# Illinois state tax obligations



## expatcipher

I've been out of the USA for 10 years living abroad but was formerly a resident of Illinois for several years. 2 or 3 times a year I go back to the US to visit family and friends. I have voted in federal elections, kept my drivers license, a car that I drive when I return (family drives when I'm away) and some bank/brokerage accounts open. I haven't filed an Illinois state tax return since 2009. Most of my income is salaried in the countries I've lived in but there is some US interest income as well. I'm now contemplating moving back to the US and establishing a residency in a no tax state. I'm not worried that Illinois may attempt to tax my global income for the years that I've been away. Does anyone have any experience with a similar scenario? If not, are there any accountants that you would recommend that have significant expertise in expat state tax ramifications after repatriation?


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## expatcipher

I meant "I am now worried" instead of "I am not worried"


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## Bevdeforges

Although there are a few states that can be overly tenacious about giving up a state taxpayer "just because" they've moved abroad, I don't believe Illinois is one of them. (And if it were, you probably would have heard from them by now.)

Voting in Federal elections is specifically NOT considered a factor in determining residence. As an overseas resident you HAVE to vote from the last address you lived at before you left the country. (Well, you're "supposed" to anyhow.) The bank and brokerage accounts, too, should not be enough to establish residence for tax purposes. I'm sure both the banks and the brokerages have out of state customers.

The driver's license is a little different, but probably isn't enough to make you a state resident for tax purposes. What the driver's license could subject you to is jury duty, depending on where they draw their lists of potential jurors from. 

I wouldn't worry about Illinois state taxes on your return. It's questionable whether or not they'd have any idea that you have repatriated to the US, particularly if you don't go back to Illinois. We have lots of folks here on the forum who keep a "mail drop" address back in the US - for banks and other agencies that don't seem to appreciate their "foreign" customers.


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## expatcipher

Bevdeforges said:


> Although there are a few states that can be overly tenacious about giving up a state taxpayer "just because" they've moved abroad, I don't believe Illinois is one of them. (And if it were, you probably would have heard from them by now.)
> 
> Voting in Federal elections is specifically NOT considered a factor in determining residence. As an overseas resident you HAVE to vote from the last address you lived at before you left the country. (Well, you're "supposed" to anyhow.) The bank and brokerage accounts, too, should not be enough to establish residence for tax purposes. I'm sure both the banks and the brokerages have out of state customers.
> 
> The driver's license is a little different, but probably isn't enough to make you a state resident for tax purposes. What the driver's license could subject you to is jury duty, depending on where they draw their lists of potential jurors from.
> 
> I wouldn't worry about Illinois state taxes on your return. It's questionable whether or not they'd have any idea that you have repatriated to the US, particularly if you don't go back to Illinois. We have lots of folks here on the forum who keep a "mail drop" address back in the US - for banks and other agencies that don't seem to appreciate their "foreign" customers.


Thanks, good information.


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## Jimmssa2018

I'm in a similar situation (have kept and renewed my Michigan driving licence and bank account while living in the UK for over 5 years) but I have just returned to Michigan to switch my UK visa. Technically I'm now a resident in Michigan but only for a couple months. Although I was living and working in the UK for all of 2018, I'll have to put my Michigan address down (my parents house) as my current address for my federal taxes (claiming exemption) - does that mean I'll need to submit a Michigan state tax return this year or even next year even if I don't earn any wages while I'm here?


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## Bevdeforges

If you were living and working in the UK for all of 2018 I wouldn't think that you'd have to file anything for the state of Michigan. 

For next year (i.e. this year, 2019) it will depend on how long you stay in Michigan. But if you don't earn anything while in the state, I suspect you won't have to file a state return.


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## Moulard

Words like resident and domicile have pretty specific meaning from a tax perspective. (read I would be careful about saying you are resident in Michigan, if that is not what you want to argue).

I believe Michigan is a domicile state. Your domicile is where you have your permanent home. It is the place you plan to return to whenever you go away. You may have several residences, but you can have only one domicile at a time.

If you were only in Michigan for a couple of months while waiting for a visa switch then you may not have changed your domicile back to Michigan. Its one of those murky areas, where things boil down to a preponderance of evidence. Having a Michigan DL would be a tick in the domicile column, as well as a Michigan address, but if you have maintained employment, bank accounts, a home in the UK, would suggest that you are only temporarily in Michigan.


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