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New Jersey / US State Income Tax

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  1. #1

    New Jersey / US State Income Tax

    I am an American planning to live in HK for two years or so for my job.

    Before moving to HK, I lived in NJ where the state income tax rate is a little over 6%.

    Has anyone had any success avoiding paying state income tax while living abroad.

    I have one of the big four contracted to do my US and HK taxes and they say I have no choice but to pay but having spoken to other Americans locally who are from California and New York they have successfully avoided paying state income tax while living abroad by claiming they have no plans to return to living in that state upon/if they come home.

    We don't own a home or have any other ties to NJ aside from having a local po box set up and we've kept our local cell phone numbers active.

    What have others done to not pay or did you all just bite the bullet as 6% is alot of money!?

    Last edited by shri; 27-05-2017 at 12:32 PM. Reason: fixed some formatting

  2. #2

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    @SirNotAppearing might be able to help with some info.


  3. #3

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    Quote Originally Posted by Tripsearching:
    I am an American planning to live in HK for two years or so for my job.

    Before moving to HK, I lived in NJ where the state income tax rate is a little over 6%.

    Has anyone had any success avoiding paying state income tax while living abroad.

    I have one of the big four contracted to do my US and HK taxes and they say I have no choice but to pay but having spoken to other Americans locally who are from California and New York they have successfully avoided paying state income tax while living abroad by claiming they have no plans to return to living in that state upon/if they come home.

    We don't own a home or have any other ties to NJ aside from having a local po box set up and we've kept our local cell phone numbers active.

    What have others done to not pay or did you all just bite the bullet as 6% is alot of money!?
    don't do that

  4. #4

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    Get a driver license in a tax free state. Florida. Delaware etc.


  5. #5
    Quote Originally Posted by Morrison:
    don't do that
    I'm not trying to do anything illegal and if I owe I'll pay. But I'm genuinely unsure where I will move to when I return to the US as I have no connection to NJ. I have no choice but to pay federal income tax but if others have successfully avoided state income tax, I'd like to hear about it. I have been told accountants are lazy so their standard answer is to pay state taxes but you can fight it and be successful. No matter what I'd obviously file all legal paperwork honestly bc I definitely plan to return to US in a few yeaes.

  6. #6

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    You basically need to cut ties with that state, it is all very subjective.
    Sometimes it's enough to have a key to a room at your siter's place or a bank account back home
    to still be liable to income tax.


  7. #7

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    If your full time bona fide residence is outside of the state you are not subject to state income tax. If it takes saying you're not coming back, then say that. You might not.

    I've been living outside of the US 10 years and not paid a cent in state income tax in that time, nor has any financial advisor said I should. I file my taxes with my overseas address. I pay federal only.


  8. #8

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    Pay the state tax if your intention is to return to NJ.


  9. #9

    Since you have a PO box set up and a local phone number that might be enough to say you still have a physical presence there. You might want to write to NJ government and ask them.

    Morrison likes this.

  10. #10

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    Being from NJ and here for less than a year, I had the same questions. NJ is the one of the toughest states to break residency, unlike our neighboring states. You practically need to sever all ties to NJ and never have the intention to come back to NJ after your stint is done. Even if you come back to NJ years later, they can still say you need to pay state taxes. Tried everything. It's like the roach commercial, you can get in but you can't get out.

    shri likes this.

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