State Tax Returns and American Expats

Americans moving abroad realize that they have to file US expatriate returns and to report their worldwide income if they meet the tax requirements. However, some American expats living overseas might be subject to state tax filing too. Moreover, some states will even put a lien on taxpayer’s US bank accounts and other property if the state tax return is not filed and there is a state tax due. Consequently, it is essential for US taxpayers to learn the state tax filing requirements.

Are American expats required to file a state tax return?

Two factors determine whether Americans living overseas are required to file a state tax return.

Factor 1 – State of residency before moving abroad

Factor 2 – Ties to the last state of residency

Each state has its own set of rules. Some states do not impose a state income tax; other states will tax its former residents on the worldwide income unless they cut ties to the state. Let’s review the state rules.

Which states are favorable to Americans moving abroad?

Several states do not have a state income tax. As a result of it, its residents are not required to file state tax returns whether they live in the state or abroad. The following states are the most favorable to American expats:

Two states like Tennessee and New Hampshire are also friendly to American expats because they collect taxes on interest and dividends only.

Which states are not favorable to American Expats Residing Abroad?

The most unfavorable states to Americans moving overseas are New Mexico, Virginia, South Carolina, and California. These states impose a lot of restrictions. Moreover, these states will not release a taxpayer from the state tax return requirements unless they prove that they cut ties to the state. These states look at different factors to determine the ties to the state like dependents, a driver’s license, voting card, real estate, US address, bank account, mail, library cards, memberships etc .

Which states are neutral to US citizens and green card holders moving overseas?

Other states are neutral to Americans moving abroad. As long as an American has been outside of the state for 6 months and s/he can prove residency somewhere else, s/he will be released from the state tax return filing.

Are American expats living abroad required to file a state tax return if they own a property in a state?

It is quite common among American expats to own a house or condo in the USA. If a US taxpayer owns a rental property in a state, s/he will be required to file a state tax return in a corresponding state. It is important to report all rental income and deductions.

If American expats require help with state tax returns, please contact us. Expat tax experts at Expattaxcpaservices.com will be pleased to assist with various overseas tax issues.

How can American expats get more information about each state?

For the convenience of our clients, we prepared a list of all states below.


Wisconsin Department of Revenue Integrated Property Assessment System IPAS - PowerPoint PPT Presentation

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Wisconsin Department of Revenue Integrated Property Assessment System IPAS

that will eventually replace the State and Local Finance (SLF) . establishing the state's equalized values; . state shared revenue; . – PowerPoint PPT presentation

Title: Wisconsin Department of Revenue Integrated Property Assessment System IPAS

Wisconsin Department of RevenueIntegrated

Property Assessment System (IPAS)

  • March 3, 2006

Wisconsin Department of RevenueIntegrated

Property Assessment System (IPAS)

  • Agenda
  • What is IPAS? Why now? Long-term vision Jean

Gerstner

  • Timeline GIS plans Dan Davis
  • details, details. Jim Murphy
  • - You are welcome to ask questions at any time

    or hold them until the end of the presentation -

    Wisconsin Department of RevenueIntegrated

    Property Assessment System (IPAS)

    • increase efficiency
    • provide easy access to data for customers and

    external stakeholders.

    • What is IPAS?
    • A multi-year process improvement and computer

      system project

    • that will eventually replace the State and Local

      Finance (SLF)

    • Division's current processes and systems to

    Wisconsin Department of RevenueIntegrated

    Property Assessment System (IPAS)

    • What is IPAS? (continued)
    • State and Local Finance (SLF) Division is

    responsible for

  • establishing the state's equalized values
  • assessing all manufacturing and telecommunication

    property for property tax purposes

  • assessing and collecting taxes on utilities,

    railroads, airlines, mining, other special

    properties

  • providing financial management and technical

    assistance to municipal and county governments

  • state shared revenue
  • property tax relief payments for municipal

    services and the lottery credit program

  • tax incremental financing programs
  • property assessment administration and

    certification of assessment personnel.

  • Wisconsin Department of RevenueIntegrated

    Property Assessment System (IPAS)

    • What is IPAS? (continued)
    • Commercial off-the-shelf (COTS) software (Tyler

    Technologies) - provides the platform

  • Tyler and DOR - modify product to meet SLF and

    customer needs

  • First manufacturing property assessment
  • Next create a database that can be used to store

    state-wide property sales data. Stakeholders

    such as local assessors, municipal and county

    officials, and the public will be authorized to

    access data. Will be able to import and export

    data using standard tools such as Microsoft

    Office, text files, and XML transmission.

  • One component e-filing of Manufacturing Forms

    (M-Forms). E-filing of the M-P form was

    implemented in January 2006.

  • For more information http//www.dor.state.wi.us

    Wisconsin Department of RevenueIntegrated

    Property Assessment System (IPAS)

    • Why IPAS now?
    • To meet State Local Finance (SLF) Divisions

    Operational needs

  • SLF is facing numerous challenges including
  • Experienced staff retiring 50 to 60 of staff

    are expected to retire within the next three

    years

  • Positions lost Fifty-eight positions (30) have

    been eliminated in the last ten years while the

    number of programs administered has increased

  • Automation issues SLF has approximately 40

    computer systems that are not integrated and many

    are more than 20 years old.

  • Not meeting statutory requirements for field

    audits of manufacturing property

  • Wisconsin Department of RevenueIntegrated

    Property Assessment System (IPAS)

    • Why IPAS now?
    • To Improve Customer Service and/or Benefit

    External Stakeholders

  • Access to data and improved customer service
  • Time savings for stakeholders
  • - time savings in locating information.
  • - 24/7 Internet accessible data
  • - M-Forms (manufacturing) e-filing
  • Longer-term benefits
  • - Equalization Section
  • - Local Government Services Section
  • Wisconsin Department of RevenueIntegrated

    Property Assessment System (IPAS)

    • Communication With Stakeholders
    • May 18, 2005 letter to Municipalities and

    Counties from SLF

  • Purpose of new system
  • Plans
  • Goals
  • Communication
  • Second letter to Municipalities and Counties will

    be mailed in March with an update

  • Other WI state agencies State Agency Resource

    Wisconsin Department of RevenueIntegrated

    Property Assessment System (IPAS)

    • Project timeline thus far
    • May 2005 RFP released
    • July 2005 Vendor responses due
    • August - November 2005
    • Review proposals
    • Site visits
    • Select contractor Tyler Technologies
    • December February 2006
    • Develop contract including Statement of Work

    Wisconsin Department of RevenueIntegrated

    Property Assessment System (IPAS)

    • The IPAS project has pushed us to tackle some

    issues

  • achieving consistency in commercial and

    manufacturing fielded sales work

  • defining consistent manufacturing data capture

    rules for fields such as address

  • defining the best way to transition from (State

    Assessed Manufacturing (SAM) system to IPAS (what

    functions, timing, etc.)

  • defining the sales database.
  • Wisconsin Department of RevenueIntegrated

    Property Assessment System (IPAS)

    • GIS
    • We are working closely with David Mockert and

    Jerry Sullivan Department of Administration/Divi

    sion of Enterprise Technology

  • The GIO has the responsibility to coordinate

    Wisconsins geospatial information activities, to

    implement standards to facilitate

    interoperability of information related to

    homeland security, to make recommendations on

    awarding grants to fund geospatial data, and to

    create information sharing agreements with state,

    local and tribal governments.

  • We at DOR have similar goals with IPAS.
  • Wisconsin Department of RevenueIntegrated

    Property Assessment System (IPAS)

    • GIS (continued)
    • Many state agencies use parcel data. These

    include

  • Department of Transportation
  • Department of Natural Resources
  • Department of Administration
  • Department of Military Affairs (Emergency

    Management)

  • Department of Justice
  • Department of Agriculture, Trade and Consumer

    Protection

  • Planning stage
  • IPAS RFP and vendor evaluation did contain GIS

    elements

  • IPAS GIS implementation will be in 2007 current

    scope of work with Tyler Technologies does not

    Wisconsin Department of RevenueIntegrated

    Property Assessment System (IPAS)

    • GIS (continued)
    • Issues to be worked on include
    • Parcel numbering (our goal to create an

    inclusive system that also has recommended

    standards)

  • Defining an Enterprise Data Model for parcels
  • Data integrity (e.g., Positional accuracy)
  • Need process for updating and maintenance
  • Jim Pahl-Washa, DOR, is the GIS lead for IPAS.
  • Wisconsin Department of RevenueIntegrated

    Property Assessment System (IPAS)

    Wisconsin Department of RevenueIntegrated

    Property Assessment System (IPAS)

    Wisconsin Department of RevenueIntegrated

    Property Assessment System (IPAS)

    Wisconsin Department of RevenueIntegrated

    Property Assessment System (IPAS)

    Wisconsin Department of RevenueIntegrated

    Property Assessment System (IPAS)

    Wisconsin Department of RevenueIntegrated

    Property Assessment System (IPAS)

    Wisconsin Department of RevenueIntegrated

    Property Assessment System (IPAS)

    Wisconsin Department of RevenueIntegrated

    Property Assessment System (IPAS)

    • Questions
    • and
    • Discussion