The Foreign Service Journal, January-February 2021

THE FOREIGN SERVICE JOURNAL | JANUARY-FEBRUARY 2021 71 ARKANSAS Individuals domiciled in Arkansas are considered residents and are taxed on their entire income regardless of their physi- cal presence in the state. The Arkansas tax rate ranges in six brackets from a minimum of 2.0 percent to a maximum of 6.6 percent of net taxable income over $79,300. Write: Department of Finance and Administration, Income Tax Section, P.O. Box 3628, Little Rock AR 72203-3628. Phone: (501) 682-1100 Website: www.arkansas.gov/dfa Email: individual.income@dfa.arkansas.gov CALIFORNIA Foreign Service employees domiciled in California must establish nonresidency to avoid liability for California taxes (see Franchise Tax Board Publication 1031). However, a “safe harbor” provision allows anyone who is domiciled in state but is out of the state on an employment-related contract for at least 546 consecutive days to be considered a nonresi- dent. This applies to most FS employees and their spouses, but members domiciled in California are advised to study FTB Publication 1031 for exceptions and exemptions. The California tax rate for 2020 ranges in eight brackets from 1 percent of taxable income under $8,809 for singles and $17,618 for joint filers, to a maximum of 12.3 percent on taxable income over $590,742 for singles and $1,181,484 for joint filers. Nonresident domiciliaries are advised to file on Form 540NR. Write: Personal Income Taxes, Franchise Tax Board, P.O. Box 942840, Sacramento CA 94240-0040. Phone: (800) 852-5711 (inside the U.S.); (916) 845-6500 (outside the U.S.) Website: www.ftb.ca.gov Email: Link through the website’s Contact Us tab. COLORADO Individuals domiciled in Colorado are considered residents and are subject to tax on their entire income regardless of their physical presence in the state. Colorado’s tax rate is a flat 4.63 percent of federal taxable income, plus or minus allowable modifications. Write: Department of Revenue, Taxpayer Service Division, P.O. Box 17087 Denver CO 80217-0087. Phone: (303) 238-7378 Website: Tax.Colorado.gov Email: DOR_TaxpayerService@state.co.us CONNECTICUT Connecticut domiciliaries may qualify for nonresident tax treatment under either of two exceptions as follows: Group A—the domiciliary 1) did not maintain a permanent place of abode inside Connecticut for the entire tax year; and 2) maintains a permanent place of abode outside the state for the entire tax year; and 3) spends not more than 30 days in the aggregate in the state during the tax year. Group B—the domiciliary 1) in any period of 548 con- secutive days, is present in a foreign country for at least 450 days; and 2) during the 548-day period, is not present in Connecticut for more than 90 days; and 3) does not main- tain a permanent place of abode in the state at which the domiciliary’s spouse or minor children are present for more than 90 days. Connecticut’s tax rate for married filing jointly rises from 3 percent on the first $20,000 in six steps to 6.9 percent of the excess over $500,000, and 6.99 percent over $1,000,000. For singles, it is 3 percent on the first $10,000, rising in six steps to 6.9 percent of the excess over $250,000 and 6.99 percent over $500,000. Write: Department of Revenue Services, 450 Columbus Blvd, Suite 1, Hartford CT 06103. Phone: (860) 297-5962 Website: www.ct.gov/drs Email: Contact through the Contact Us page on the website. DELAWARE Individuals domiciled in Delaware are considered residents and are subject to tax on their entire income regardless of their physical presence in the state. Delaware’s gradu- ated tax rate rises in six steps from 2.2 percent of taxable income under $5,000 to 6.6 percent of taxable income over $60,000. Write: Division of Revenue, Taxpayers Assistance Section, State Office Building, 820 N. French St., Wilmington DE 19801. Phone: (302) 577-8200 Website: www.revenue.delaware.gov Email: DOR_PublicService@delaware.gov DISTRICT OF COLUMBIA Individuals domiciled in the District of Columbia are consid- ered residents and are subject to tax on their entire income regardless of their physical presence there. Individuals domiciled elsewhere are also considered residents for tax purposes for the entire portion of any tax year in which they are physically present in the district for 183 days or more. (See 2019 D-40 tax instruction booklet.) The district’s tax rate is 4 percent if income is less than $10,000; 6 percent between $10,000 and $40,000; 6.5 percent between $40,000 and $60,000; 8.5 percent between $60,000 and $350,000; 8.75 percent between $350,000 and $1,000,000; and 8.95 per- cent over $1,000,000.