Do You Have to Pay Delaware State Taxes on Foreign Income?
Delaware treatment of foreign income
Delaware Allows You To Be Domiciled But Not Pay State Income Tax
Very few states allow you to remain domiciled in their state, but not pay tax on your out-of-state income if you meet certain requirements. Delaware just happens to be one of these states.
If you maintain a domicile in Delaware, you are considered a nonresident if you were out of the United States for at least 495 days in the last 18 consecutive months, and you did not have a permanent place of abode in Delaware for you, your spouse, your children or your parents at which you were present for more than 45 days. This does not apply to members of the Armed Forces or employees of the United States, its agencies or instrumentalities, which means that they are still required to file as residents of Delaware even if they live overseas so long as they are domiciled in Delaware.
When you are ready to have your return prepared please send me an email to get the process started.
Areas of Practice
expat tax preparation
Foreign earned income and housing exclusions for both federal and state income tax returns. Foreign bank account reporting (FBARs), Statement of Specified Foreign Financial Assets, Tax Treaties, Application for IRS Individual Taxpayer Identification Number,etc.
business tax debt representation
We will file a power of attorney with the IRS and State Taxing Authority to negotiate a hold on all enforcement action such as bank and account receivable levies while we work on an appropriate resolution including Installment Agreements, Company Restructuring, Penalty Abatements, Offer in Compromises, and Currently Not Collectible Status. We will also advise you if bankruptcy is an option.
irs and state tax debt representation
We will file a power of attorney with the IRS and State Taxing Authorities to negotiate an appropriate resolution for back tax debt including Installment Agreements, Penalty Abatements, Offer in Compromises, Innocent Spouse Requests, and Currently Not Collectible Status. We will also advise you if bankruptcy is a option.
new business entity formation
We will educate you of the pros and cons of organizing an Limited Liability Company versus a Corporation, S-Corp., Limited Partnership, etc. and assist in the formation of the entity of your choosing.
previous years tax returns
We will prepare your previous years tax returns to bring you back into compliance with the IRS and State.
business tax return preparation
Whether you have a sole proprietorship with a Schedule C or a 1120 Corporate return we will prepare any business return.
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For job opportunities, please email us your resume. We’re always looking for new and exceptional talent to lead the firm into uncharted fields of practice.