American expats are happy to quickly end their tax ties to their former state of residence. Unfortunately, they are not always able to completely do so. This may result in them continuing to be considered tax residents for state tax purposes. Several states, such as New York, California, New Jersey, Pennsylvania and others, may continue to treat and tax their taxpayers who work abroad as residents.
Spending too much time physically there, keeping a driver’s license, voting for state offices, visiting doctors, maintaining social connections, or even keeping the old house can be indicators that potentially trigger continuous residency for state tax purposes. Even when you are no longer a resident, filing obligations can continue if there is income within the state, such as a business interest or rental property located there. Thinking that your rental property is losing money does not change the filing requirement by the way!
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