Overseas civilians and state taxes..

[Tanimaga]

I have always been told by H&R Block that I do not need to pay state taxes being a civilian NAF employee overseas.

I'm originally from Ohio, and have not filed a state tax return since 1994. I paid them when I was in the military to the best of my knowledge, but I can't seem to get a straight answer from the Ohio dept. of taxation. They just send me a quote from the tax books about servicemembers overseas.

I will eventually run into some inheritance, and don't want to get stuck with backlogged taxes and penalties.

[Carl]

It depends on your state about the taxes, but everything thing up to 87k is free from federal tax AFAIK. Also, although it is tax-free, you still have to file your taxes to let the IRS know that you are supposed to be tax-free.

[Okiman]

I would check on the 2555 Foriegned Earned Income IRS tax form first since some there is kind of a gray line when it comes to civilians working overseas. The easy tests to see if you file the 2555 form is if you can get free medical/dental and schooling for the kids, then chances are you can not use the 2555 form, and need to pay the taxes. Good luck

[Just John]

My state laws in regards to military overseas changed more than once in the last few years, so maybe yours have changed in regards to being a civilian NAF employee.

Gotta find a lawyer that can decipher. A state employee (or H/R Block flunky) that doesn't quite understand your question might get you in a lot of hot water.

[Tanimaga]

Finally got a straight answer from the Dept. of taxation. If I'm not physically in the state, don't even have to file. Yippy!