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Topic: When do you stop paying US state income tax?  (Read 1336 times)

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When do you stop paying US state income tax?
« on: April 08, 2020, 11:18:40 AM »
I moved from New Jersey to the UK in June 2019 on my initial spouse visa.  I still own my home in NJ.

I realize there may be differences depending on state requirements, but I'm thinking for NJ income tax purposes I can end my NJ residency as of June when I left for the UK. 

A few things, however, are giving me pause.

-  I traveled back to the US several times since arriving in the UK and stayed in my NJ home.  Once life returns nearer to normal I plan to continue to do this, perhaps for up to 2 months a year.

-  My NJ Driver's license expires in August and I would like to renew it.  If my income tax records show I left the state in 6/19 does that create an issue?  I still have a mailing address in the US.

I'm curious what others have done? 

Thanks very much.






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Re: When do you stop paying US state income tax?
« Reply #1 on: April 13, 2020, 08:28:44 AM »
There are definitely differences from state to state regarding state tax obligations, and you need to understand what NJ considers "ties". Generally, you will need to prove that you have broken ties to your former state of residence, and do not intend to return. Owning a home will likely make this a bit difficult.

With respect to your driver license, again, check the state requirements. Many require you to report a change of address, and some (VA is one) specifically state that if you move out of state or to a foreign country, you cannot legally hold a DL. If you have an accident, and your DL is considered invalid, insurance won't pay, and you could also be charged with driving without valid insurance. So yes, it's complicated.

Assuming you have income now and/or expect to have income from employment in the UK, you will likely want to avoid double taxation by opting into the tax treaty. You can exclude earned income or take a federal tax credit, but you need to meet the foreign residency requirements (either bona fide residence test or physical residence test). Accordingly, you need to consider how much time you expect to spend in the US very carefully.
Married December 1992 (my 'old flame' whom I first met in the mid-70s)
1st move to UK - 1993 (Letter of Consent granted at British Embassy in Washington DC)
ILR - 1994 (1 year later - no fee way back then!)
Back to US in 2000
Returned to UK July 2011 (Spousal Visa/KOL endorsement)
ILR - September 2011
Application for naturalization submitted July 2014
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Re: When do you stop paying US state income tax?
« Reply #2 on: April 15, 2020, 10:52:52 AM »
Thanks so much for the detailed reply.  I decided to pay NJ taxes for all of 2019 since I returned to my NJ home several times after my initial arrival in the UK.  We're going to find a tax adviser for guidance going forward.

I read your timeline - our story is similar to yours.    We met in 1990 and rekindled in 2017.  It's funny the places that life takes you...


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