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post #11 of 27 Old 11-28-2012
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Re: Domicile or Residence...

As a US citizen, you are always domiciled in one state, but only one state. The test for changing domicile is moving to a new domicile (state) with an intent to remain there indefinitely. In theory, you could be domiciled in one state and go travel for 20 years, but until you choose a new domicile (intend to remain indefinitely) you do not change your old domicile. Because the question is one of "intent"--and intent is hard to discern--factors such as having a driver's license, being registered to vote, registering a vehicle or boat, receiving mail.... will all point to domicile in the state in which those things are done.

Most states define residency for purposes of state taxes as where you are domiciled, but there are many exceptions and caveats to this state-by-state, often depending on how many days in a year you are physically in the state.

Domicile has other implications as well outside of tax, though not as important to most people.
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Re: Domicile or Residence...

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I live in Florida, in part because there is no income tax (but mostly because it does not s**w in the winter). I am not asking to provoke you SailorDave, but why would you not want a Florida domicile while you cruise? Was Mickey Mouse mean to you? We can talk severely to him on your behalf if we have to.

No offense, but I just don't like FLA enough to want to live there. And if I'm not going to have even a part time residence there I'm not sure claiming FLA as my domicile would pass the "smell" test.

Out of curiosity, what do ex-pats do who move to another country to live? I know they (may) still have Federal tax obligations, but do they have any state obligations?

CS 36M DIANTHUS
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post #13 of 27 Old 11-28-2012
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Re: Domicile or Residence...

I have a New York state Drivers License with a PO Box listed as my address. She had no trouble putting it in the computer, though she did think it was odd.
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post #14 of 27 Old 11-29-2012
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Re: Domicile or Residence...

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Originally Posted by sailordave View Post
Out of curiosity, what do ex-pats do who move to another country to live? I know they (may) still have Federal tax obligations, but do they have any state obligations?
It depends what state you are talking about. The state that we were from, their is no state income tax, I have never in my life filed anything with my state as far as taxes are concerned. Living in the state or out of the state.

As far as Federal Taxes, yes, you still have to file, but depending on your exact circumstances, you may not have to pay anything and anything that you did pay may be refunded. I was working for a US company and they were paying me in USD, however, I could not manage to get them to not take out Federal Tax although I put in a ton of exemptions on my tax form that I filled out when I started working for them, they thought they were being nice by not taking out the State tax from where the company was based (which was technically not legal for them to do anyways). So every year I had to use the foreign earned income tax exclusion and got a huge refund because I did not owe any federal taxes. Which is the same thing I would have needed to do if they had not taken out the Federal tax, just in that case I would of had the money much sooner.

However, we had other friends who had to file taxes for their state, some had to pay taxes, other didn't. It just depended on a variety of things.
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post #15 of 27 Old 11-29-2012
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Re: Domicile or Residence...

SV G introduces a very good distinction. What is required to be withheld has ABSOLUTELY nothing to do with what you owe. Employers have the legal requirement to withhold (not opining on this posters specific situation) and can be personally liable for it if they don't.

If you don't end up owing anything, you have to go get it back.


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post #16 of 27 Old 11-29-2012
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Re: Domicile or Residence...

You might want to investigate Texas. I was told (in another context) that establishing "residency" in Texas does not require moving there... and they have no state income tax.
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post #17 of 27 Old 11-29-2012
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Re: Domicile or Residence...

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Originally Posted by Minnewaska View Post
When we do so, we are leaning heavily on establishing residency in a state with no income taxes. Leading contenders are NH and FL, right now.

We may not have state income tax here but NH property taxes are a killer.
Although I've lived here most of my life & love it, we're planning on leaving NH once our kids get out of school. It's pretty sad when your monthly property tax bill is close to a house payment.

Personally I'd be looking for a state that has low property taxes if you're looking to own a home. Far as state income tax is concerned, I guess that all depends on what your income is.
For me, I'll be looking at the balance between both issues & go with whatever is the cheaper option in the long run.



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post #18 of 27 Old 11-29-2012
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Re: Domicile or Residence...

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Originally Posted by misfits View Post
We may not have state income tax here but NH property taxes are a killer.
Although I've lived here most of my life & love it, we're planning on leaving NH once our kids get out of school. It's pretty sad when your monthly property tax bill is close to a house payment.

Personally I'd be looking for a state that has low property taxes if you're looking to own a home. Far as state income tax is concerned, I guess that all depends on what your income is.
For me, I'll be looking at the balance between both issues & go with whatever is the cheaper option in the long run.



Bob
Good point. But they didn't seem so bad on some places we've seen. Nevertheless, you're right, it is a balance on what you have to be taxed. In that stage of our life, we don't expect to have a very big house. A condo would even be preferable.


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post #19 of 27 Old 11-29-2012 Thread Starter
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Re: Domicile or Residence...

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Originally Posted by misfits View Post
We may not have state income tax here but NH property taxes are a killer.
Although I've lived here most of my life & love it, we're planning on leaving NH once our kids get out of school. It's pretty sad when your monthly property tax bill is close to a house payment.
While I don't know that I'd want to live that far north... Property taxes wouldn't be an issue if we didn't own a house and were off cruising!
I was looking at the KIPLINGERS site and they have some good info for retirees and all the different tax issues by state. And you're right; Income tax is NOT the only thing to consider.

CS 36M DIANTHUS
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post #20 of 27 Old 11-29-2012 Thread Starter
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Re: Domicile or Residence...

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Originally Posted by miatapaul View Post
I have a New York state Drivers License with a PO Box listed as my address. She had no trouble putting it in the computer, though she did think it was odd.
I can't imagine that any state is still doing this. Maybe you're grandfathered in or something, but everyone I know regardless of what state has had to provide a physical address. Thank you PATRIOT ACT...

CS 36M DIANTHUS
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