Cheapest States To Retire In USA for Expats returning

Many expats after living and working abroad for many years plan  to retire back in the USA. Marketwatch has done a study which shows the cheapest and most expensive states in which to retire.  Hawaii is the most expensive state with California coming in number 2.  The cheapest state is Mississippi.  READ DETAILS OF STUDY HERE   It will show you the cost of living, etc. for all of the states in the US.

You also need to consider things from your personal income tax point of view. The states that have no income taxes include:

• Texas
• Florida
• Nevada
• Washington
• Alaska
• South Dakota
• Wyoming

Contact us if you have questions or need to know more.   taxmeless@gmail.com  Kauffman Nelson LLP CPAs and Don D. Nelson, Attorney at Law.

Wyoming Deemed Best of Income Tax Free States

If you are a nonresident or expatriate and need to set up a US corporation for your business, Wyoming is a good choice. Other states that are  state income tax fee and excellent include Nevada, Washington, Florida and Texas.  Operating the US side of your business in one of these states can save you having to pay state taxes.

Read more about Wyoming below:

http://tucson.com/ap/commentary/wyoming-the-fairest-of-the-low-tax-states/article_dcab31e2-289d-5998-84db-08fef5ddfd78.html

5 Most Tax Friendly States For Expats or Nonresidents to Locate a U S Business

Read the following link. Wyoming is no. 1. We recommend Nevada for ease of operation. Its no. 3.

http://www.dailyfinance.com/2014/02/15/the-5-most-tax-friendly-states-for-running-a-busin/

Expats Avoid State Taxes -Five States with Highest Income Tax Rates

As an US expatriate living and working or retired abroad, you can avoid paying state taxes and save substantial amounts of  income taxes.  It is very important because state laws do differ, that you take the proper steps to abandon you state tax domicile. Some states often allege you have still maintained that status if you keep sufficient contacts with the state or have an intent to return to that state in the future. It is only after you return from your assignment abroad, and that state asks about your unfiled state tax returns, that this issue usually arises.  By then, it could be too late to take the proper precautionary steps to avoid the problem.

CNBC has named the five states with the highest state and local income taxes as California, Hawaii, Vermont, Oregon and New Jersey.

California has a rule which allows you to claim non-residency status  for state tax purposes while living abroad even if you keep contacts with the State which is known as the "safe harbor rule."  To qualify you must:

• Live and work under a written contract abroad for at least 545 days
• Not earn more than $200,000 in investment income
• Not return to California more than 45 days during any calendar year.

Under states have other various schemes to determine if they can still hit you with state income tax while you are abroad. You need to review the rules of the state you live in to determine how difficult it will be to cut state income tax ties.  Need help with this important tax planning step?  Email us at ddnelson@gmail.com. 

US Expatriates Can Avoid Paying State Income Taxes with Proper Planning

Many US expats wish to maintain a US mailing address or home in the US , or US state drivers license, etc. but do not want to risk having to pay any state income taxes (there is no Federal requirement that you maintain a state tax domicile if you live and work outside of the US).   You should check the tax laws in your state of residency to see what difficulties you may encounter trying to stop paying state income taxes when you do chose to live and work abroad. Many states have laws which  attempt to keep their residents paying state income taxes (even though an ex resident may have moved their residence abroad) while other states make it easy to stop paying state tax.   California, Virginia, New Mexico and a few other states are those that make it difficult  to stop paying state income tax when you change your domicile to one outside of the US.

One easy solution you can use to attempt to avoid paying state income taxes when living and working abroad, is to move your US address, tax domicile, voter registration, drivers licenses, etc.  a state with no personal income taxes. The US states which do not have personal individual income taxes. Those include:

Alaska New Hampshire Tennessee Florida South Dakota Washington Nevada Texas Wyoming