When Americans move abroad, state taxes are often the first thing they mentally discard. Federal taxes, sure, those linger. But state returns? Those feel tied to a place you no longer live, a chapter that’s clearly closed.
And sometimes, that’s true.
But if you talk to enough long-term expats, you’ll notice something interesting. A subset of them still files state tax returns. Not by accident. Not because they’re confused. But because, in their situation, it makes sense.
That’s what this article is about. Not who must file. But why some people still do.
Filing doesn’t always mean paying—sometimes it means closing the loop
For many expats, the word filing immediately translates to owing. A bill. A mistake. Something to avoid.
In reality, filing and paying are separate questions. Some expats file state returns even when no tax is due, simply to document their position. Think of it as leaving a paper trail that says, “Here’s where I stand.”
This can be especially appealing for people who like things wrapped up cleanly. Filing becomes a way to formally close the loop, rather than leaving silence open to interpretation later.
It’s not about generosity. It’s about clarity.
Some expats want consistency between federal and state filings
The Federal and state tax systems aren’t as isolated as they appear on the surface.
States often reference federal returns for context. Not to automatically assess tax, but to understand income patterns, filing history, and residency narratives. When an expat files federally year after year but remains silent at the state level, that gap can feel… unfinished.
For some people, filing a state return, even a simple one, helps align the story across systems. Everything matches. Nothing contradicts. The filings speak the same language.
It’s less about compliance pressure and more about coherence.
Ongoing ties don’t always disappear when you move abroad
Moving overseas doesn’t always sever every connection to a former state. Sometimes ties linger quietly.
A home that’s kept instead of sold. A driver’s license that never quite expired. Mail that still goes to a family address because it’s convenient. None of these necessarily means someone is a state resident. But they can complicate the picture.
In these cases, filing a state return can feel like the conservative choice. Not because the expat believes they owe tax, but because the situation isn’t perfectly clean.
Life rarely is.
Filing can protect against retroactive questions later
One reason some expats continue filing state returns is surprisingly simple. They don’t want to explain gaps years down the line.
States don’t always treat non-filing as a clear signal that nothing was owed. Sometimes it’s read as missing information. And if questions come up later, often triggered by unrelated events, those silent years suddenly matter.
Filing creates a record. A timeline. Evidence of intent.
For expats who value predictability, that record can be worth more than the time it takes to file.
Experienced expats tend to prioritize clarity over shortcuts
New expats often approach state taxes cautiously, sometimes by avoiding them altogether. That’s understandable. The rules feel opaque, and no one wants to overcomplicate an already busy transition.
Over time, though, perspectives shift.
Experienced expats tend to focus less on doing the minimum and more on doing what keeps things simple in the long run. For some, that means formally breaking state residency and never filing again. For others, it means continuing to file in a limited way.
The common thread isn’t obligation. It’s intention.
Choosing clarity across borders
State tax decisions aren’t one-size-fits-all, especially for Americans living abroad. Two people can leave the same state on the same day and reasonably make different choices afterward.
Expat US Tax works with expats across that spectrum, helping them understand when continued state filing makes sense and when it doesn’t. The goal isn’t to file more than necessary. It’s to file with purpose, clarity, and confidence.
Sometimes, the smartest move isn’t avoiding state taxes altogether. It’s understanding exactly where you stand, and choosing accordingly.
Lynn Martelli is an editor at Readability. She received her MFA in Creative Writing from Antioch University and has worked as an editor for over 10 years. Lynn has edited a wide variety of books, including fiction, non-fiction, memoirs, and more. In her free time, Lynn enjoys reading, writing, and spending time with her family and friends.
