The Foreign Service Journal, February 2008

F E B R U A R Y 2 0 0 8 / F OR E I GN S E R V I C E J OU R N A L 55 PENNSYLVANIA: Pennsylvania tax authoritieshave ruled thatPennsylvania res- idents in the U.S. Foreign Service are not on federal active duty for state tax purpos- es and thus their income is taxable com- pensation. For individuals domiciled in Pennsylvania, there is no tax liability on non-Pennsylvania source income if the individual hasnopermanent placeof abode in Pennsylvania, has a permanent place of abode elsewhere, and spends nomore than 30days inPennsylvaniaduring the taxyear. Anabode is not permanent if it is occupied onlyduringa fixedor limitedperiodof time for aparticular purpose. Pennsylvaniadoes not consider government quarters overseas to be a “permanent place of abode else- where.” If there is no tax liability, filing a return isnot required, but it is recommend- ed to preserve domicile status. Residents must file FormPA-40 for income received from all sources; nonresidents must file Form PA-40 for income derived from Pennsylvania sources. Pennsylvania’s tax rate is a flat 3.07percent. Write: Common- wealth of Pennsylvania, Department of Revenue, Taxpayer Services Department, Harrisburg PA 17128-1061. Phone: (717) 787-8201. E-mail: Link through the Web site’s “Contact Us” tab. Web site: www.revenue.state.pa.us PUERTO RICO: Individuals who are domiciled in Puerto Rico are considered residents and are subject to tax on their entire income regardless of their physical presence in the commonwealth. Normally, they may claim a credit, with certain lim- itations, for income taxespaid to theUnited States on income from sources outside PuertoRico and for any federal taxes paid. See the current forms on the Web site for 2007 tax rates. Write: Departamento de Hacienda, P.O. Box 9024140, San JuanPR 00902-4140. Phone: (787) 721-2020, ext. 3611, or toll-free 1 (800) 981-9236. E-mail: infoserv@hacienda.gobierno.pr Web site: www.hacienda.gobierno.pr RHODE ISLAND: Individuals domi- ciled in Rhode Island are considered resi- dents and are subject to tax on their entire income regardless of their physical presence in the state. Rhode Island tax is calculat- ed based on the Federal Adjusted Gross Income figure, and will generally be about 25 percent of the federal tax liability. Refer to the tax division’s Web site not only for current informationandhandy filinghints, but also for forms andregulations todown- load. Write: Rhode IslandDivisionof Tax- ation, Taxpayer Assistance Section, One Capitol Hill, Providence RI 02908-5801. Phone: (401) 574-8829, between 8:30 a.m. and 4 p.m. EST. E-mail: txassist@tax.state.ri.us Web site: www.tax.state.ri.us SOUTH CAROLINA: Individualsdomi- ciled inSouthCarolina are considered res- idents and are subject to tax on their entire income regardless of their physical presence in the state. SouthCarolina imposes agrad- uated tax ranging fromaminimumof 2.5 percent on the first $2,500 rising in six steps to a maximum of 7 percent on taxable income over $100,000. Write: South Carolina Tax Commission, 301 Gervais Street, P.O. Box 125, Columbia SC29214. Phone: (803) 898-5709. E-mail: iitax@sctax.org Web site: www.sctax.org A F S A N E W S