Voting from overseas: Does it impact your tax status in the US?
November 3rd is the presidential election day scheduled in the United States of America. Thus a plethora of doubts must have been raised due to the election scheduled. Americans living overseas often have questions about whether they can vote, how is the procedure for it and if they should really do it. Apart from this, one of the most frequently asked questions by the U.S. citizens who live abroad is: “Will voting from overseas in federal elections affect my respective U.S. tax status?”
Well, to answer this in a very short and crisp manner, the answer is “no”. Most people have a misconception wherein their tax status might get affected. However, that’s not the scenario. If you only vote for federal offices, the mere act of voting will have absolutely no impact on your liability to pay state income tax or any other tax.
As per the policies and instructions by the U.S. Department of State, Americans that are overseas can vote by absentee ballot. Also voting for candidates for the positions of federal offices will not affect a voter’s federal or state tax liability. However, it is always preferred to double check via the best tax consultant in Toronto.
Federal elections that are conducted include the elections for president as well as the vice president and the members of the Congress. What most people don’t realize is that the right of a U.S. citizen to vote is a constitutional right. This right is not contingent or dependent on having filed or having paid U.S. income taxes. Therefore, voting for federal offices will not create any sort of additional federal or state income tax liability on the U.S. expat. You can always consult an International Tax consultancy service in Toronto for this.
What about voting for state offices?
Some states in the United States of America consider voting in state or local elections as an indication that you remain a resident of the state although you may be overseas. Thereby, due to this, you may be subject to state taxes.
Therefore, if you vote for state or local offices, under state law, the act of voting could result in higher state income tax. This is due to how certain states tax former residents who maintain state domicile.
States like New York and California have safe harbor rules allowing certain individuals domiciled in the state, but temporarily absent, to avoid being taxed as state residents by spending a limited number of days per year in the relevant state. Understanding these rules with the help of tax consultant in New Orleans is beneficial.
