U.S. Tax Filing for American Yacht Owners and Yacht Crew
You may leave the United States, but the United States never leaves you!
The title above is especially true when it comes to the IRS. If you are a U.S. citizen and just happen to be residing abroad, you will absolutely, positively owe American expat taxes on the income which you make worldwide.
If you fit the criteria of permanent residence abroad, you will not need to file a state income tax return for the state of previous residence. Determining factors for residence are voter registration, driver’s license, bank accounts, car license plates, whether you own or rent property in the United States, the receipt of any United States utility bills for that state and more.
The United States will come looking for you unless you eliminate or reduce all signs of residency inside the U.S. California is one of the more serious states when it comes to chasing overseas people that owe taxes. The entire issue of residency is a touchy subject and should be approached delicately and by well informed individuals.
Even if you’re not a resident of a U.S. state anymore but still receive income from a business or trade, or receive income from rentals, you’ll have to pay taxes. Dividends, stock sales and interest will not be subjected to tax unless you are living in the state. Should you permanently leave the state from which you are earning a pension, that pension is no longer taxable.
Speak to a U.S. licensed CPA based in Hong Kong who understands tax implications for U.S. Expats in Asia.