The State Tax Exit Checklist (Cut Ties + Build Proof)
What To Close, What To Keep, What To Document
One thing held me back from leaving years ago was the question:
What if my home country comes after me?
What if they tried to make me pay taxes I didn’t know I owed? What if they did things I didn’t even know they could do?
I wanted to leave. I just didn’t have the courage.
So I did what most of us do when we’re scared:
I opened my laptop.
Forums. Blog posts. Government websites.
Nineteen tabs open. All saying something different.
“Don’t worry, they never check.”
“If you don’t file X you’ll owe millions.”
“Just talk to an accountant, it’s simple.”
Well, it didn’t feel simple.
And here’s the truth:
I wasn’t actually preparing.
I was marinating in anxiety and calling it “research”
The real problem?
I didn’t know what the rules were. And nobody seemed to agree.
Every article contradicted the last one. Every forum had different advice.
No one was willing to say, “Here is the path. Step by step.”
One night, staring at yet another conflicting answer, it finally clicked:
No one is coming to make this clear for me
If I want safety, I have to build it myself.
So I changed my approach.
I stopped scrolling and started treating it like a project.
I talked to tax lawyers.
I read the actual state tax codes.
I mapped out what “cutting ties properly” really means.
I built a paper trail that proves I actually left.
Slowly, the fear turned into a checklist.
Now, I feel prepared.
And now I’m sharing the systems with you. Because if you’re thinking about leaving, you don’t need more opinions.
You need a plan.
Which is why I created two systems:
System 1/ Cutting Ties. Cut formal ties properly (what to close, what to keep, exact timing)
System 2/ Prove You Live Abroad. What tax offices check when you claim foreign residency
Each system includes steps, common mistakes, and a checklist to make sure you are prepared.
System #1/ Cutting Ties
So, you moved abroad.
You got your visa. Rented an apartment. But your home state?
They don’t care. They assume you’re coming back unless you prove otherwise.
Moving abroad doesn’t automatically end your state tax obligations
You will always owe federal taxes as a US citizen (unless you qualify for certain exclusions or renounce citizenship). But state taxes are different. Each state decides independently whether you’re still a resident.
And if they decide you still are?
You owe state tax on your worldwide income, including what you earn abroad.
You have two ways to avoid this.
Move to a no-tax state before leaving the US (Florida, Texas, Nevada, etc.). Establish residency there, then leave the country. No state tax.
Cut all ties with your current state properly. Prove you left permanently, not temporarily.
If you don’t do either, your home state can keep taxing you for years.
Sticky states are the worst.
California, New York, Virginia, South Carolina, New Mexico. These states use something called a “domicile” test. It’s subjective and works in their favor.
What to close before you leave
Your driver’s license is one of the key ties.
You keep your California license while living in Ireland? California sees that as proof you’re still a resident.
Voter registration works the same way. So does a permanent address. These are ties. Legal ties. And they (can) cost you.
But you can’t close everything.
Credit cards maintain your US credit score. Some bank accounts make sense if clients pay you in dollars. A virtual mailbox keeps official mail flowing without creating a residency claim.
I created the “Sticky States Ties Checklist” to make this easier
Print it and use it to close the right things. There is also a PDF to download after the bullet list.
Close These (Create Residency):
Driver’s license from your home state
Vehicle registration
Voter registration
Permanent residence (home/apartment lease in your name)
Storage unit with personal belongings
Utility bills in your name (electric, water, gas, internet)
Professional licenses you’re not using (doctor, lawyer, CPA, etc.)
Gym memberships
Country club memberships
Professional association memberships
Keep These (Functional, Not Ties):