your American Expat Taxes?
For more in depth information, you can refer to our blog post on this topic, too. If you have questions about whether you need to file taxes or if you would like help completing your American expat tax return, please contact our expat accountants.