# US Citizen living in UK since 2017 - Is it required to file a state tax return?



## nilssonc (Feb 27, 2021)

I am from Utah, and under the domicile rules per their gov website here https://incometax.utah.gov/instructions/utah-domicile, I have been absent for at least 761 consecutive days, never returend, and mee the other criteria for having no domicile.

To me, this means I don't have to file a Utah state tax return.

But my question is - is it required to have to file a state tax return somewhere? I don't/wouldn't qualify for domicile in any other state, so is it ok to only submit a federal tax return and that's it?

Thanks,

Chad


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## Bevdeforges (Nov 16, 2007)

No, you don't have to file a state tax return unless you are considered "resident" in a state.


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## Adar (Dec 11, 2013)

Sir,

I assume you are still a citizen on the U.S.A.

U.S.A is unique because the state taxes its citizens and holders of green cards on their global income does not matter where they live (subject to DTA between the country you generate income in and the U.S.). As such, yes, you need to file tax return even if you generate zero income in the U.S.A.

If you do not want to file return and to pay tax in the U.S. legally, rescind your citizenship/green card, otherwise you are very likely to be in a breach of the laws of the U.S.A. If in doubt, consult with your tax advisor who can review the full context of your income and assets in detail.

Just read this: Taxpayers Living Abroad | Internal Revenue Service (irs.gov)


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## Bevdeforges (Nov 16, 2007)

Just to clarify here - the question was concerning state income tax, specifically the state of Utah. While you're correct in that the US (Federal government) insists on taxing its citizens and permanent residents who live overseas, the state governments don't have that authority except for those who maintain significant assets (such as a home) in the state.


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## 255 (Sep 8, 2018)

Nilssonc -- To your questions:

1. "But my question is - is it required to have to file a state tax return somewhere?" No, but some states make it hard to change domicile. My own parents routinely paid Colorado taxes, for decades, while living overseas (they were always domicile in Colorado with an intent to eventually return, but not resident, although they never did return.) I changed my domicile to a "no tax" state, as soon as I could. Residents of no tax states do not pay state income taxes. I've read your "Utah" link, and think you're safe, assuming you don't currently have assets, like a house, in Utah.

2. "I don't/wouldn't qualify for domicile in any other state, so is it ok to only submit a federal tax return and that's it?" Yes, of course. Everyone has a domicile, but it doesn't have to be in the U.S. Assuming you are currently in the UK and pursuing permanent resident status, I would make the case that the UK is your current domicile. Florida actually uses a "Declaration of Domicile" to establish domicile in Florida -- It might be an option for you. Of course, if you are already "out" of the system in Utah -- I don't see you having any issues. Only if Utah questioned your domicile would you have to prove by the "preponderance of evidence" that your domicile is where you are currently (see Test 3, in the link you provided.) Cheers, 255


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## Moulard (Feb 3, 2017)

Bevdeforges said:


> No, you don't have to file a state tax return unless you are considered "resident" in a state.


This is not technically correct. If you are considered a non-resident of the State you _might_ have to file a tax return if you had income sourced from that state.

Consider for a moment the following would be considered (among others) which could very well exist for someone who has left a state

Interest from an UT based bank account
Rental Income from real property located in the state
Performing business services for a business (UT has moved to market based sourcing rules for some business income)


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## Bevdeforges (Nov 16, 2007)

It's rare that simply having interest from a bank account will render one subject to state income tax. But as I mentioned, any "substantial" asset in the state (property, a business, etc.) may well create a tax obligation, whether on a resident or non-resident basis.

However, to answer the original question that started this thread, it is not required to file a state tax return simply because one files (and is obligated to file) a Federal return. (Another way, BTW for the FreeFile tax services to deny filing assistance to overseas residents - some of the services require you to file and pay for a state return if you wish to use their Free File services.)


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## Sean-The Cloud Expat (Feb 28, 2021)

nilssonc said:


> I am from Utah, and under the domicile rules per their gov website here https://incometax.utah.gov/instructions/utah-domicile, I have been absent for at least 761 consecutive days, never returend, and mee the other criteria for having no domicile.
> 
> To me, this means I don't have to file a Utah state tax return.
> 
> ...


Did you earn income from this State ? Do you have a home or a Rental Property here. If no, then just file your federal return. Virginia, New Mexico, California, and South Carolina are the sticky states for expats. Hope this helps


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