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If I move abroad, do I have to pay state income taxes to Wisconsin?

Bankruptcy and Debt 3 views 3 answers
I plan to move abroad to a country with a very high tax rate this year, and want to get an idea how much money I will be losing. I will be selling my house, establishing a new domicile (although I won't be buying a house or a car there because that is simply not practical) and do not intend to ever return to Wisconsin. Do I still need to report my 2012 income earned abroad and get double-taxed by Wisconsin on this? How about subsequent years in which I will not have any income earned in Wisconsin? I can absolutely not figure this out from any of the Wisconsin tax literature, there is nothing there whatsoever concerning moving to a foreign country and even the domicile questionnaire only asks if I move to another "state" - so I don't even know if the answer to that is yes or no!

Attorney Answers

3
Curtis Lamar Harrington JrTax LawyerLong Beach, CA ·
No one in WI wants you to leave, they won't help you leave. In addition to the advice from the other Attorneys answering, you can make a big noise about your intent by filing IRS form 8275 both federally and with the state. That would establish your intent looking back a year or two from now. The biggest problem in terms of things you might not let go would be your drivers license and bank accounts. You will have to file Fbars and 6038D in future, so your tax prep bill will go way up. Is there another jurisdiction where you have a tie where you might be able to obtain driver's license and banking? Its just a thought, but domicile can be measured by how well you move into the next one, and I know from living overseas that its difficult to give up a local driver's license. Its up to you as to how far you go. At least the 8275 explanation will hopefully "estop" anyone from claiming in later years that you had "just made the decision for economic convenience". Please remember to designate your question's BEST ANSWER. Curt Harrington (562) 594-9784 http://patentax.com/curt/index.html
0 upvotes
Mark Maciolek ·
You should consult a tax professional about this question. But generally speaking, a state cannot tax you if you no longer have any connection to it. Americans are free to move about the country, so a state cannot force a citizen to remain in one state by imposing taxes on the citizen if the citizen leaves.
0 upvotes
Henry Daniel LivelyTax LawyerNewport Beach, CA ·
Each state has their own laws with regard to residency for state tax purposes. See a local CPA familiar with these matters to determine how you need to properly sever your ties with Wisconsin.
0 upvotes

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