I’m an Iowan who’s been living overseas for over 23 years. I earn all my income outside the US, and it’s under $50k a year. This week, I got a letter from the State of Iowa saying I didn’t file state taxes for 2021. I’m trying to figure out why, because I haven’t had to file since 2002.
I have an address at my father’s house in Iowa, but haven’t worked or earned money in Iowa since 2002. I always file my federal taxes, but according to Iowa law, I don’t need to file state taxes if I had no income in the state.
Does anyone have any idea why I might have received this letter? I’m going through my tax records (which I paid an accountant to handle, like I always do). I know I didn’t have Iowa income, but I’m worried that someone could have been using my name illegally. I can’t think of anything else, but I don’t have any indication of fraud. I did receive government support during Covid, like everyone else, but that was reported on my federal filing if I remember correctly.
Sometimes states send out these letters if they see your name linked to an address in their state. If you didn’t live there and didn’t earn income from Iowa, the letter should just be a mistake.
Did you maybe have any professional licenses active during that time? I’ve seen Missouri send these letters to attorneys who live in Florida, asking why they’re still holding a license in Missouri if they aren’t practicing there.
@Harlem
Also, the state of Iowa might consider you a resident until you prove that you’ve moved elsewhere. They may want some proof of when and where you established your new residency.
Kirby said: @Harlem
Also, the state of Iowa might consider you a resident until you prove that you’ve moved elsewhere. They may want some proof of when and where you established your new residency.
Yes, you’ll need to show Iowa that you really live abroad now and that your ‘home’ is no longer there.
@Harlem
I’ve had a client who’s lived in California for over 10 years with no income from Iowa, but the Iowa Department of Revenue sent them a similar notice for 2022. The agent I spoke to said something similar to what you just mentioned.
@Harlem
I don’t have any professional licenses except for a ham radio license, which I only got because I needed it to get my license here in South Korea. I haven’t worked or earned any money in the US for 23 years. I kept an address at my father’s house so I could get important mail and maintain my credit cards.
If you got any tax forms with an Iowa address, that might be why you ended up on their radar. Many states have rules for expats that could still create a filing obligation or even a state tax obligation. If Iowa is your ‘domicile’ in the US, you might still be expected to file.
Remember, being considered a resident for tax purposes doesn’t always depend on where you live—it also includes where your closest ties are. Voting in Iowa, even by absentee, could be one reason they flagged you. They’re comparing your time and connections with other states, not just countries.
I don’t know if receiving mail alone would be enough to consider you domiciled there, but you can check this list to see if you can argue that your home state is somewhere else: [link].
If you’ve been filing federally and using your Iowa address, I’m surprised this didn’t come up sooner. They may have noticed the address and compared it to your federal filings, which showed income but no Iowa filing.
As others mentioned, proving that you live abroad with supporting documents should clear things up.
Michigan is overhauling their computer systems, and they’re finding old accounts. I got a similar letter from them, even though I haven’t lived there since 2007. It might be something like that happening with Iowa.