Should or must I file a state income tax return if I live abroad?

If you are a US citizen or permanent resident living abroad, you not only have to make sure to file a tax return with the IRS each year if you meet the minimum income requirements, you may also have to file a state return.
Depending on the state where you lived immediately before your move, you may need to file a non-resident state income tax, even if you live abroad. Do not assume that since you left the United States, you are not required to file a state tax return. Each state has its own set of rules it considers a “resident” and their own minimum deposit requirements. Most states, but not all, also allow the exclusion of foreign income earned in determining taxable income.


If you’re like many expats and green card holders, you kept your home in the US when you have moved abroad and started to rent. The states want to tax individuals on income they earn in this state. Thus, the income from your rental property will be taxed in the state where the property is located. So if you meet the minimum deposit requirements for this state, you have to file a state tax return.
Most states will allow you to be treated as non-resident if you are physically present outside the state more than six months in the year.
Four states are ending your residence very difficult:
• California,
• New Mexico
• South Carolina
• Virginia
If you have moved from one of these states, it is unlikely that you were released from your filing requirement. In each of these states, you must prove that you will not return to the state. If you can not prove it, you must file a state tax return. They look at several different factors to determine whether you can return to the state at a given time. These factors include: real estate mortgages, rentals, voter registration, driver’s license and utility bills.
If you have moved to a state that does not impose income tax, consider yourself lucky not to have to deal with the hassle and cost of preparing and filing a tax return for the State. The states that do not impose tax on state income are:
• Alaska
• Florida
• Nevada
• South Dakota
• Texas
• Washington
• Wyoming
Two states have a limited income tax on individuals. The tax is based on income received as dividends and interest only.
• Tennessee
• New Hampshire