state tax for capital gains and dividends

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ketanco
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state tax for capital gains and dividends

Post by ketanco » Sun Apr 01, 2018 12:15 am

The internet company through which i am registered is located in TX, for stock trading online, and they sent me a 1099 DIV and 1099 B for the capital gains and dividends i had for 2017. I have no relation to TX otherwise. Do I need to make a non resident return to TX for this? I already show this income in my federal tax return, and as for state return i am not living in the US now but I showed and paid its taxes in the foreign country i am residing right now.

mega317
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Re: state tax for capital gains and dividends

Post by mega317 » Sun Apr 01, 2018 1:06 am

Well Texas doesn't tax income so no. But also if I'm understanding your question correctly the location of your broker doesn't matter.

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JoMoney
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Re: state tax for capital gains and dividends

Post by JoMoney » Sun Apr 01, 2018 6:41 am

Are you a U.S. citizen? Even though you are not a resident in the U.S. currently, What state are you "tax domiciled" in ?
https://www.nolo.com/legal-encyclopedia ... icile.html
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

bberris
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Re: state tax for capital gains and dividends

Post by bberris » Sun Apr 01, 2018 7:19 am

You pay state income taxes on investments to the state you live in, if they tax that sort of income.

ketanco
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Re: state tax for capital gains and dividends

Post by ketanco » Sun Apr 01, 2018 12:32 pm

JoMoney wrote:
Sun Apr 01, 2018 6:41 am
Are you a U.S. citizen? Even though you are not a resident in the U.S. currently, What state are you "tax domiciled" in ?
https://www.nolo.com/legal-encyclopedia ... icile.html
Yes but i I have no connections left with any US state now, and in addition i can easily show that all my life is in a foreign country now, plus i pay taxes in te foreign country i m at now, as i m their resident. As far as i know these are enough to not have a tax domicile in any US state otherwise you would have to file resident to US state forever where you dont live anymore. And as per my question, i understand that i dont have to file taxes to TX for this, but just for info, if it wasn't TX but a state with income tax, would this be a different situation ?

bberris
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Re: state tax for capital gains and dividends

Post by bberris » Sun Apr 01, 2018 4:01 pm

Well, every state probably handles this differently. I think the default position the state would take is that you must file in the state you left. For your sake, I hope it is one of those states that don't tax income. But it is very easy to become a resident of a no-tax state if you truly don't want to come back: Sell all your property, sell your car, head to Texas and get a driver's license and register to vote. Check into a hotel one night and call it your address.

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samsoes
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Re: state tax for capital gains and dividends

Post by samsoes » Sun Apr 01, 2018 4:55 pm

ketanco wrote:
Sun Apr 01, 2018 12:32 pm
JoMoney wrote:
Sun Apr 01, 2018 6:41 am
Are you a U.S. citizen?
Yes but i I have no connections left with any US state now
In which state do you vote via absentee ballot?
"Happiness Is Not My Companion" - Gen. Gouverneur K. Warren. | (Avatar is the statue of Gen. Warren at Little Round Top @ Gettysburg National Military Park.)

ketanco
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Re: state tax for capital gains and dividends

Post by ketanco » Sun Apr 01, 2018 7:19 pm

samsoes wrote:
Sun Apr 01, 2018 4:55 pm
ketanco wrote:
Sun Apr 01, 2018 12:32 pm
JoMoney wrote:
Sun Apr 01, 2018 6:41 am
Are you a U.S. citizen?
Yes but i I have no connections left with any US state now
In which state do you vote via absentee ballot?
i never registered to vote. even if i did, would that alone be a reason to file resident tax return for a state while you live abroad?

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samsoes
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Re: state tax for capital gains and dividends

Post by samsoes » Sun Apr 01, 2018 7:21 pm

ketanco wrote:
Sun Apr 01, 2018 7:19 pm
samsoes wrote:
Sun Apr 01, 2018 4:55 pm
ketanco wrote:
Sun Apr 01, 2018 12:32 pm
JoMoney wrote:
Sun Apr 01, 2018 6:41 am
Are you a U.S. citizen?
Yes but i I have no connections left with any US state now
In which state do you vote via absentee ballot?
i never registered to vote. even if i did, would that alone be a reason to file resident tax return for a state while you live abroad?
One registers to vote in the state where s/he is domiciled. That's typically where the "home" state income tax is filed.
"Happiness Is Not My Companion" - Gen. Gouverneur K. Warren. | (Avatar is the statue of Gen. Warren at Little Round Top @ Gettysburg National Military Park.)

ketanco
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Re: state tax for capital gains and dividends

Post by ketanco » Sun Apr 01, 2018 7:23 pm

bberris wrote:
Sun Apr 01, 2018 4:01 pm
Well, every state probably handles this differently. I think the default position the state would take is that you must file in the state you left. For your sake, I hope it is one of those states that don't tax income. But it is very easy to become a resident of a no-tax state if you truly don't want to come back: Sell all your property, sell your car, head to Texas and get a driver's license and register to vote. Check into a hotel one night and call it your address.
why would i continue to file to the state that i left, if i have nothing left in there and completely live abroad?

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samsoes
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Re: state tax for capital gains and dividends

Post by samsoes » Sun Apr 01, 2018 7:36 pm

ketanco wrote:
Sun Apr 01, 2018 7:23 pm
bberris wrote:
Sun Apr 01, 2018 4:01 pm
Well, every state probably handles this differently. I think the default position the state would take is that you must file in the state you left. For your sake, I hope it is one of those states that don't tax income. But it is very easy to become a resident of a no-tax state if you truly don't want to come back: Sell all your property, sell your car, head to Texas and get a driver's license and register to vote. Check into a hotel one night and call it your address.
why would i continue to file to the state that i left, if i have nothing left in there and completely live abroad?
It depends on the laws of the state you left. Which state was that?
"Happiness Is Not My Companion" - Gen. Gouverneur K. Warren. | (Avatar is the statue of Gen. Warren at Little Round Top @ Gettysburg National Military Park.)

ketanco
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Re: state tax for capital gains and dividends

Post by ketanco » Sun Apr 01, 2018 7:42 pm

samsoes wrote:
Sun Apr 01, 2018 7:36 pm
ketanco wrote:
Sun Apr 01, 2018 7:23 pm
bberris wrote:
Sun Apr 01, 2018 4:01 pm
Well, every state probably handles this differently. I think the default position the state would take is that you must file in the state you left. For your sake, I hope it is one of those states that don't tax income. But it is very easy to become a resident of a no-tax state if you truly don't want to come back: Sell all your property, sell your car, head to Texas and get a driver's license and register to vote. Check into a hotel one night and call it your address.
why would i continue to file to the state that i left, if i have nothing left in there and completely live abroad?
It depends on the laws of the state you left. Which state was that?
NJ but i think it is irrevant. I dont see how this can be possible for any state though... can you give an example of a state law that requires this?

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JoMoney
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Re: state tax for capital gains and dividends

Post by JoMoney » Sun Apr 01, 2018 8:20 pm

Do you have a U.S. drivers license? Do you have family in NJ or other ties that might make it appear that NJ is the state you plan to return to whenever you return to the U.S. (regardless of how long you'll be away)?
Unless you made efforts to change your U.S. "home" to another state (wherever it is you'll return to when you return to the U.S.), then it sounds to me that you are tax domiciled in New Jersey (that being where you last lived).
If that is the case, you would still be required to file a NJ "non-resident" tax return, but the good news is you would only owe state taxes on any amounts sourced in NJ.
https://www.taxesforexpats.com/expat-ta ... idency.pdf
... Nonresidents. For nonresidents, New Jersey income
tax liability is based on the percentage of
their total income that comes from New Jersey.
The income section of the New Jersey nonresident
return has two columns—Column A, income
from everywhere and Column B, income
from New Jersey sources. In the first column,
report your income from all sources (both inside
and outside New Jersey) as if you were a resident,
and in the second column, list only income
that was derived from New Jersey sources.
In some states, citizens aren't required to file (or even pay) any state income taxes, Texas is one of the states that does not tax personal income nor require filing a state return, but if you haven't established Texas as your 'domicile' for tax purposes that may be irrelevant .
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

ketanco
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Re: state tax for capital gains and dividends

Post by ketanco » Sun Apr 01, 2018 8:36 pm

JoMoney wrote:
Sun Apr 01, 2018 8:20 pm
Do you have a U.S. drivers license? Do you have family in NJ or other ties that might make it appear that NJ is the state you plan to return to whenever you return to the U.S. (regardless of how long you'll be away)?
no and no. my NJ drivers license expired as I no longer live there and didnt renew. but I have foreign drivers license

Katietsu
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Re: state tax for capital gains and dividends

Post by Katietsu » Sun Apr 01, 2018 8:52 pm

It sounds like you have established a new Tax domicile overseas and would not need to file a state tax return. The exception is if you had income sourced in a state like rental property or oil royalties. Then you would pay taxes as a non resident on that source income only.

Seoulseeker
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Re: state tax for capital gains and dividends

Post by Seoulseeker » Mon Apr 02, 2018 2:28 am

The taxation depends on where you were a resident when the income was earned. You say you are a resident of a foreign country now. Were you also a registered foreign resident for all of last year? If for example you expatriated on Sept 30 (ie, had both moved abroad and received evidence of your foreign residence such as an alien registration card as of that date) then you would owe state tax in whatever state you were a resident up until Sept 30. Income from Oct 1 forward generally would not be subject to local state tax. Best Wishes

Nate79
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Re: state tax for capital gains and dividends

Post by Nate79 » Mon Apr 02, 2018 10:06 am

Is the address on file with the brokerage the overseas address you currently reside in? They mailed these tax forms to your foreign/current address?

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