Page 46 - Foreign Service Journal - February 2013

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“place of abode” in the state,
have a permanent “place of
abode” outside the state, and
not be physically present for
more than 30 days during the
tax year. California allows up
to 45 days in the state during
a tax year.
All these 10 states require
the fling of non-resident
returns for all income earned
from in-state sources.
Foreign Service employ-
ees should also keep in mind
that states could challenge
the status of government
housing in the future.
The following list gives a
state-by-state state overview
of the latest information
available on tax liability, with
addresses provided to get
further information or tax
forms. Tax rates are provided
where possible. For further
information, please contact
AFSA’s Labor Management
Ofce or the individual state
tax authorities. As always,
members are advised to
double-check with their
state’s tax authorities.
To assist you in connecting
with your state tax ofce, we
provide the Web site address
for each in the state-by-state
guide, and an e-mail address
or link where available. Some
states do not ofer e-mail
customer service. The Fed-
eration of Tax Administrators’
Web site,
also provides much useful
information on individual
state income taxes.
Individuals domiciled in
Alabama are considered
residents and are subject
to tax on their entire
income regardless of their
physical presence in the
state. Alabama’s individual
income tax rates range
from 2 percent on taxable
income over $500 for
single taxpayers ($1,000
for married fling jointly),
to 5 percent over $3,000
for single taxpayers
($6,000 for married fling
jointly.) Write: Alabama
Department of Revenue, 50
N. Ripley,Montgomery AL
Phone: (334) 242-1512.
E-mail: Link through the
Web site, “About Us” then
“Contacts,” then “Income
Web site:
Alaska does not tax individual
income or intangible or
personal property. It has
no state sales and use,
franchise or fduciary tax.
Some municipalities levy
sales, property and use taxes.
Write: State Ofce Building,
333 West Willoughby Ave.,
11th Floor, P.O. Box 110420,
Juneau AK 99811-0420.
Phone: (907) 465-2320.
Web site:
Individuals domiciled in
Arizona are considered
residents and are taxed on
any income that is included
in the Federal Adjusted
Gross Income, regardless of
their physical presence in
the state. Arizona’s tax rate
ranges in fve brackets from a
minimum of 2.59 percent to
a maximum of 4.54 per-
cent of taxable income over
$300,000 for married fling
jointly or $150,000 for single
flers. Write: Arizona Depart-
ment of Revenue, Taxpayer
Information & Assistance,
P.O. Box 29086, Phoenix AZ
Phone: (602) 255-3381.
E-mail: For general questions:
Web site:
Individuals domiciled in
Arkansas are considered res-
idents and are taxed on their
entire income regardless of
their physical presence in the
state. The Arkansas tax rate
ranges in six brackets from
a minimum of 1 percent to a
maximum of 7 percent of net
taxable income over $33,199.
Write: Department of
Finance and Administration,
Income Tax Section, P.O. Box
3628, Little Rock AR 72203-
Phone: (501) 682-1100.
E-mail: Individual.Income@
Web site:
Foreign Service employees
domiciled in California must
establish non-residency to
avoid liability for California
taxes (see FTB Publication
1031). However, a “safe har-
bor” provision allows anyone
who is domiciled in state
but is out of the state on an
employment-related contract
for at least 546 consecu-
tive days to be considered a
non-resident. This applies to
most FS employees and their
spouses, but members domi-
ciled in California are advised
to study FTB Publication
1031 for exceptions and
exemptions. The California
tax rate ranges in six brack-
ets from 1 percent of taxable
income to a maximum of
$4,309.66 plus 9.3 percent
of the excess over $97,844
for married fling jointly or
over $48,942 for singles.
Non-resident domiciliaries
are advised to fle on Form
Write: Personal Income
Taxes, Franchise Tax Board,
P.O. Box 1468, Sacramento
CA 95812-1468.
Phone: toll-free 1 (800) 852-
5711 (inside the U.S.); (916)