I have a GC since a couple of years back and am married to an american citizen. At the moment, we are abroad while my wife is studying for 18 months. I have got a job and making money outside of the US. I have also obtained a re-entry permit to further show the intent to move back once my wife is done with school.
For the 2004 tax return, should I file as resident in a state or not? The federal taxes are easy enough to get through and avoid double-taxation. However, I am not sure what to do on the state taxes (CA). I can file as resident for the period that I have earned money abroad but then I get double taxed (which seems weird and there in no place to deduct this tax like you can at the federal level with the foreign tax deduction). I could also file as a non-resident but I have always thought that this is a big NO-NO as far as keeping the GC.
Anyone?
For the 2004 tax return, should I file as resident in a state or not? The federal taxes are easy enough to get through and avoid double-taxation. However, I am not sure what to do on the state taxes (CA). I can file as resident for the period that I have earned money abroad but then I get double taxed (which seems weird and there in no place to deduct this tax like you can at the federal level with the foreign tax deduction). I could also file as a non-resident but I have always thought that this is a big NO-NO as far as keeping the GC.
Anyone?