Go Curry Cracker Forum
Go Curry Cracker => Taxes => Topic started by: Lamha on December 30, 2020, 06:59:18 AM
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We are inspired by you and are planning on retiring in SE Asia. Just wondering it we have to file state tax return while living abroad? Should I move to a state with no income tax for a year or so before leaving US?
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It depends on which state...
If you live in California or NY (and maybe other aggressive taxing states) then moving to another state first is a good idea. They will chase you for years, I hear.
We were in Washington, which has no state income tax.
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Thanks for your response. We happen to live in New York. Unfortunately, my family members live in NY and my in-laws live in California. Not sure how to "borrow" an address in a no or low income tax state. Will a PO box be acceptable?
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Alas, establishing residency is a bit more involved... you gotta actually go there, get a driver's license, register to vote, close bank accounts in NY and open them in X, etc...
If you are establishing permanent residency in a foreign country and can show you have clearly severed ties with NY, you may be able to skip the intermediate state option if you can meet Group A or Group B exceptions in full (need to meet all 3.)
Note NY's nuance to whether you are a resident is based on your domicile: "Your New York domicile does not change until you can demonstrate that you have abandoned your New York domicile and established a new domicile outside New York State"
Check out this page and the items they link to:
https://www.tax.ny.gov/pit/file/pit_definitions.htm
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Really appreciate your explanation. I think I know what to do next.