Discussion:Foreign Wages and State Taxation
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| If you identify the state or states with which you are concerned, we can give you more specific guidance. However, the first step in the inquiry is to go to the state department of revenue's web site (you can link to it through http://taxadmin.org) and look up the statutory definition of a tax resident.}} | If you identify the state or states with which you are concerned, we can give you more specific guidance. However, the first step in the inquiry is to go to the state department of revenue's web site (you can link to it through http://taxadmin.org) and look up the statutory definition of a tax resident.}} | ||
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| + | {{ForumReplyPost|UserID=Jokadah|Date=7 April 2008|Text=Katie J, I have a client that earned money in Singapore, she was only there three months. She lives in California and you seem to be the resident expert on California. I'm assuming I have to include it as it is world wide income. Thanks ahead of time.}} | ||
Revision as of 04:43, 7 April 2008
Discussion Forum Index --> Basic Tax Questions --> Foreign Wages and State Taxation
Discussion Forum Index --> Tax Questions --> Foreign Wages and State Taxation
| 6 April 2008 | |
| I've gotten several new clients this year that are working overseas and so I'm filing a 2555 for the foreign income exclusion. My question is related to state taxation. Since the income wasnt earned in any particular state do I just not file a state return? Or do I put all earnings to their resident state? I've tried researching this issue and i'm not having much luck. | |
Nancyshoemake (talk|edits) said: | 6 April 2008 |
| Drexyl:
Generally you can look at the state filing requirements...my guess is that you are not required to file a state return if they were not physically present in the state and did not earn wages in that state. Each state has specific requirements.... | |
| 6 April 2008 | |
| It depends on the state and the facts and circumstances.
Many states define a tax resident to include all domiciliaries, regardless of whether they are present in the state at all during the taxable year. Usually an expatriate employee does not establish a new domicile in the foreign country, but retains the original domicile until he or she moves to a different location (usually within the U.S.) with the intention of remaining there permanently. Many such states have special rules, however, that allow a domiciliary who is present in a foreign country for a minimum period of time, with limited returns to the home state during that time, to be treated as a nonresident. If you identify the state or states with which you are concerned, we can give you more specific guidance. However, the first step in the inquiry is to go to the state department of revenue's web site (you can link to it through http://taxadmin.org) and look up the statutory definition of a tax resident. | |
| 7 April 2008 | |
| Katie J, I have a client that earned money in Singapore, she was only there three months. She lives in California and you seem to be the resident expert on California. I'm assuming I have to include it as it is world wide income. Thanks ahead of time. | |
