Question

DOD overseas Resident or Non-Resident?

Forum|Forum|4 years ago
April 14, 2022
1 reply
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My husband is a DOD employee stationed overseas. I am a civilian whose income overseas qualified for the Foreign earned income exemption. We previously were residents of RI, but we rented while living there. We have no physical home there and no income earned in RI, but possibly will be returning to the state in 3-4 years. We did not spend 1 day in the US in 2021. Do we need to file a RI income tax as a resident or a non-resident or even at all? I ran both scenarios through Turbotax and the resident version ignores the FEIE provided by the Federal govt on my income. In the resident version there doesn't seem to be any place where you can advise that the income (at least mine) was not earned in RI or that you weren't living in the state at all. We have rental properties in VA and file a non-resident return there. RI isn't even giving us a credit for the full tax being paid in VA for the rentals. I don't get how RI can assess tax on rental income from VA?? The rental income is included in the AGI and doesn't seem to have a credit for it in "reductions to AGI".

Not A Product Question

E

ErnieS0

It sounds like you are a nonresident of Rhode Island and should not file a Rhode Island return because you cut your ties with the state and have a closer connection with your current location than you do with Rhode Island.

Rhode Island defines a nonresident as any person not coming within the definition of a resident.

For purposes of the above definition, domicile is found to be a place an individual regards as his or her permanent home – the place to which he or she intends to return after a period of absence.

A domicile, once established, continues until a new fixed and permanent home is acquired.

No change of domicile results from moving to a new location if the intention is to remain only for a limited time even if it is for a relatively long duration.

For a married couple, normally both individuals have the same domicile. Any person asserting a change in domicile must show:

(1) an intent to abandon the former domicile,

(2) an intent to acquire a new domicile and

(3) actual physical presence in a new domicile.

2020 NR Instructions

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