U.S. expats and state taxes

[cute fuzzy bunny]

Note that a lot of states (and perhaps provinces in non-us countries) require that you register your vehicle locally and become licensed if you reside in that state. "residing" usually involves something pretty minor, like sleeping more than 14 nights in the state. In a town with a military base, oddball license plates wont stand out. Away from that, it appears the local police will "notice" you. I got stopped after living in california a couple of months with my MA plates. I told him I had driven out for a visit and wasnt staying when he asked about when I was going to get my local license and registration. "I've seen your car at least three times in the last couple of months. You live here. If I see you again I'm going to write you a ticket". Maybe he was bluffing me. I dont think he was.

[ladelfina]

Yes, they are definitely on the lookout for insurance scofflaws. It was a big thing in MA to ferret out the cars with NH plates that were actually owned by MA residents, due to the big difference in insurance rates and also sales tax.

[Outtahere]

It's STILL a big thing in the border towns of MA to turn in people registered in NH. Drive down any street after 5pm and you'll see every 3rd or 4th car with a NH plate and we know they ain't all visiting.

[Honkie]

Originally Posted by ladelfina

Lucky you if you are from a country that doesn't chase down every non-resident.

As has been mentioned on other threads, I beleive the US is the ONLY country that chases down every citizen, resident or not, for taxes on worldwide income. So on that point it's "unlucky you" not "lucky me".

And nope, clearly my home Gov is not the US.

The reason for my post was to show how different countries view their citizenry. As I said, I have friends and relatives who are expatriated US citizens, and they grumble constantly that my home Gov has no right to know nor interest in where I am or what I earn when out of the country, yet theirs (the US) will never give up on extracting their pound of flesh.

[BunsGettingFirm]

Originally Posted by sailor

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

Sailor, thanks for that link to your parents' home-address service.

In response to other posters, the reason for my wanting to avoid Canadian insurance & tags is that I have read that registering a car in Canada would involve"importing" a car into Canada, which creates a lot of red tape and fees. LOL, my POS Dodge was actually made in Ontario, but that's life.

[ladelfina]

If it's a POS, sell it and buy an equivalent Canadian POS?

Can you quantify those "import" fees, or are you just speculating? They may not be as onerous as you think.

Could there be a special POS category eligible for reduced tariffs?

[cute fuzzy bunny]

I wonder if the car models in canada have to have "eh?" added to the end of the names...

[chrishansenhome]

While I'm not a lawyer, I've lived in the UK for 14 years now and have a good practical knowledge of what's involved in living overseas and filing taxes.

Domicile means "the place where you normally live" in this context. So, my domicile changed from California to the United Kingdom when I moved here in January 1994.

For voting purposes, I vote only in Federal elections in California (including primary elections). I do not vote in state elections as this might convey to the state that I'm planning to return. For the poster who wanted to know where her child, born in Japan but a US citizen by descent, would vote: s/he should vote in the same place that you last were registered in the United States.

If you vote in state elections the state can infer that you want to come back at some point in the future. And, if you do return to the same state after a period abroad, they will likely hit you for as much back tax as they legally can along with penalties. So, if you return to the US, live in another state for a while to obviate the chance of getting soaked for back taxes.

I am unsure about the effect of keeping a driver's license in the state in which you were living when you moved overseas, as I don't drive now and my only license (from Illinois) expired 10 years ago.

The current expat tax laws have changed yet again, and not in a good way. In 2003 Congress almost removed the foreign earned income exclusion--the Senate came within one vote of doing it. It is still there, but if you live in a low tax country (Singapore, for example) you will get socked for income above the exclusion amount. Some self-employed people may get hit with the Alternative Minimum Tax, although the rules for that have changed yet again this year, I understand.

If you can, best go to a US tax accountant practicing in your country to have him or her make out your tax return. I have never done this before, but I'm going to do it this year. As the UK's tax rate is higher than the US one, I am not likely to have to pay much if anything. However, I'd rather a professional told me that than try to work it out myself.

I am also a UK citizen, and am considering renouncing my US citizenship as I don't intend to move back to the US and find the red tape of having to fill out a tax return each year a bore. There are tax implications to this as well, but I don't think that in my case (as I don't own property or have a massive amount of money) they will apply. I'm going to talk to the accountant about it when he does my taxes, though.

[Trek]

Here in Estonia you have to forfeit your US (or wherever you're from) drivers license when you get the Estonian one. You can't have two DL's by law. Here a DL isn't used as a general form of ID like in the States, it's solely for driving the car.

But if I ever return to the States, nothing to stop me from telling the DMV I lost it and getting a new one.

[Trek]

Originally Posted by ladelfina

Biggest drawback to living in Italy: no cheddar cheese.

Funny, I had the hardest time finding cheddar here too. I did finally find one grocery store chain that carries one brand of cheddar.

I don't normally eat it though. I was discussing cheese with my wife and she had never had it so I just wanted her to try it.

[pedorrero]

I'm a fan of the web site "daily reckoning" and its founder Bill Bonner. He's an American ex-pat living in London/Paris/where-ever these past twenty years or so. Recently, he wrote about the family hassle of becoming a "non-resident resident" of Florida so he could save on his taxes (he originally was from Maryland.) No details of it were offered, but I guess it is a thing to do if you are in the higher income brackets. * SIGH * I should have such a problem. I like FL, but the lack of income taxes is not a big factor to the likes of me, with income in the low $20K's. Lately, we are more than making up for it with property taxes! I have no idea about registering a car. While I never had a car overseas in the military, I used to like the mint-green "USA" license plates you would see around Washington DC. I don't know if they still have these, but that would be cool ... I guess they are theoretically for overseas. I worked with one ex-AF guy who imported his car, an old wreck, and drove for a couple years on military plates. I think his said "AFG" (air force Greece?) He finally did get some VA plates though.

[Notmuchlonger]

Is there anyway to give up your citizenship?

[Trek]

Originally Posted by Notmuchlonger

Is there anyway to give up your citizenship?

Yep.

Renunciation of U.S. Citizenship

[bssc]

Originally Posted by Trek

Yep.

Renunciation of U.S. Citizenship

This is especially important for people who have dual citizenship. We had friends who were born in Turkey (on base) went elsewhere and then came back. The problem was that the son turned 18 while in Turkey and then became eligible to be drafted in the Turkish army. There needed to be some paper shuffling to get out of that one.

I owe the Iranian Army service and they do not accept renunciation of their citizenship.

[Notmuchlonger]

Be a great way to not pay state taxes then.

[Trek]

Originally Posted by Notmuchlonger

Be a great way to not pay state taxes then.

Maybe State, but not necessarily Federal. You can still be taxed up to 10 years in some circumstances. Though I don't know how well they can enforce it you've already been released from citizenship.

Expatriation Tax

Plus, your renunciation can be denied for whatever reason the govt sees fit. Not as simple or easy at it seems.

[Notmuchlonger]

Originally Posted by Trek

Maybe State, but not necessarily Federal. You can still be taxed up to 10 years in some circumstances. Though I don't know how well they can enforce it you've already been released from citizenship.

Expatriation Tax

Plus, your renunciation can be denied for whatever reason the govt sees fit. Not as simple or easy at it seems.

Well I dont agree with that law thats for sure. Once you renounce that should be it.

[Trek]

Originally Posted by Notmuchlonger

Well I dont agree with that law thats for sure. Once you renounce that should be it.

Everyone agrees it should but the IRS.

Anyway, once you've renounced and are residing in another country, it would be hard for them to come into your new country and collect. And it wouldn't be worth the expense for some Joe Schmo that doesn't have the big bucks.
But they could nab ya if you ever tried to re-enter the States one day.