[0xy]

>Most states will want state income tax, so establish residence in a state with no income tax before going nomading.

Is this true? I thought that was only the case if they could prove you are an active resident. Of course, if you maintain a mailing address or residence in California/NY then you better believe they'll make sure you pay. If you cut ties completely, they don't have grounds to come after you.

[Ancapistani]

I moved from Virginia to Arkansas a few years ago, with my move-in date as January 1 to simplify taxes. After filing my previous year’s taxes (both VA and federal), the state of Arkansas sent me a letter demanding that I pay an estimated AR tax for the previous year because I had filed my federal taxes from an Arkansas address, but had not filed AR taxes.

I ended up having to go to court over it, twice so far. The first time was a “tax court”, and they deferred the judgement until I could obtain acceptable proof that I had held a driver’s license in another state for that year. The license itself wasn’t enough. The second time was after the judgement was issued anyways, and I had to file for it to be vacated.

[beagle3]

If you maintain a mailing address in a state, it will be on you to prove you don’t live there (and expect to have to do it on a yearly basis).

If you have an address outside the US, it is a good idea to tell the IRS to mail you at that address, the states seem to be content with that as evidence that you live out of state.

[gregjor]

Until you renounce US citizenship I would advise keeping a US address in a no income tax state, and a US bank account. Don’t tell the IRS or your bank that you moved out of the country. You don’t have to prove where you live or don’t live, just file the forms, pay the taxes, they don’t care. No one comes to the house looking for you unless you have done something criminal.

If you don’t have family or friends that will let you use their address you can use a mail receiving service (I used Traveling Mailbox for years). An attorney will usually let you use their address for a nominal fee. There’s actually a pretty big selection of services geared to expats and constant travelers, like people who live in RVs. Do some research, it’s not a big deal.

[beagle3]

I am not a US citizen, but I do know one who lives outside the US, and for several years, had to prove to Maryland that they are not a resident -- each year anew -- until they gave up and listed their non-US address with the IRS, which made everything simple.

Indeed, Maryland is not a no-income-tax state; However, tax issues are not the only thing one should care about, and I wouldn't just move to a state "on paper" without a good knowledge of what that might legally require me to do.

Do no-personal-income tax states never require that you file anything? Whether it is tax related, or not?

[toastal]

One option: Schwab offers international accounts that can help once you lose your address and can no longer open any US accounts. You can't use ACH or their roboadvisors, however they do pay ATM fees internationally.

[gregjor]

I use Schwab and recommend them. Open an account before leaving the US. You don’t need an international account, use a US address. If Schwab ever asks if you live overseas tell them no, you just travel a lot. They asked me once in six years, accepted my answer. They refund ATM fees on the regular investor checking account too.

[gregjor]

Get a driver’s license and an address in a state with no income tax: Washington, Nevada, Texas, Florida, etc. It’s not hard to do but you need to plan a little bit if you want to move overseas long enough that the FEIE will kick in.

Some states hold on to former residents harder than others: California and Virginia are notorious for trying to continue taxing people who leave. How you deal with this will depend on individual circumstances. Get professional tax advice if you expect problems with state tax authorities.

[brobinson]

California actually has a guide for this: https://www.ftb.ca.gov/forms/2019/2019-1031-publication.pdf