Sunday, April 28, 2013

How can I avoid state taxes if I retire overseas?

From the CNN Money Help Desk:    If I retire overseas, can I lower my taxes by declaring residency in any state I want? — C. Czuchna, Gainesville, Va.  Answer: Not quite. You can't just declare residency; you have to live there before taking off. Steps to show you've really moved to the no-income-tax state of your dreams (such as Florida, Nevada, or Texas): buying a home (and selling your old one), getting a driver's license, and registering to vote.
Do all that only if you want to keep ties to the U.S. If you're cutting the cord, just emigrate from your home state of Virginia. To convince the tax man that you're not coming back, drop all local connections, down to your last golf club membership. You'll owe state taxes for the first full year, but that should be it, says David Mc Keegan, co-founder of Greenback Expat Tax Services.
As for federal taxes on U.S. income, you're on the hook no matter what you do.
— Beth Braverman










  • cats03  18 hours ago

    If I were to retire overseas, why would I want to retain US citizenship? Why not try to become a citizen of the country I'm moving to? If I were retiring overseas, I'd most likely want to get out of the entire US tax picture (city, state, federal).






  • Boodrow Malone  19 hours ago

    He will owe USA taxes only as long as he remains a citizen.






    • iledolp  9 hours ago

      If you don't create job in long term recession. Government or IRS sees lavish spending such as buying luxury cars, boat, etc and stealing social society accounts from disadvantage people or people with disabilities that aren't part of your family or living your household. You still have to pay large income taxes. Higher income taxes.
      For example, if a person don't have a job or no income. He can't buy wheelchair, hearing aid, etc. A con artist steals social society number by tapping it. He/she buys luxury boat, cars, house, etc. everything will be confiscated by U.S government, IRS, GAO. Because the a person can't buy health aid. He/She can't take care himself for next 50-100 years and cost healthcare will be expensive.
      You can't avoid state taxes if you retire overseas with billion or millions of dollar. You still have to pay back government royalty and interest. Even Wall Street's missing trillion dollars.






      • Grumpy2012  13 hours ago

        Any money overseas can be held overseas without paying American taxes (ask GE and Apple),
        It's only when your bring the money back into the US (repatriate) that taxes are applied.
        However US Customs allow travelers to bring in up to $10,000 cash without declaring it.






        • Kris Hundredmark  14 hours ago

          Can someone still acquire their social security if they've retired abroad though? Seems better to "move" to a UPS store mailbox and have your retirement go there and then transfer it overseas






        • Charles Fulford  15 hours ago

          So does the overseas tax exemption only apply when you work overseas. I worked overseas for two years and did not pay federal income tax(up to a certain amount anyway)...only social security. Are there different rules if you live overseas but not work. If you took all your money and put it in a bank where you were moving to I would think there would be no way for the US Govt to get their hands on it
        Posted on 7:22 AM | Categories:
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