MA State Tax whilst living abroard

[Amokachi]

Hi

I have recently returned to MA after living in the UK for 7 years. Throughout this period I completed Federal tax returns on an annual basis but not State ones.

I was working in the UK for a UK based company and earned no MA sourced income whatsoever in this period, am I liable to pay any tax for the period that I was away?

We are receiving conflicting advice from different parties. Should I complete my back returns for this period and if so how should I complete the return in regards to money earned whilst away?

Thanks!

 

[tranquility]

http://www.mass.gov/dor/individuals/filing-and-payment-information/guide-to-personal-income-tax/residency-status.html#FullYear

 

[LdiJ]

Hi

I have recently returned to MA after living in the UK for 7 years. Throughout this period I completed Federal tax returns on an annual basis but not State ones.

I was working in the UK for a UK based company and earned no MA sourced income whatsoever in this period, am I liable to pay any tax for the period that I was away?

We are receiving conflicting advice from different parties. Should I complete my back returns for this period and if so how should I complete the return in regards to money earned whilst away?

Thanks!

You were not living in MA during those 7 years, you had no MA source income, so why should you pay MA tax? Who is telling you that you need to file returns for those years? What is their specific rationale for that?

 

[davew128]

You were not living in MA during those 7 years, you had no MA source income, so why should you pay MA tax? Who is telling you that you need to file returns for those years? What is their specific rationale for that?

Not all the facts have been presented here, but if the OP owned a home and never abandoned it, they would be considered domiciled in MA unless they made affirmative steps to abandon that domicile or establish domicile elsewhere. Have dealt with DOR on a residency audit before.

 

[LdiJ]

Not all the facts have been presented here, but if the OP owned a home and never abandoned it, they would be considered domiciled in MA unless they made affirmative steps to abandon that domicile or establish domicile elsewhere. Have dealt with DOR on a residency audit before.

The same issues arise in my state. Particularly if they are receiving a homestead credit on their property taxes. However, that is why I asked the OP who it was that was telling them that, and what their rationale was.

 

[Amokachi]

Thanks for all the replies, sorry for not providing the full detail.

I did not own or maintain any property in MA whilst I was in the UK and had zero MA source income. I did however maintain a Bank Account and Credit Card at my parents address (also in MA) and made no effort to de-register to vote.

A tax adviser we have employed has suggested that I fill out the back taxes, as he suggests that due to the fact I have returned to MA, I was never really domiciled elsewhere. This was not the case in my mind! When I moved to the UK, whilst I was never 100% sure I would not move back one day, I considered the move at that time to be permanent, I took employment with a UK company, I was married there, paid the equivalent of property taxes there (council tax), gained citizenship and had a child there.

The tax adviser has provided little additional detail to us (probably wants paying, which is fair enough!) beyond the fact that he believes I was still domiciled in MA and that I should fill out the back returns. He has not suggested what we may or may not be liable for.

 

[davew128]

I think its safe to say you abandoned your MA domicile when you moved.

 

[Amokachi]

I think its safe to say you abandoned your MA domicile when you moved.

Thanks for the quick reply Dave, I assume your advice would be for me to not fill out any returns for the period then

 

[LdiJ]

Thanks for the quick reply Dave, I assume your advice would be for me to not fill out any returns for the period then

I agree with Dave and also concur that you should not fill out any MA returns for the period in question. I cannot imagine what the tax advisor you spoke to was thinking. Unless somehow they think that because you were living abroad that it did not count as "domiciled elsewhere". However, he is definitely wrong.