Filing tax return while living abroad

[Lamha]

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?

[gocurrycracker]

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.

[Lamha]

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?

[gocurrycracker]

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

[Lamha]

Really appreciate your explanation.  I think I know what to do next.