The South Dakota Trick That Stops State Tax Notices Before They Start

Описание: Before you move abroad, there's one stop that could save you from years of headaches with your home state - and most expats have never heard of it.

In this video, we walk through how state tax residency actually works for Americans living overseas, why some states are much harder to escape than others, and the specific strategy we use at McGowin Tax to help clients cleanly break their state domicile without getting stuck in an impossible catch-22.

You'll learn why domicile is about intention - not just where you physically are - and how something as simple as a driver's license can keep a state chasing you even after you've built a life on the other side of the world. We cover a real client case from Alabama where the state kept demanding proof that didn't legally exist in the tax code, but still had the power to make life difficult.

Then we break down exactly how the South Dakota system works: the virtual address, the one-night stay, and the affidavit of residency that makes it all legal and straightforward.

This is the kind of forward-thinking, problem-prevention work that's part of our Tax Confidence Package - because the best time to get your documentation right is before a notice ever shows up in your inbox.

📖 CHAPTERS
00:00 Why Expats Stop in South Dakota Before Moving Abroad
00:47 State vs. Federal Taxes: How Residency Really Works
01:55 Domicile & Breaking Ties (Why States Like California Are ‘Sticky’)
02:37 The Driver’s License Problem + Real Alabama Case Study
04:18 The South Dakota Driver’s License ‘Trick’ Explained
04:41 Step-by-Step: Virtual Address, One Night Stay, Affidavit of Residency
05:53 Using SD Residency to Shut Down State Tax Notices
06:11 When You Do (and Don’t) Need This Strategy + New Voting Rule
07:40 Wrap-Up: Tax Confidence Package & Preventing Future State Issues

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ABOUT MCGOWIN TAX
McGowin Tax is a boutique CPA firm specializing exclusively in international taxation. Founded by former Big 4 tax professional Alex McGowin, we provide global tax solutions with personal attention—helping U.S. expats, digital nomads, and international businesses stay compliant and keep more of what they earn.

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