Are you looking for further information on how to file taxes as a US citizen living abroad and American taxes? You’ve come to the right spot; this blog will go through it in depth.
The state in which you resided and whether or not you still have ties to the state decide whether or not you must file state taxes while living abroad. If you’re considering relocating outside of the United States, this information will assist you in making educated tax decisions. If you’ve already moved to another nation, this article will explain what filing requirements you’ll need to complete and whether you should cut ties to avoid further tax obligations. If you live abroad as an ex-pat, you may not be obligated to pay state taxes. Some states do not levy any kind of state income tax.
2022 Income Tax Rate (Taxes Due April 2023 Or October 2023 With An Extension)
For the 2022 tax year, there are also seven federal tax brackets: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Your tax bracket is determined by your filing status and taxable income for the 2022 tax year.
2022 Single Filers Tax Brackets
| If taxable income is: | The tax due is: |
|---|---|
| Not over $10,275 | 10% of the taxable income |
| Over $10,275 but $41,775 | $1,027.50 plus 12% of the excess over $10,275 |
| Over $41,775 but not over $89,075 | $4,807.50 plus 22% of the excess over $41,775 |
| Over $89,075 but not over $170,050 | $15,213.50 plus 24% of the excess over $89,075 |
| Over $170,050 but not over $215,950 | $34,647.50 plus 32% of the the excess over $170,050 |
| Over $215,950 but not over $539,900 | $49,335.50 plus 35% of the excess over $215,950 |
| Over $539,900 | $162,718 plus 37% of the excess over $539,900 |
2022 Married Filing Separately Tax Brackets
| If taxable income is: | The tax due is: |
|---|---|
| Not over $10,275 | 10% of the taxable income |
| Over $10,275 but $41,775 | $1,027.50 plus 12% of the excess over $10,275 |
| Over $41,775 but not over $89,075 | $4,807.50 plus 22% of the excess over $41,775 |
| Over $89,075 but not over $170,050 | $15,213.50 plus 24% of the excess over $89,075 |
| Over $170,050 but not over $215,950 | $34,647.50 plus 32% of the the excess over $170,050 |
| Over $215,950 but not over $323,925 | $49,335.50 plus 35% of the excess over $215,950 |
| Over $323,925 | $86,127 plus 37% of the excess over $323,925 |
2022 Head of Household Tax Brackets
| If taxable income is: | The tax due is: |
|---|---|
| Not over $14,650 | 10% of the taxable income |
| Over $14,650 but $55,900 | $1,465 plus 12% of the excess over $14,650 |
| Over $55,900 but not over $89,050 | $6,415 plus 22% of the excess over $55,900 |
| Over $89,050 but not over $170,050 | $13,708 plus 24% of the excess over $89,050 |
| Over $170,050 but not over $215,950 | $33,148.50 plus 32% of the the excess over $170,050 |
| Over $215,950 but not over $539,900 | $47,836.50 plus 35% of the excess over $215,950 |
| Over $539,900 | $162,218.50 plus 37% of the excess over $539,900 |
2022 Married Filing Jointly Tax Brackets, Sourced: Forbes
| If taxable income is: | The tax due is: |
|---|---|
| Not over $20,550 | 10% of the taxable income |
| Over $20,550 but not over $83,550 | $2,055 plus 12% of the excess over $20,550 |
| Over $83,550 but not over $178,150 | $9,615 plus 22% of the excess over $83,550 |
| Over $178,150 but not over $340,100 | $30,427 plus 24% of the excess over $178,150 |
| Over $340,100 but not over $431,900 | $69,295 plus 32% of the excess over $340,100 |
| Over $431,900 but not over $647,850 | $98,671 plus 35% of the excess over $431,900 |
| Over $647,850 | $174,253.50 plus 37% of the excess over $647,850 |
To establish your tax status and any requirements to file while staying overseas, you must authenticate your residence status in the prior state you resided in and determine if any of your income is linked to a U.S. state that needs state income filings. Depending on your circumstances, you may not need to file at all. If you’ve been out of state for more than six months, most states will consider you no longer a resident. You may be asked to show documentation to the state that you are no longer a resident and have moved out of the country.
If you are a U.S. expat, states that recognize you are not a resident will not force you to pay state taxes or file a state tax return. If they continue to earn income from that state, expats simply need to submit a state tax return in addition to a federal tax return (including pension or retirement income).
When it comes to outsiders, some governments are stricter than others. They have stringent rules for determining residency and cancelling it. You may be obligated to file and pay state taxes even after you have left one of these states if you are a resident of one of these states.
Consider moving to a state where there is no income tax. If you have the time and resources, it may be more advantageous to relocate within the United States before moving abroad. While the amnesty programme will not help you avoid state tax penalties, it will eliminate penalties on federal tax returns. You must have spent at least 330 days abroad of the United States in the preceding three years to be eligible for this programme. You’ll also have to sign a waiver stating that you didn’t purposefully file your US tax returns.
If you have any questions or want assistance with state taxes, always seek the guidance of a competent tax practitioner who specializes in working with foreigners. Don’t be concerned if you were unaware that you required to file state tax forms until now. You can utilize the streamlined method to file back state taxes and catch up on unpaid federal taxes from previous years. As you can see, determining if you need to file an expat state income tax return and how to do so might be challenging. Working with a seasoned company like USA Expat Taxes is useful in this regard. Our specialists will quickly determine whether you need to fill out a state tax form. Our CPAs are also aware with each state’s filing procedures, so if you do need to file a state return, we can help you complete and file it in such a manner that your expat state income taxes are minimized.