If I reside outside the US and working for the US GOV..do I have to still pay...

[Jamil M]

...state tax to the previous state? I will be residing 365 days of 2008 outside the US. I don't own a home in the US and I don't plan to return to the same state once I return to the states. So am I still obligated to pay taxes to the previous state of residence? I still pay federal (that's understud). Thanks.

[Randall Parker, MBA]

The nice thing about state taxes is that they can only claim what you earned while working in that state.

If all of your income was earned outside of the USA (and outside of that state), you are cool.

Take your foreign income exemptions (about $85,700) from the Federal Return, and the foreign tax credit, and you should be fine. I would not bother filing a state return, unless they will receive some kind of informational statement, such as a 1099 or W-2.

If anything, claim Nevada as your residence, as they have no state income tax.

Good luck!

BTW, I live in the Philippines, so I have some basis in my answer in addition to my professional qualifications, which you may note on my profile.

[LucaPacioli1492]

No but some aggressive states like New York might claim that you are still residing there, for at least the first part of 2008. This doesn't mean that they're right.