I want to open a bank account and a CD in another state. How do I find out if I owe income tax to that state?

Also, at some point I will move out of the usa (I am a US citizen). Besides Fed income tax, which you have to pay no matter where you live in the world, will I have to pay state income tax on my bank accounts?

On your resident state, you must report your worldwide income.

I know of no state that taxes CD interest for out-of-state residents.

As MukatA said, you pay taxes on all world-wide income to the state in which you LIVE!

You may or may not owe income taxes to the state where you receive interest. Each state state calculates income differently. So if you receive 20K in interest income from state A, that will most likely require you pay interest to that state. If you earn $10 in interest from state A, it will not be taxable because it falls under the minimum of taxable income.

When you move out of the USA, you will need to pay taxes on your worlwide income to the federal and state taxing authorities where you last resided.


Greg Freyman, CPA
Www.TaxProFF.com

Mr. Freyman:

Look at the date of my last post. It is OVER two years old!