The Foreign Service Journal, January-February 2020

THE FOREIGN SERVICE JOURNAL | JANUARY-FEBRUARY 2020 79 drops to 7.7 for tax years 2020 and 2021. There is no inheri- tance tax. Applicable taxes apply to part-year residents. Write: Taxpayer Services Division, P.O. Box 637, Concord NH 03302-0637. Phone: (603) 230-5000 Website: www.revenue.nh.gov NEW JERSEY A New Jersey domiciliary is considered a nonresident for New Jersey tax purposes if the individual has no perma- nent residence in New Jersey, has a permanent residence elsewhere and is not physically in the state for more than 30 days during the tax year. Filing a return is not required (unless the nonresident has New Jersey–source income), but it is recommended to preserve domicile status. Filing is required on Form 1040-NR for revenue derived from in-state sources. Tax liability is calculated as a variable lump sum plus a percentage from a minimum of 1.4 percent of taxable gross income up to $20,000, in three steps to 6.37 percent between $75,000 and $500,000, and a maximum of 8.97 percent on taxable gross income over $500,000 for both single and joint filers. There is also a top rate of 10.75 percent for income over $5,000,000. Write: New Jersey Division of Taxation, Technical Services Branch, P.O. Box 281, Trenton NJ 08695-0281. Phone: (609) 292-6400 Website: www.state.nj.us/treasury/taxation Email: Link through the website’s Contact Us tab. NEW MEXICO Individuals domiciled in New Mexico are considered residents and are subject to tax on their entire income, regardless of their physical presence in the state. The basis for New Mexi- co’s calculation is the Federal Adjusted Gross Income figure. Rates rise in four steps from a minimum of 1.7 percent to a maximum of 4.9 percent on New Mexico taxable income over $16,000 for single filers and $24,000 for married filing jointly. Write: New Mexico Taxation and Revenue Department, 1100 South St. Francis Dr., Santa Fe NM 87504. Phone: (505) 827-0700 Website: www.tax.newmexico.gov Email: Link through the website’s Email Us tab. NEW YORK There is no tax liability for out-of-state income if you have no permanent residence in New York, have a permanent resi- dence elsewhere and are not present in the state more than 30 days during the tax year—or you were in a foreign country for at least 450 days during any period of 548 consecutive days, and you, your spouse and minor children spent 90 days or less in New York State during this 548-day period. Filing a return is not required, but it is recommended to preserve domicile status. The tax rate for 2019 rises in six steps from a minimum of 4.5 percent to 6.21 percent of taxable income over $21,400 for single filers and $43,000 for married filing jointly; 6.49 percent on taxable income over $80,650 for single filers and $161,550 for joint filers; 6.85 percent on taxable income over $215,400 for single filers or $323,200 for joint filers; and 8.82 percent over $1,077,550 for single filers and over $2,155,350 for joint filers. In New York City, the maximum rate is 3.876 percent over $90,000 for joint filers and over $50,000 for single filers. Filing is required on Form IT-203 for revenue derived from New York sources. Foreign Service employees assigned to USUN for a normal tour of duty are considered residents in New York state for tax purposes. See TSB-M-09(2)I of Jan. 16, 2009, at http://www. tax.ny.gov/pdf/memos/income/m09_2i.pdf. Write: New York State Department of Taxation and Finance, Personal Income Tax Information, W.A. Harriman Campus, Albany NY 12227. Phone: (518) 457-5181 Website: www.tax.ny.gov Email: Link through the website’s Answer Center tab. NORTH CAROLINA Individuals domiciled in North Carolina are considered resi- dents and are subject to tax on their entire income, regardless of their physical presence in the state. North Carolina’s flat tax rate is 5.25 percent for 2019. Residents must also report and pay a “use tax” on purchases made outside the state for use in North Carolina. Write: North Carolina Department of Revenue, P.O. Box 25000, Raleigh NC 27640-0640. Phone: (877) 252-3052 or (919) 707-0880 Website: www.dornc.com NORTH DAKOTA Individuals domiciled in North Dakota and serving outside the state are considered residents and are subject to tax on their entire income. For the 2019 tax year, the tax rate ranges in four steps from 1.1 percent on North Dakota taxable income up to $39,450 for singles and $65,900 for joint filers, to a maximum of 2.9 percent on taxable income over $433,200 for singles and joint filers. Write: Office of State Tax Commissioner, State Capitol, 600 E. Boulevard Ave., Dept. 127, Bismarck ND 58505-0599. Phone: (701) 328-1247 Website: www.nd.gov/tax Email: individualtax@nd.gov