Living overseas and filing US taxes

Depending on NYS law, you owe taxes for their "time of residency" requirements. I don't know what that is, whether it is "over six months resident" or something else. I think most states have the "six month" time frame. To NYS, it doesn't make any difference where you moved to ... back to Kansas, up to Hong Kong, out to Hawaii, down to Australia.

For IRS purposes, there used to be a tax break for US residents abroad, but I believe that was rescinded in 2005 or thereabouts. You might want to contact an American tax specialist in your current country of residence to find out if you owe taxes there, in whichever country you are now calling home. I have no idea how laws vary from country to country, or the subset of how these apply to US citizens drawing income from US sources. It seems to me that is what you want to look at. Large US accounting firms with offices overseas probably sign corporate clients, but may be willing to give you a consultation and direct you to a reliable local tax preparer.

It seems California considers you a resident even if you live abroad or in another state, because you once lived in California. They're after the 9.3% or 10.3% state income tax on rich people, and there's no reason to think that New York is any more generous. See which talks about how to determine if you are a California resident, and the list includes things such as your drivers license state, where you are registered to vote, where you raise your family, etc.

Social security income is free from state taxes so it should not be a concern for New York state. It is partially taxable at the federal level (will be fully tax free if your only income is social security or your taxable and taxfree income is very low like under $25,000).

There still is a tax break. See form 2555 at . You get an exemption of $85,700, or twice that if married, but only on earned income (not interest, dividends, pensions, etc). On the remainder you pay US taxes, though it seems you have to use the higher tax rates to figure the amount. Also, you get a credit for tax paid to foreign governments that have a double taxation treaty with the US, and most do. The form for the foreign tax credit is 1116 at and it looks pretty complicated.