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Hello and thank you for using Just Answer.The state that your son would be required to file and pay tax would be dependent on the state that he was a resident of prior to working abroad. Just because he was not physically in the state may not mena that he stopped being a resident for tax purposes. You listed Maryland in your question, if Maryland was his regular resident state then he will need to file a Maryland return for 2011. Maryland does offer a deduction for this since he will not be allowed to use the Foreign Earned Income Exclusion on his federal. US employees are not granted the Foreign Income Exclusion on wages paid by the US government.
The above should have read "does not offer the deduction...."
Your son would retain his maryland residency for 2011.
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Prior to leaving for Afghanistan in January, 2011 he lived and was training in two other states for July - December 2010. And prior to that, he lived for two years in Washington, DC where he went to school. (1) Where is his residence?
Also, (2) since his income was earned in Afghanistan, is this not income exempt from state income taxes?
Sorry for the delay in responding; Holiday travels.
My son was in Missouri for 6 months in 2010 prior to leaving for Afghanistan. Prior to that, he lived in Washington, D.C. for two while he was in school.
I checked the Maryland website and found the following:
If you are a nonresident of Maryland, you are required to file Form 505 (Maryland Nonresident Income Tax Return) and Form 505NR (Maryland Nonresident Income Tax Calculation) if you have income derived from:
You are not required to file as a nonresident if:
Since my son did not live (reside) in Maryland in 2011 and had no income from a Maryland source, does he have to file a return. If your answer is yes, does he file a non-resident return?
More information from the Maryland instructions book:
You are a resident if your permanent home is in Maryland (the law refers to this as your domicile) or your home is outside Maryland but you maintained a place of abode (that is a place
to live) in Maryland for more than six (6) months
(183 days) of the tax year and you are physically
present in Maryland for 183 days or more (you
are a statutory
You are a part-year resident if you established
or abandoned legal residence during the tax year.
If you are an active duty military member, see
If your son was in Missouri prior to leaving then that would be his state. I spoke of Maryland because that was the state that was listed with your question. Based on your info I would said that NO, he is not required to file a Maryland return at all.For Missouri your son can be a nonresident and not required to file there if he meets their requirements as such.
Resident - An individual who is domiciled in Missouri, unless the individual:
If he was living in MO when he left and did not retain ties to Mo then he is not a resident of that state for 2011.
Here is a link to the MO quick diagram (flowchart) that helps determine residency:http://dor.mo.gov/pdf/nonres_flowchart.pdf
I really important factor would be what state did your son list with the government when he accepted the position upon leaving. What driver's license did he retain? Is he registered to vote in a state? Did he retain ties to any specific state as far as home or property? That would be the state that would need closer inspection.
Thank you for your quick response.
My son listed my address in Maryland with the government when he accepted the position, he is registered to vote in MD, has a MD driver's license but has no home or property in MD. Assuming based on this that he has to file a MD return, can it be a non-resident return?
Thank you and Happy New Year.