state tax on overseas income

[ozarkmidwife]

What is the name of your state (only U.S. law)? Arkansas
My son lives and works in the Netherlands. His income is less than the exclusion amount ($87,000.) for federal taxes. He still has an Arkansas drivers license and votes absentee from Arkansas. Does he need to file an Arkansas tax return and is any of his income subject to Arkansas income tax?
ThanksWhat is the name of your state (only U.S. law)?

 

[LdiJ]

What is the name of your state (only U.S. law)? Arkansas
My son lives and works in the Netherlands. His income is less than the exclusion amount ($87,000.) for federal taxes. He still has an Arkansas drivers license and votes absentee from Arkansas. Does he need to file an Arkansas tax return and is any of his income subject to Arkansas income tax?
ThanksWhat is the name of your state (only U.S. law)?

No, his income should not be subject to Arkansas tax nor should he have to file an Arkansas tax return. However, the fact that he still holds an Arkansas driver's license and votes as an Arkansas resident is problematic. It may cause Arkansas to feel that he needs to file an Arkansas tax return and pay Arkansas tax. Its something that can be straighten out (I have had to do that for expat clients) but it can be a trial to straighten out.

As long as his income isn't US based however, he probably won't run into any problems.