Re:Americans are on the move, but their stuff doesn’t always...
by dragonwriter on Friday May 28, 2021 @12:40PM
(#27317557)
> you can establish a bona fide overseas residency, you get substantial federal tax discounts (like ~$100k tax-free income), and don't have to pay state tax anywhere.
That’s...not true. State income tax is usually due on dollars earned in the state — it used to be usually the union of (dollars earned by residents) and (dollars earned by work in the state) but a 2015 federal court decision required it to be one or the other, and AFAIK every state with an income tax has chosen the latter over the former because, basically, resident citizens vote in the state while citizens resident in other states, the most common nonresident citizen workers, don’t. So, a bona fide overseas residence doesn't have any effect on state income tax liability.
That’s...not true. State income tax is usually due on dollars earned in the state — it used to be usually the union of (dollars earned by residents) and (dollars earned by work in the state) but a 2015 federal court decision required it to be one or the other, and AFAIK every state with an income tax has chosen the latter over the former because, basically, resident citizens vote in the state while citizens resident in other states, the most common nonresident citizen workers, don’t. So, a bona fide overseas residence doesn't have any effect on state income tax liability.