Vanessa_GA

I understand US citizens have to file tax returns with the IRS wherever they live, but I'm wondering what happens with state taxes. If the last state you lived in taxes income, would you still have to file/pay them if you moved to the UK?

Beraider

Depends on the State.

Vanessa_GA

Good answer! Of course you're right. It just seems odd to me that there's a lot of discussion on here regarding federal tax filing, but next to nothing about state taxes.

penguinsix

State taxes are a F@#$%@#$%@#$% pain for US expats. I mean, I really really hate this part of working overseas.

As noted, 'it depends' is the correct answer, but in many cases, you'd probably be surprised how many states require you to continue filing state income tax returns every year.

In some states it boils down to "domicile" (not "residency"), property, and visa status overseas. If you say keep bank accounts at a US state address, a US drivers license, voting in a certain state, etc, and then return back to that address in a few years, these can be used to show your "domicile" did not change even though you were not resident and you are still liable for taxes. If you own property in a state, the state may take that attitude you will one day return and need to pay for the upkeep of the community which surrounds your property. Some states say if you are overseas only temporarily (i.e. a work visa) you don't have the right to live there permanently such that your permanent home remains in the US state.

But it really depends.

https://www.greenbacktaxservices.com...tate-taxation/
https://www.usexpattaxhelp.com/Expat...Tax-Return.php

Vanessa_GA

Thanks for taking the time to reply and for the helpful links. The work visa scenario you described applies to my US citizen husband at the moment, working in the UK and still paying taxes to Georgia. We're trying to plan out his retirement and subsequent permanent move to the UK. I think it's going to involve establishing residency in Florida or Texas prior to applying for the spouse visa because we don't want to pay Georgia money for nothing, or even just the hassle of filing.

durham_lad

We were working in Louisiana when we retired. We immediately moved "next door" to Texas, spent 5 years doing lots of travel then moved back to the UK in 2016. Nice to not have to worry about State taxes.

durham_lad

Like yourself I really struggled with this when I returned in 2016 and finally found one who has been doing my returns. She is fully booked and each year I wonder if this is the year I won't get a reply to my emails.

Searching google for US tax advisors in England comes up with many choices, but no recommendations. I have registered with Greenback Expat Services and am on their newsletter and have attended a couple of their web seminars but have not used them. They are my standby for when my current advisor retires, moves on or whatever.

Some of the below have been recommended by posters on this site. Some are inexpensive (less than $400), some are expensive ($1,000+).

Golden Rules for choosing a great tax professional when in the UK:
1. QUALIFICATIONS
Do not be shy! Ask if they are members of professional bodies in both the US and UK and if so, which ones and for how long.
2. COST
Ask what they charge!
3. COMFORT
Pick one who is dually US/UK qualified (so you know that the tax preparer is regulated in both the US and the UK) and who you feel you can get on with. This is a personal choice so call a few firms before deciding...


https://www.greenbacktaxservices.com/

https://britishamericantax.com/

Expatriate Tax Services | US & US Expat Tax Returns | Ingelton Partners

https://www.hrblock.com/expat-tax-pr...caAtw7EALw_wcB

https://www.taxesforexpats.com/

https://www.usglobaltax.co.uk/

https://www.americanuktaxsolutions.com/about-us.html

American Tax Returns - US and UK Tax Experts Tel: 020 8946 0523

https://www.frankhirth.com/

Streetlegal

This is so annoying! I had assumed I no longer paid bloody state tax when retiring back in the UK, but California it seems is a "sticky" state and I will have to continue to pay taxes here.
Does anyone know what parts of my income the state tax will cover?
Ed

Streetlegal

Just looked this up. Apparently pensions are excluded from California state tax, so I should be okay as long as I am non-resident. Phew.

kateg60

Did you actually rent/buy property in Texas during the 5 years?

durham_lad

We rented an apartment in a complex so that it was easy to “lock and leave”. I’d moved all our bill paying to online, when we’d go I would let the front desk know and they would look after the place while we were gone. Our son would drop by the mail box every week or so to see if anything important had arrived.