[SK4650]

If I am living overseas, what is the benefit of filing a NJ state income tax as a "non-resident"? Do I file a state tax return and get all the taxes deducted throughout the year back or can I claim exempt and not pay any state tax at all? Thanks for any help.

[AtlantaTaxExpert]

I assume you are filing a NJ return because you worked there and had income taxes withheld.

If so, then you were NOT a non-resident, because you resided in the state while working.

Non-resident status are for people who live in neighboring states but work in NJ, or who have property or investments in NJ which generate income.

[SK4650]

Thanks for the help. I am actually posted overseas and maintain no residence in the state of NJ. I have not been in the state for more than 30 days this past year, but I do have property in the state. When I did some research that indicated I qualify and can file a non-resident NJ tax return, do you know if I can claim exempt from having to pay state income tax each payperiod?

[AtlantaTaxExpert]

Generally, unless you plan to live overseas permanently, the state you left will consider you a resident of their state until you establish residency in another state. An overseas country does not count.

Bottom Line: You are considered a NJ state resident while you are posted overseas unless you become a resident of the foreign country, which is done by paying that country's taxes.