Still need file state taxes?

Does one still need to file at the state level (in the last state of US residency) if one doesn't have any income from the previous state of residence during the 2007 tax year? (no passive income or active income)

If foreign income is excluded in this particular case - Federal income is considered $0

Anyone know?

Depends on the state and your circumstances.  I would recommend e-mailing your state to find out for certain.  Here's the e-mail reply I got when I asked the same question...

You are still considered a resident of Wisconsin for the following reasons:
 
- Your assignment is temporary
- You didn't establish a permanent residence in another state before departing to England
- You intend on returning to the states
- You are claiming the foreign earned income exclusion
 
You will file a 2007 Wisconsin Form 1 as full year residents of Wisconsin.  Wisconsin follows the federal guidelines on the foreign earned income exclusion with a few exceptions.  Since the exclusion is an election you are required to file a Wisconsin return even if you have no income to report.  Line 1 of the Form 1 starts with federal adjusted gross income which takes into consideration the exclusion.

Just saw this thread. I just posted a similar question regarding having to file in New Jersey (moved over in to the UK in late 2006, and have no US income for 2007) over on the stickied thread at the top.

I'd be interested to hear if anyone has any particular knowledge of NJ.

I just called the NJ state gov to ask this very question and if your domicile is in the UK and has been for all of 2007, then you don't need to file NJ taxes for 2007.

However 99% of the users of this Forum are NOT domiciled within the UK.

New Jersey states the following:

You file as a non-resident if:

1. New Jersey was not your domicile, and you spent 183 days or less here;
or
2. New Jersey was not your domicile, you spent more than 183 days here,
but you did not maintain a permanent* home here.
or
3. You may also be considered a nonresident for New Jersey income tax
purposes if you were domiciled in New Jersey and you met all three of
the following conditions for the entire year:
♦ You did not maintain a permanent home in New Jersey; and
♦ You did maintain a permanent home outside of New Jersey; and
♦ You did not spend more than 30 days in New Jersey.

It is the same thing with PA, but you don't need to file in PA as a nonresident if you made less than a certain amount in the state each year.  So perhaps NJ has a monetary amount as well.

Really?  99% of this forum's users are not domiciled here?! I got the impression there were a large amount of people here who are settled and living in the UK permanently??

Really?  99% of this forum's users are not domiciled here?! I got the impression there were a large amount of people here who are settled and living in the UK permanently??

Correct - but being "settled & living" is not at the same as being domiciled here.

Domicile in English law is based on the concept that to acquire a domicile within one of the nations of the UK one has both to decide to stay here for ever (eg throughout retirement until death) and abandon ones previous domicile.  This makes the domicile of origin extremely tenacious & difficult to change.

The Courts in New Jersey tend to take a more facts & circumstances test than within the UK; but the various State laws on domicile mainly (but not entirely) share an English common law history so have similar concepts in origin.

Correct - but being "settled & living" is not at the same as being domiciled here.

Domicile in English law is based on the concept that to acquire a domicile within one of the nations of the UK one has both to decide to stay here for ever (eg throughout retirement until death) and abandon ones previous domicile.  This makes the domicile of origin extremely tenacious & difficult to change.

The Courts in New Jersey tend to take a more facts & circumstances test than within the UK; but the various State laws on domicile mainly (but not entirely) share an English common law history so have similar concepts in origin.

Not sure I understand.  So if someone was living here on a fiance visa with the intent of receiving FLR and then ILR (or already have FLR or ILR) and they neither own or rent a home in the US are they domiciled here in the UK or not?

I know the concept is tricky!

The UK has residence for immigration purposes - but this is nothing whatsoever to do with tax.

From a UK tax perspective the UK has 3 concepts; residence, ordinary residence plus thirdly domicile.

Most folks who read this forum are probably already resident here (for tax purposes) some (but not all) are ordinarily resident (because they expect to be for more than 3 years or have already been here tha long) but almost no-one has become domiciled here because that means deciding to stay here for ever and being certain of not returning to the States.

The non-dom rules announced today mean that most users of this site will or could pay more UK tax from 6 April 2008 if they have £2,000 or more of US income each year (interest, dividends, capital gains etc). It is really really important therefore that you learn about the domicile rules so you get your UK tax right.

I know the concept is tricky!
almost no-one has become domiciled here because that means deciding to stay here for ever and being certain of not returning to the States.

That seems a bit tenuous (if I'm using the word correctly).  I mean anyone can *say* they've decided to stay here forever (either they really beleive that or they could just be lying)--even a U.K. born and bred citizen could say that and beleive that, but end up moving somewhere else, back to the U.S., etc. in say...10 years.