Weekly Round-Up: The State Tax Treatment of U.S. Expats

Taxpayers who move in and out of the country should fully consider the state tax consequences of living and working abroad, Mary Beth Lougen, of American Expat Tax Services, explains in this week’s issue of the Bloomberg BNA Weekly State Tax Report.

Lougen explains the general considerations states use in determining whether a taxpayer is a domiciliary of their jurisdiction, and makes recommendations as to the steps practitioners can help their clients take to minimize risks of state tax liability.   

For example, Lougen recommends that taxpayers understand the choices of terminating domicile or keeping it— and know the ramifications of both. If a taxpayer decides to keep their domicile, they should understand what it will cost in the way of taxes and tax preparation fees, so they can speak with their employer about a tax equalization package that includes state tax considerations, Lougen states.  

Lougen’s in-depth analysis of this issue, along with a comprehensive 50 state chart on the state tax treatment of expatriates, c an be read here .   

In other developments…

How high are capital gains tax rates in your state , the Tax Foundation asks

Taxpayer victory has significant implications for other Texas tax disputes , according to the Texas State and Local Tax Law Blog

Inside the New York Budget Bill Part One: Combined Reporting , a new report by McDermott Will & Emery

Compiled by Priya D. Nair
Follow us on Twitter at:
Join BNA's State Tax Group on LinkedIn here .