[jimdavis]

Hi, I am now a legal resident of a country overseas. This country doesn't have an income tax. I moved here from NJ where I was a resident, and will NOT return to NJ when I go back to USA. I do NOT own property in NJ as I was a renter there, but my stuff is in storage there. I still have a NJ drivers license and a professional license there, however there is no reason I could not apply for a professional license or store my belongings in another state instead. Do I need to pay NJ state income tax on my income overseas? I will of course pay NJ income tax on the income I earned in NJ prior to moving overseas. Thank you.

[AtlantaTaxExpert]

Jim:

If you have established residency in a foreign country, then you have effectively changed your residence FROM New Jersey. After you file the tax return for the income earned in NJ, that will be your LAST tax return required for the state of New Jersey.

I assume you are retaining your U.S. citizenship. If so, you STILL must file a U.S. tax return each year for as long as you retain your U.S. citizenship.

[Radu62s]

I am a US citizen living abroad in Europe and working for a New Jersey company which has no office in Europe.
What tax return I have to file for Federal Income tax and what are my NJ tax obligations?

[AtlantaTaxExpert]

You need to file Form 1040. If you are paying taxes to a European country, you can mitigate your U.S. federal tax obligation by claiming the Foreign Tax Credit (Form 1116) or the Foreign Earned Income Exclusion (Form 2555), or a combination of the two.

If you maintain a home in Jew Jersey, or intend to return there to live, you must pay NJ income tax on your world-wide income.