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Re: U.S. expats and state taxes
Old 01-10-2006, 09:38 PM   #21
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Re: U.S. expats and state taxes

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Originally Posted by mikew
As long as they don't try to make me move back to Toledo.Mike
Could be worse Mike; Ever go to Rudy's Dog Shack (or some name like that) Great Chili dogs
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Re: U.S. expats and state taxes
Old 01-10-2006, 09:49 PM   #22
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Re: U.S. expats and state taxes

And Tony Packos*
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Re: U.S. expats and state taxes
Old 01-11-2006, 12:22 AM   #23
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Re: U.S. expats and state taxes

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Originally Posted by mikew
And Tony Packos*
Oh man, Tony Packos! I love their chili!!!
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Re: U.S. expats and state taxes
Old 01-11-2006, 02:54 AM   #24
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Re: U.S. expats and state taxes

Biggest drawback to living in Italy: no cheddar cheese.

Found a packet of chili powder in a specialty store, whipped up a batch 'o' chili and put it on a hot dog (wurstel) and was transported back "home", albeit sans cheddar.

Just for yucks, here's a popular Italian hot dog brand:



The trucks have a 30ft. long hot dog image on them.. pretty amusing.


---
To get back to the subject at hand, AFAIK the Federal tax forms do not say anything about "residency". The mailing address I put down is the RI one, my mom's. My only income is from US investments and even if it were not, residency does not change the amt. of fed. tax owed. My erstwhile accountant said he had some clients overseas who used a US address, and some who used a foreign address; said it made no difference--a matter of choice. "Residency" for federal tax purposes seems to be an issue only for non-citizens paying tax on US income, since citizens are required to pay tax on worldwide income regardless of where they live.

Voter registration is MA (last place of registration, as bpp also noted).

Haven't renewed my passport yet, tho' I need to do so within the next month or so, by mail to the US consulate in Florence. If they ask for a US address, I'll give the RI one.

What do people do who are permanently overseas and don't maintain a US address?

I can't imagine the hassle of changing every piece of paper in my life over to South Dakota, remotely no less. Wouldn't one have to at least set foot there? I also don't feel like paying a mail service; I'd do that only if I had no other choice. Right now, I get an express mail once in a while when things pile up, and my mom opens anything urgent, like a car excise bill for a car that's now in Italy, and I can start dealing with it within a matter of hours rather than waiting for the Italian mails, where the question is less 'when' it will arrive, but 'if'.

Mikew, in the case of the child 'inheriting' the parents' former state residency.. does that mean, in your view, that a US state will then start going after the child for US state taxes once that child starts working in the foreign country of his birth??!?!?* A state he never set foot in? Hmmmm.


Quote:
As long as they don't try to make me move back to Toledo.
Quote:
You could probably seek asylum in another country if they did that.
Hey, with Bush's new torture policies, the CIA would hunt you down anyway, kidnap you, and take you back to Toledo. (You did know that's one of the "black sites", didn't you?)
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Re: U.S. expats and state taxes
Old 01-11-2006, 08:03 AM   #25
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Re: U.S. expats and state taxes

Unfortunately I am stuck. We own property in GA so I think we'll have to pay income taxes for 2006. I'll ask my accountant in April about that when I go back to the US.
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Re: U.S. expats and state taxes
Old 01-11-2006, 08:26 AM   #26
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Re: U.S. expats and state taxes

If successful in having no state residency, would that mean no place to come back to for assistance from Medicaid, Unemployment Insurance, Special Education, etc., if the need arises unexpectedly and your overseas "home" country refuses to provide?
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Re: U.S. expats and state taxes
Old 01-11-2006, 09:21 AM   #27
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Re: U.S. expats and state taxes

Resident in Italy and married to an Italian so health care is free, minus some tests and some drug co-pays, optical & dental... If I weren't married but only resident, I could buy into the public system for about 400/yr.

RE and was in a partnership in the US, so unemployment insurance isn't/wasn't on the horizon.

() might think I need Special Ed.


UPDATE: Found the definition of non-resident on the in the RI tax statutes:
"A nonresident individual is an individual who is not a resident."


They do sorta define who is a resident: "a person domiciled in the State of Rhode Island or although not domiciled here does maintain a permanent home in Rhode Island and is here for a total of more than 183 days of the taxable year."

They don't define what "domiciled" means, though.
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Re: U.S. expats and state taxes
Old 01-11-2006, 04:47 PM   #28
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Re: U.S. expats and state taxes

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Originally Posted by ladelfina



UPDATE: Found the definition of non-resident on the in the RI tax statutes:
"A nonresident individual is an individual who is not a resident."


They do sorta define who is a resident: "a person domiciled in the State of Rhode Island or although not domiciled here does maintain a permanent home in Rhode Island and is here for a total of more than 183 days of the taxable year."

They don't define what "domiciled" means, though.
Ask Martha. Its a complicated legal proposition but you might want to understand it if RI will use their interpretation of it to ask you for back taxes. I wouldn't contact them with questions but get a plan on how to answer them or any other state so as not to get caught off guard and say the wrong thing. Like you might want to have the line: "I intend to return to the US and live in South Dakota someday" or something like that if RI contacts you.
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Re: U.S. expats and state taxes
Old 01-11-2006, 05:13 PM   #29
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Re: U.S. expats and state taxes

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If successful in having no state residency, would that mean no place to come back to for assistance from Medicaid, Unemployment Insurance, Special Education, etc., if the need arises unexpectedly and your overseas "home" country refuses to provide?
Why would my country of residence refuse to provide? I pay into all the equivalent social insurance programs here, have permanent residence (green card equivalent), etc. But no, I would not expect to be able to go traipsing back to the US and collect on programs into which I have not paid in many years.

Bpp
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Re: U.S. expats and state taxes
Old 01-12-2006, 04:50 AM   #30
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Re: U.S. expats and state taxes

You're right, bpp. There are two kinds of non-residents: those who are coming back, and those who aren't.

My first move abroad was only for a year and a half, and I continued paying state taxes, kept my home (rented it out), reported rental income, etc. In that case, I would expect to have all the services in place should I have needed to return.

But this time is for good, or at least for the forseeable future. I'm not asking for anything from RI except for a mailing address and driver's license.
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Re: U.S. expats and state taxes
Old 01-12-2006, 05:04 AM   #31
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Re: U.S. expats and state taxes

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Originally Posted by ladelfina
But this time is for good, or at least for the forseeable future. I'm not asking for anything from RI except for a mailing address and driver's license.

ladelfina,

Ever consider an International Driver's License? May work OK if you are not in the USA often.

Off topic, but living in Italy sounds cool. I've never been there but as a kid, there were a lot of Italians in my neighborhood; they were great people and WONDERFUL cooks.

Care to post some of your experiences?

Lance
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Re: U.S. expats and state taxes
Old 01-12-2006, 06:24 AM   #32
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Re: U.S. expats and state taxes

Lance, I had an "international driver's license" but it was through the AAA and I had to show a valid US license to get it. It's only good for a year. Now that I've been in Italy over a year, it's not valid even if I renew it in the States.* The Italians look at the start of your residency and give you one year beyond that; I have to get an Italian license anyway*

Italian version of AAA offers this:
Quote:
Si consiglia una traduzione giurata* in inglese della patente italiana ( rilasciata da un'agenzia di traduzioni) La patente internazionale accettata nel paese conforme al modello Convenzione di Ginevra 1949, ma diversa da quella rilasciata in Italia.
"We recommend that you carry a notarized English translation of your Italian license (obtained from a translation agency). The international license accepted in the country (the US) conforms to the 1949 Geneva Convention model, but is different from that issued in Italy."

Quote:
Il permesso internazionale di guida attualmente ottenibile in Italia conforme al modello "Vienna 1968"
"The international driver's license currently issued in Italy conforms to the "Vienna 1968" model."

Who knew?

I go to the States about twice a year and it's sure handy to have the RI license.


As far as experiences, I wouldn't know where to begin! You could visit the Ex-Pats in Italy web site; there's a forum there where I and many others post questions and comments on basically every aspect of living in Italy.
http://expattalk.com/eve
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Re: U.S. expats and state taxes
Old 01-13-2006, 09:49 PM   #33
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Re: U.S. expats and state taxes

State taxes for expats are a serious risk. One of the Thai expat websites had a discussion in which a guy who had left California seventeen years earlier was being hounded for taxes, interest, and penalties. The advice in that discussion was to take definite steps to establish that you are no longer a state resident such as returning your driver's license. Those folks definitely believed that an expat could avoid being taxed by a state.

I don't know that answer, but when my time comes I will get legal advice as anyone with such a risk should do.
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Re: U.S. expats and state taxes
Old 01-17-2006, 06:35 PM   #34
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Re: U.S. expats and state taxes

I did some serious research on this during the dotcom bubble when my employee stock options were very valuable. I was considering leaving California and moving to another state like Washington with no income tax within the 90 days I had to exercise them.

The theory was that by avoiding the 9.8% California income tax I would save a year's worth of salary.

The unfortunate reality though is that California would still consider that money taxable since it was earned in California. So even if I moved to Washington and exercised my options, I'd still owe tax to CA.

The more research I did into this, the more ridiculous I found state tax rules for nonresidents. Basically all states want to collect as much tax as they can, so they assert the right to tax any money that passes through the state no matter how tenuously. There seem to be some edge cases where a person who moves from one state to the other has their income taxed fully by both states.
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Re: U.S. expats and state taxes
Old 01-17-2006, 07:24 PM   #35
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Re: U.S. expats and state taxes

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Originally Posted by fireme
I did some serious research on this during the dotcom bubble when my employee stock options were very valuable.* I was considering leaving California and moving to another state like Washington with no income tax within the 90 days I had to exercise them.*

The theory was that by avoiding the 9.8% California income tax I would save a year's worth of salary.

fireme: You must have had some whopping amount of stock options, to give you a years salary on 9.8%!

In any case, I thank you, Arnold thanks you, and I'm sure that most of the households in the area of Calif. that I live in, (Average household income of $32,500) thanks you.

Stick around, Lord knows we can use the money!



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Re: U.S. expats and state taxes
Old 01-17-2006, 08:26 PM   #36
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Re: U.S. expats and state taxes

For what it's worth / out of interest, this is my experience with regard to my Government involvement in taxes etc when overseas.

I declared myself "Not Ordinarily Resident" for tax purposes by completing one form and sending it to the Tax office. This declaration meant that I intended living and working outside the country for more than 275 days in any 12 month period. At the time I gave them no overseas address (I am not required to) and I informed them that I would not be at my previous address after my advised date of departure. That was it. Never received a tax assessment, made a declration or paid any taxes to them since.

Everafter, I am not required to complete a tax return or declare my overseas income to the home country. I now voluntarily advise them of my overseas address via my local embassy or consulate for emergency contact purposes.

After nearly a decade overseas, my next step is to change my domicile such that the home Gov can't get into my dependants for inheritance taxes when I shuffle off this mortal coil.

Many friends and relatives are US citizens and have the problem of continuing to pay US domestic taxes decades after they have expatriated and as a whole are non too happy with being the only kids on the block who's Gov won't let go of them!

Cheers

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Re: U.S. expats and state taxes
Old 01-17-2006, 11:14 PM   #37
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Re: U.S. expats and state taxes

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Originally Posted by sailor
Few US expats I know use South Dakota as their US address. No state income taxes to worry about.
Bumping old thread. What about registering a car? I plan to move to Canada this summer, but I do want to keep my car with a U.S. license plate. Can I just pick a state with (1) no state taxes and (2) no inspection and emissions testing requirement? I mentioned inspection because my car's emissions and tags expire at the end of 2006, but I don't want to have to drive all the way back to get a stupid inspection in order to get my tags.

I'm considering getting a Mailboxes Etc. box in Delaware as my legal residence, getting a Delaware driver's license and registering the car there. Is this something that anyone has tried?

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Re: U.S. expats and state taxes
Old 01-18-2006, 11:31 AM   #38
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Re: U.S. expats and state taxes

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Bumping old thread. What about registering a car? I plan to move to Canada this summer, but I do want to keep my car with a U.S. license plate.
I'm considering getting a Mailboxes Etc. box in Delaware as my legal residence, getting a Delaware driver's license and registering the car there. Is this something that anyone has tried?
Don't know about Delaware, but my full in-laws (full time RVeers), are doing this in South Dakota.
I'll ask about the name of the outfit which handles their mail, registrations, driver license renewals etc.
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Re: U.S. expats and state taxes
Old 01-18-2006, 11:45 AM   #39
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Re: U.S. expats and state taxes

Curious to know, Honkie, if "your government" is the US government. Sounds like it isn't (?)

I was led to believe that the feds want to tax your worldwide income, to the exclusion of $80,000 (or whatever the current figure is) of earned overseas income which, depending in which foreign country this is earned, would be subject to taxation by the country where it was earned. I'd read that the only way to avoid this tax assessment is to renounce your US citizenship. Lucky you if you are from a country that doesn't chase down every non-resident.

I'm resigned to the federal taxes.. they really are lower than they would be if I were to transfer my cash and investment to European accounts. The US does provide its citizens with rights and privileges that I would be loth to give up. I'm just trying to get out of the claws of the state, since I am not living there nor am I requesting any services on their part.

For anyone considering moving overseas and closing their US accounts and abandoning their US mailing address, these are some of the reasons I want to keep one financial foot in the US:

- you'd have to get used to not buying stuff online, not even for gifts sent to friends and family. Most US Internet merchants require a US credit card with a US billing address.

- you could give the IRS your foreign address, but I don't trust the foreign mails as much as I do the USPS.

- Overseas bank accounts often a complete rip-off. Huge annual costs, terrible interest rates and transaction fees. All the "expat/offshore" havens are now toeing the EU line, with a big witholding tax.

- if you ever want to come back, a PITA starting completely from scratch. No credit history. No insurance history. No drivers license. Feh!

Of course, it's not all a bed of roses, since the grey area of state taxation and wills is giving me a migraine...

For BunsOfVeal, I assume Canada has regulations for how long you can drive on your US plates. At some point, won't they want to see Canadian insurance and Canadian registration? I think it would hinge on insurance. I know trips to Canada are covered by many insurance co.s, but will you find a Delaware provider that doesn't care about your de facto Canadian residence? If you have more than one claim, I think they would start to catch on.. plus you'd probably have to show up there to deal with paperwork after your "trip."

What are your reasons for wanting to avoid the Canadian system?
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Re: U.S. expats and state taxes
Old 01-19-2006, 10:54 AM   #40
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Re: U.S. expats and state taxes

BunsOfVeal,
I think my in-laws are using MyHomeAddress,Inc. in Emery, SD.
Look also here for more recommended alternatives:
http://www.rv.net/forum/index.cfm/fu...g/16665643.cfm
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