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Topic: Establishing domicile outside of Maryland  (Read 1304 times)

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Establishing domicile outside of Maryland
« on: October 12, 2005, 09:24:02 PM »
Hi all, I am hoping somebody can help me out as this has been puzzling me for a while and I can't seem to find a proper answer on the state web site.

If my spouse and I move from Maryland to the UK, both as US citizens, how do we prevent being taxed for Maryland State tax? I know MD is a domicile state but do they recognize moving to another country as establishing domicile outside of MD?

Can I keep a bank account and driver's license in Maryland or would that make me domicile in MD?

Also, how do I notify the state that I'm establishing domicile in another country? Or do I simply stop sending a state tax return?

Thanks!


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Re: Establishing domicile outside of Maryland
« Reply #1 on: November 11, 2005, 07:53:11 PM »
Don't know Maryland specifically, but there are definitely traps (saw an article in Forbes on it recently).

I have been told that making sure you no longer own a residence there, and don't vote there are the key considerations.


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Re: Establishing domicile outside of Maryland
« Reply #2 on: November 12, 2005, 09:09:21 AM »
I have been there, done that for Maryland and I had KPMG advising me and here is what I was told:

Maryland is among the most restrictive jurisdictions in the US for trying to capture expat income for income tax purposes. You cannot retain

a Maryland residence (even rented)
a Maryland registered automobile
any Maryland real estate
a Maryland postal address
OR
(and this is a REALLY big deal for the state of Maryland:) a Maryland driver's licence.

There was a couple who had personal effects in storage in Maryland for ten years and, when they returned to Maryland after that period, were adjudged liable for back taxes and interest and penalties over that period, although they had no other connections with Maryland. They had been living in Dubai or somewhere like that. As I recall, it was a substantial amount of money.

You also must clearly meet the residential requirements to be an expat (your tax advisor can give you the details).


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