Expatriate Tax Returns Warns U.S. Expats: State Taxes May Still Apply After You Move Abroad

U.S. citizens living overseas may be surprised to learn they could still owe state taxes—even after relocating internationally. Expatriate Tax Returns is advising expats to review their ties to former states of residence, particularly those with strict residency enforcement such as California, New York, New Mexico, and Virginia.

“Many expats assume their move abroad automatically ends their state tax obligations,” says Diane Siriani CEO of Expatriate Tax Returns. “But unless they take specific steps to sever those ties, they may still be considered residents for tax purposes.”

Key Indicators of Continued State Residency:

• Maintaining a home or mailing address in the state
• Holding a state-issued driver’s license or voter registration
• Returning frequently or maintaining financial accounts and business interests

States that suspect continued residency can levy back taxes, penalties, and interest, and may audit former residents years after departure.

How to End State Residency:

To avoid these issues, expats should formally terminate their state residency by:

• Selling or renting out property in the state
• Updating mailing and voter registration addresses
• Cancelling in-state driver’s licenses
• Establishing legal residence in their new country
• Filing a final part-year return and notifying the state of non-residency

Each state has different rules, making expert guidance essential. Expatriate Tax Returns offers tailored assistance to help expats navigate state filing requirements, determine residency status, and avoid unexpected tax bills.

For help with state and federal tax compliance while living abroad, contact Expatriate Tax Returns at (561) 715-0630 or visit www.expatriatetaxreturns.com.

About Expatriate Tax Returns

The firm, proudly woman-owned by Diane Siriani, a CPA, along with her team of experienced tax accountants, has been at the forefront of the profession for over 30 years, utilizing the best industry technologies to serve clients effectively and efficiently. Thanks to the flexibility offered by the internet, we have been able to service US citizens located anywhere in the world…quickly, efficiently and professionally.