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Calling all foreign ERs
Old 08-12-2006, 03:09 PM   #1
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Calling all foreign ERs

I know there are a couple of you out there so I just wanted to ask what you do about your state taxes. You always have to file a 1040, but do you do a non-resident form for the state where you last lived too?
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Re: Calling all foreign ERs
Old 08-12-2006, 03:20 PM   #2
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Re: Calling all foreign ERs

I live in TX, but still have income from NY state derived sources, so I file a non-resident NY state tax return each year. TX has no state income tax.

Years ago, NY tried to collect taxes on IRA withdrawals of NY source income even though the recipient had since moved out of state. It didn't succeed.
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Re: Calling all foreign ERs
Old 08-12-2006, 04:47 PM   #3
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Re: Calling all foreign ERs

Quote:
Originally Posted by LOL!
I live in TX, but still have income from NY state derived sources, so I file a non-resident NY state tax return each year. TX has no state income tax.

Years ago, NY tried to collect taxes on IRA withdrawals of NY source income even though the recipient had since moved out of state. It didn't succeed.
Thanks LOL, I figured that once you permanently move out of state and become domiciled somewhere else any dividend, capital gains etc will be taxed where you
currently live. So I'm thinking that unless I have a business or rental property in my previos state I won't have to file a tax form with them
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Re: Calling all foreign ERs
Old 08-12-2006, 04:56 PM   #4
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Re: Calling all foreign ERs

nun, did you see this thread on "US Expats and state taxes"?

http://early-retirement.org/forums/i...p?topic=5477.0

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Re: Calling all foreign ERs
Old 08-12-2006, 05:18 PM   #5
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Re: Calling all foreign ERs

Quote:
Originally Posted by REWahoo!
nun, did you see this thread on "US Expats and state taxes"?

http://early-retirement.org/forums/i...p?topic=5477.0

Thanks I'll read it. It's looking like I'll only have to file with the state once I start taking the IRA/401k distributions as reasonably enough they want the state tax that was deferred
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Re: Calling all foreign ERs
Old 08-12-2006, 05:50 PM   #6
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Re: Calling all foreign ERs

Quote:
Originally Posted by nun
Thanks I'll read it. It's looking like I'll only have to file with the state once I start taking the IRA/401k distributions as reasonably enough they want the state tax that was deferred
That's one reason why folks move to a no-state-income tax state when they retire.
Here's another article from today that comments on this:today.reuters.com

(I'm sure someone will make the link tiny) (Will small do?)
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Re: Calling all foreign ERs
Old 08-12-2006, 07:17 PM   #7
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Re: Calling all foreign ERs

nun,

**quote**not working**
It's looking like I'll only have to file with the state once I start taking the IRA/401k distributions as reasonably enough they want the state tax that was deferred
**

be careful here, for example PA taxes 401K's now and does not when withdrawn. KY gives an exclusion of 44,000 +/- when withdrawn and over that it would be taxed twice.
My point is investigate how the destination state handles it to avoid surprises. It may not be handled like the feds.

job
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Re: Calling all foreign ERs
Old 08-12-2006, 08:15 PM   #8
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Re: Calling all foreign ERs

I am in the process of moving out of NY to AZ. I am now wondering, outside owning NY real estate property or a NY business, neither which I own, what constitutes state derived sources?
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Re: Calling all foreign ERs
Old 08-12-2006, 08:37 PM   #9
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Re: Calling all foreign ERs

Quote:
Originally Posted by vagabond
I am in the process of moving out of NY to AZ. I am now wondering, outside owning* NY real estate property or a NY business, neither which I own, what constitutes state derived sources?
For me it is getting a 1099 for consulting work done in NY even though my tax home is TX.
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Re: Calling all foreign ERs
Old 08-12-2006, 08:40 PM   #10
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Re: Calling all foreign ERs

Quote:
Originally Posted by nun
Thanks I'll read it. It's looking like I'll only have to file with the state once I start taking the IRA/401k distributions as reasonably enough they want the state tax that was deferred
Well I was wrong, here's some words from the MA DOR tax site. Looks like I'll be taxed
by the Feds on IRA distributions, but not by MA is I'm not a resident.

27. How do I determine the amount of taxable IRA distribution in Massachusetts?



Non Roth IRA distributions received by a full year and/or part-year resident are not taxed in Massachusetts until the original contributions are fully recovered. Only those contributions that have been made by taxpayers while Massachusetts residents are considered.



Nonresidents are not subject to tax on these distributions, nor are they taxed on rollover amounts into Roth IRAs in Massachusetts. Massachusetts follows the federal rules concerning rollovers from existing IRAs to Roth IRAs. However, similar to the Massachusetts treatment of IRA distributions, the amount includible on the Massachusetts return by a Massachusetts full year and/or part-year resident will only include the amounts in excess of the original contributions.
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Re: Calling all foreign ERs
Old 08-13-2006, 07:52 PM   #11
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Re: Calling all foreign ERs

Quote:
Originally Posted by LOL!
For me it is getting a 1099 for consulting work done in NY even though my tax home is TX.
I forgot about w**king in NY. Haven't done that either.
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