Ivonne

Hi,

me and my husband, we've lived in Illinois for more than 5 years until 2007.
After that, we returned to our homecountry Germany where we still live.

During our time in the USA, we contributed to a 401K Plan and now we decided to withdraw that money.

We know, that 20% Fed. taxes will be withheld as well as 10% penalty.

Now our questions:

1. We will have to file a US-income tax return. I already know, that we have to file as non-residents. But what about state income taxes? We no longer live in the US, so do state tax returns apply to us at all? If yes, which state? The one, we last lived in (illinois)?

2. As non-residents, we will only have to pay fed. income on US source income. But will our german income be applied towards us tax progression?

3. I know, this is a british expats forum, but maybe someone knows: can we file federal (and, if this applies to us, state tax) return here in Germany?

thanks in advance!
Ivonne

ian-mstm

No.


Sorry, no idea.


Probably not - unless, like Britain, the US Embassy/Consulate in Germany has a tax division. My guess... you'll likely need to send them to the IRS in the US.

Ian

md95065

I wouldn't be so sure about state taxes - some of the states (California being one) are notorious for trying to go after people who are no longer resident in the state but who benefited by making contributions to 401K plans while they were earning in California - their argument is that contributions to these plans are "tax-deferred" not "tax-free" and that, at the end of the day, they want their cut ...

dunroving

Surely you can file US tax returns from anywhere in the world (electronically)? I used to file electronically using TurboTax online when I lived in the US, and have filed from here (UK) using the same method.

Bob

That does depend on the state, no idea about Illinois, but some do, some don't.