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Topic: Do I need to pay US state taxes as a UK resident?  (Read 2679 times)

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Do I need to pay US state taxes as a UK resident?
« on: April 27, 2006, 10:53:48 AM »
I'm afraid to ask this question!

I've been a resident of the UK for six years now. I pay my US Federal taxes but haven't paid any State taxes since the second year of living here. My question is - am I doing something wrong? Do I need to be paying US state taxes?

Thanks!
Mimsy


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Re: Do I need to pay US state taxes as a UK resident?
« Reply #1 on: April 27, 2006, 11:12:08 AM »
i can tell you if you have work days in a state that you have to.   >:(

i owed california this year!


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Re: Do I need to pay US state taxes as a UK resident?
« Reply #2 on: April 27, 2006, 11:37:51 AM »
Amiloo - What constitutes a "Work Day"?  For instance, I go home to Mass for holidays, my company's headquarters are located there, but I don't do any work.  Does that count?  Is it weekdays?


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Re: Do I need to pay US state taxes as a UK resident?
« Reply #3 on: April 27, 2006, 11:52:12 AM »
Amiloo - What constitutes a "Work Day"?  For instance, I go home to Mass for holidays, my company's headquarters are located there, but I don't do any work.  Does that count?  Is it weekdays?


"work day" is actually going into the office and working.


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Re: Do I need to pay US state taxes as a UK resident?
« Reply #4 on: April 27, 2006, 11:55:29 AM »
I'm afraid to ask this question!

I've been a resident of the UK for six years now. I pay my US Federal taxes but haven't paid any State taxes since the second year of living here. My question is - am I doing something wrong? Do I need to be paying US state taxes?

Thanks!
Mimsy

 I guess it depends on the state, but i know for NJ, if one has been there less than 30 days in a tax year, one does not have to file.  I didn't file any NJ returns for 2005 as I was in NJ for less than 30 days.


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Re: Do I need to pay US state taxes as a UK resident?
« Reply #5 on: April 27, 2006, 12:03:10 PM »
this is a really confusing issue.

i moved over to uk from new york [where i'd only lived for 2.5 years]. i have nothing to do with the states anymore other than coming over to visit my parents in california for a few weeks a year. although saying that, i registered for a driver's license and to vote in california so would that alone make me liable for paying taxes in california?

[me thinks i need an accountant. sigh....]


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Re: Do I need to pay US state taxes as a UK resident?
« Reply #6 on: April 27, 2006, 12:08:01 PM »
Driver's license thing is a good point.  Renewed my license this past summer while I was here....Oops!


Re: Do I need to pay US state taxes as a UK resident?
« Reply #7 on: April 27, 2006, 04:07:07 PM »
California doesn't tax residents living abroad. There's a thread on here somewhere with a link to the list of states and their separate rules. My US address (only used for drivers licence and tax crap - oh and having Victorias Secret purchases sent to  ;) ) is in California and I don't file state taxes - just fed. I don't really get why Amiloo had to pay California - is it just to do with working there?


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Re: Do I need to pay US state taxes as a UK resident?
« Reply #8 on: April 27, 2006, 04:49:43 PM »
California doesn't tax residents living abroad. There's a thread on here somewhere with a link to the list of states and their separate rules. My US address (only used for drivers licence and tax crap - oh and having Victorias Secret purchases sent to  ;) ) is in California and I don't file state taxes - just fed. I don't really get why Amiloo had to pay California - is it just to do with working there?
that's the best news evah. thanks! [i'll still check with my accountant and send word if she says different, but fingers crossed she won't!]


Re: Do I need to pay US state taxes as a UK resident?
« Reply #9 on: April 27, 2006, 04:57:54 PM »
California doesn't tax residents living abroad. There's a thread on here somewhere with a link to the list of states and their separate rules. My US address (only used for drivers licence and tax crap - oh and having Victorias Secret purchases sent to  ;) ) is in California and I don't file state taxes - just fed. I don't really get why Amiloo had to pay California - is it just to do with working there?

Oh me soooo happy.  I didnt really start looking into any of this yet!  Thanks Anne!!!


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Re: Do I need to pay US state taxes as a UK resident?
« Reply #10 on: April 27, 2006, 05:19:34 PM »
Not sure about NY, but I've had to file VA taxes since I've been the past 4 years.  I'd love to be able to stop filing!  Maybe I don't have to anymore?
And the world first spoke to me in Sensurround


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Re: Do I need to pay US state taxes as a UK resident?
« Reply #11 on: April 27, 2006, 05:29:16 PM »
OK - it depends:  You can, broadly, divide states into 3 groups. The first is easy - no income tax (e.g. Washington, Texas and Florida).  Secondly,  the States that define a resident as someone who is domiciled there but have a SPECIAL rule for those who live overseas.  The States which fall into this category include New York and California, both of which say that you become non-resident from the day you left, providing you stay away for about a year and a half (in these cases if the assignment does not work out so you end up back home sooner than planned, then hard luck).

The third kind are those States that tax folks as residents based on domicile.  These include Massachusetts, Georgia and Virginia.  In these States it is often almost impossible to break residence just by working overseas.

Finally, even if non-resident but you perform duties in a State (e.g. have a few workdays there) you may find you owe that State some tax.  This typically hurts most in California and New York. Failing to pay if you owe a few dollars in State taxes technically counts as tax evasion, so it needs thinking about; but in some circumstances the State tax may be claimed as a credit in the UK so may not actually cost anything apart from some paperwork.


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Re: Do I need to pay US state taxes as a UK resident?
« Reply #12 on: April 27, 2006, 07:10:02 PM »
So of those states you don't mention, Guya, do I assume that once you've left you're no longer liable for State taxes (assuming you don't do State work).  It's very annoying about VA, GA and MA, especially when you don't owe any tax!!
And the world first spoke to me in Sensurround


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Re: Do I need to pay US state taxes as a UK resident?
« Reply #13 on: April 27, 2006, 10:12:25 PM »
No Matt; that would a very dangerous assumption.  I was giving examples (only).  All States that have an income tax change laws every year, so you'd need to revisit the State law where relevant.  A tax specialist will spend her or his time reading updates daily and attending continuing education.  At least that way such a person can have an idea of several state rules.  More specific details may require specific research. ;)


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Re: Do I need to pay US state taxes as a UK resident?
« Reply #14 on: May 26, 2006, 05:23:08 PM »
Does anyone know about Illinois?

I'm moving in June to work in the UK for 12-18 months. Any advice is appreciated!


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