topic I live overseas but I am required to put a US state for residency in State tax filing

I live overseas but I am required to put a US state for residency

valemoto7 — Mon, 09 Mar 2026 05:25:16 GMT

I lived all of 2021 overseas so in my personal information in the "Resident state" field I selected "Foreign or U.S. Possession."

However, later on im being asked to select a state. I used to live in New York (until the beginning of 2020) so I have a NY current drivers license BUT I changed my mailing address to Texas (with some relatives) when I moved overseas so I could receive all my mail correspondence.

What do I do in this instance? I'm a bit confused as to why "Foreign or U.S. Possession" is even an option if I HAVE to select a state.

Can someone please advise as to what I can do in this situation. Thank you.

Re: I live overseas but I am required to put a US state for residency

SusanY1 — Mon, 21 Feb 2022 04:35:01 GMT

Can you tell us where in the program it is requiring you to select a state?

Re: I live overseas but I am required to put a US state for residency

valemoto7 — Mon, 21 Feb 2022 04:54:16 GMT

Thank you for the quick response! I get me message below:

“We noticed that you didn't enter the state where you live at the beginning of your federal return.

We recommend entering this information and completing your federal return before starting your state return. Finishing your federal return first helps ensure a complete and accurate state return.

If you already completed your federal return and would like to start your state return, select Choose State below.”

Apologies it lets me go through when I select "Skip State." However would this be the correct way to do my tax return given I live overseas? I just want to confirm that. Thank you!

Re: I live overseas but I am required to put a US state for residency

DMarkM1 — Mon, 21 Feb 2022 13:38:22 GMT

You will still have a resident state however there may not be a filing requirement. You have ties to NY with a NY driver's license however you have not been in NY or earned any NY income. Also it appears you have a mailing address and family in TX and those would be factors to TX being your resident state. TX does not have a state income tax so there would be no filing requirement there.

On your return I would indicate TX as your resident state. Your address can be overseas or the TX mailing address. You may at some point register to vote and get a driver's license in TX to further establish TX as your resident state in case it ever comes up.

This is standard practice among US ex-pats; establish residency in a state with no income tax, like TX.

Re: I live overseas but I am required to put a US state for residency

valemoto7 — Mon, 21 Feb 2022 17:48:45 GMT

Thank you very much this is very helpful!