My husband and I are thinking about retiring to England. We will have
a joint income of $29,628.00. Will we have to file each year? Also
will we be liable  for Federal and State taxes and if so approx how
much. At this time we live in New York State. Thank You for your
assistance.
Lesley Holmes

Hi Grandma ... 

England is a lovely country in which to retire. I attended school
there for several years and later attended University. I am sure
you'll enjoy living there.

With regard to requirements to file U S Income Tax returns, I found
your answers on the IRS Website at:

http://www.irs.gov/formspubs/page/0,,id=12236,00.html

In the IRS Publication, "Questions and Answers", "Filing
Requirements--Where, When, and How" I would refer you to Question 7:

"7) I am a U.S. citizen who has retired, and I expect to remain in a
foreign country. Do I have any further U.S. tax obligations?

Your U.S. tax obligation on your income is the same as that of a
retired person living in the United States..."

If you relinquish your home in the United States, with no permanet
residence in the US, you will file your return at the following
address:

Internal Revenue Service Center
Philadelphia, PA 19255-0215.

Publication 54, "Tax Guide for US Citizens and Resident Aliens
Abroad", will explain the forms and requirements.

http://www.irs.gov/pub/irs-pdf/p54.pdf

Bon voyage and enjoy your retirement!

Serenata

Check page 5 of the pdf document below. The source of your income
determines whether you as a non-resident have to file a state tax
return with the new york state.

http://www.tax.state.ny.us/pdf/2002/inc/it203i_2002.pdf