Americans working overseas still owe state tax
2015-04-07
Don’t assume that working overseas precludes you from paying state taxes
Every American citizen has a legal state of residence. A taxpayer
arriving to a new overseas duty station and home does not lose their
state residency status. Some states opt to treat military pay as
non-taxable under strict criteria, but the exemption does not apply to
military spouse or Defense Department civilian earnings overseas.