Tax Tips for U.S. Americans Abroad
Do U.S. expats need to file Connecticut state taxes? Possibly. However, one thing for sure is that all US Citizens and Greencard Holders are required to report their worldwide income to the IRS regardless of where they live and work (just see this post to learn more about that).
If you are no longer domiciled (meaning, you don’t consider yourself to have a permanent home in the states that you will return to if your job contract expires) read on. If you still are domiciled in Connecticut, you will most likely need to file a state return every year!
Here’s a simple guide to determine whether U.S. expats need to file Connecticut state taxes:
Did you live in Connecticut for any part of the year?
- Yes: You will need to file as Part-Year Resident, skip down below
- No: Continue on
Did you earn any Connecticut sourced income during the year?
- Yes: File as Non-Resident, skip down below
- No: You don’t need to file
A Connecticut resident is subject to tax on income including from sources within Connecticut and outside of Connecticut. Connecticut residents also must file the CT-1040 form if they meet the Gross Income Test, and even if they do not have a Connecticut tax liability.
Income earned by an individual while they are not a resident of Connecticut or Part-Year Resident will be taxed in Connecticut only if it is considered Connecticut source income.
What is Connecticut Sourced Income?
- Money/income earned while you worked physically in Connecticut State (i.e. any income including normal salary from your non-US employer) while on a business trip to Connecticut.
- Or income earned from physical property located in Connecticut (i.e. rental income from your old Connecticut home).
Other Connecticut Income Sources are listed here.
Connecticut Specific Filing Details
You will need to file a Connecticut State Tax Return if you file a federal Form 1040 and your gross income for the 2018 taxable year exceeds the Gross Income Test below:
• $12,000 and you are married filing separately;
• $15,000 and you are filing single;
• $19,000 and you are filing head of household; or
• $24,000 and you are married filing jointly or qualifying widow(er) with dependent child.
Plus, even if you were a nonresident or part-year resident of Connecticut in 2018 and any of the following is true for the 2018 taxable year, you still must file a Connecticut State Tax Return if you had Connecticut income tax withheld; and if you were a nonresident with Connecticut-sourced income who meets the Gross Income Test or had a federal alternative minimum tax liability.
Expat Tax Benefits
Which expat tax benefits does Connecticut State allow?
- Moving Expenses: No
- Foreign Earned Income Exclusion: Yes
- Foreign Tax Credit: No
A lot to process?
The information we shared on whether U.S. expats need to file Connecticut state taxes is a lot. So don’t panic if you can’t understand it all! We at MyExpatTaxes can also help out with your state tax filings in an affordable way. Click here to sign up for our app, and get ready for a fun ride!