# Do I have to pay State Tax on non-earned income as an American living in Europe?



## SteveHolt (Mar 28, 2016)

I searched around but couldn’t find a clear answer on this. Hopefully someone here can help. I am well aware that as an American I need to report and pay Federal taxes on my dividend and interest income from the stock trading I do through a Fidelity account. However, do I have to pay state taxes on that income? I live overseas full time and my house in Georgia was rented out all of 2015. I plan on filing a non-resident Georgia state return in order to pay Georgia taxes on the rental income, which makes sense because the house is in the state. However, what about my dividends paid from various stocks I own? Again, I know I pay the Fed, no problem with that. I can’t imagine I have to pay Georgia state taxes for income that isn’t generated in that state and to a state I am not a resident in. Has anyone else dealt with this or know how this is treated?

Thanks in advance!


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## Bevdeforges (Nov 16, 2007)

In general terms, once you establish residence overseas, you are no longer considered resident in any state in the US. There are a few states that do their best to hold on to you for tax purposes, but in most cases, you would file a NR (non-resident) form to account for any income coming from that state. Simply owning a house in Georgia shouldn't make you "tax resident" in the state - though your intention to return could factor in here.
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

Have you checked Georgia's definition of tax residency?


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## SteveHolt (Mar 28, 2016)

Thanks for the quick responses. It doesn't look like it will be an issue for Georgia thankfully. Some other states (Virginia and others) do make it much more difficult.


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## ForeignBody (Oct 20, 2011)

From the second answer on this link, it looks like you have to file because you have income in GA. However, that does not mean you will be taxed on your none GA income.

Filing reResidents, Nonresidents, Part-Year Residents, and Military Personnel | Department of Revenue


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## SteveHolt (Mar 28, 2016)

Yeah, that was the link I found as well. I think if I file a non-resident return claiming my Georgia rental income revenue I should be set. Thanks!


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