21 Mar I moved overseas. How do I tell N.J. I don’t owe state taxes?

Q. As of Dec. 31, 2022 I no longer reside in New Jersey. I don’t own a home, car or apartment or any property in New Jersey except a bank account, which I access remotely. I purchased a home and car and obtained a driver’s license, passport and property overseas, where I now reside. How do I prove to the New Jersey Division of Taxation that I do not need to pay New Jersey taxes from my U.S.A.-derived income?
— Perplexed

A. Let’s look at what the state can and can’t do.

New Jersey has the authority to tax non-residents on earned income earned within the borders of the state.

This means if you live in New York but work in New Jersey, you must pay a tax on that income to New Jersey, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown.

Additionally, if you own an out-of-state business that does business in New Jersey, you must pay a tax to New Jersey on that New Jersey source income, he said.

And if you are a partner in a partnership that does business throughout the country, you must file a nonresident tax return in every state your partnership does business, he said.

You said your only connection to New Jersey is a bank account in New Jersey.

New Jersey only has the right to tax interest income from accounts owned by residents of New Jersey, he said.

“When you file your 2022 New Jersey income tax return you should indicate on the top of page #2 the dates you were a New Jersey resident,” Kiely said. “You state as of Dec. 31, you no longer reside in New Jersey. So, your last day of residence would be prior to Dec. 31. This way New Jersey would no longer expect to see a tax return from you.”

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This story was originally published on March 21, 2023.

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