State Taxes For Military

[investmurr]

Missouri State Taxes-Red

Red: Thanks. That makes since, I get the Missouri back. But! do I have to pay state taxes to Ca. since my condo is there and i am stationed there. I guess the question is do you have to pay taxes to some state(unless you are in a non-tax state ie. Fl,Tx.) Red your answer is the best and fits my tax software so for. just wondering, if I get Mo. back am I obligated to pay Ca. Thanks

 

[snake020]

Red: Thanks. That makes since, I get the Missouri back. But! do I have to pay state taxes to Ca. since my condo is there and i am stationed there. I guess the question is do you have to pay taxes to some state(unless you are in a non-tax state ie. Fl,Tx.) Red your answer is the best and fits my tax software so for. just wondering, if I get Mo. back am I obligated to pay Ca. Thanks

The only way you owe income tax to CA is if you are a CA resident and are stationed in CA. If you are a nonresident or are a resident stationed outside of CA, you do not pay income tax to CA.

 

[Steve Wilkins]

Home of record and State of Residence are two different things. And you get to choose where the military moves you upon getting out, it wont automatically be to your listed HOR.

Yes, you get to choose, but you are only entitled to have your household goods moved no further than the distance between your last duty station and your home of record. If your last duty station before getting out is San Diego and your home of record is Los Angeles, you are only entitled to move your belongings to a location that is equidistant to the distance between San Dog and LA. Any further and it's on your own dime.

 

[OldNavy]

I was born in FL, but never came back, except to visit.

I became a FL resident the day I joined the Navy. There was a PN1 who was helping, suggested it, so I did it. He saved me thousands per year. (MA is 5.85%)

I became a resident of Texas as soon as I hit my first duty station (VT-27 / Corpus) and maintained it throughout my carreer.

Retired in Norfolk in 1995, and not like cold weather, snow or taxes, immediately moved to sunny Florida!

 

[Red_]

Red: Thanks. That makes since, I get the Missouri back. But! do I have to pay state taxes to Ca. since my condo is there and i am stationed there. I guess the question is do you have to pay taxes to some state(unless you are in a non-tax state ie. Fl,Tx.) Red your answer is the best and fits my tax software so for. just wondering, if I get Mo. back am I obligated to pay Ca. Thanks

I never had to pay CA taxes while I was there. They even sent me a notice stating I did because I had a CA license and car registration. A copy of my LES straightened everything out. However, I did not own property there and I was not married to someone claiming CA, so I don't know how those affect you.

 

[Huggy Bear]

. But, as I understood what the JAG told me, claiming residence willy-nilly can have tax ramifications.

In other words, if you choose to continue listing your official residence based off of the apartment you rented for 5 months in A-pool, the state you switched from can call BS and come after you in court for back taxes. Technically. Thus, it is best from a legal standpoint to switch to a state where you either own property or have some history there through family, college affiliations, or other ways to make the case that you do indeed intend on going there when you leave the military. That said, I am not a lawyer. Caveat Emptor.

Exactly. You can go down to PSD and claim whatever state you want. The "Navy" doesn't care. However, that doesn't mean you are legally a resident of that state. For example, florida requires you to have a driver's licence or be registered for the vote in their state. In order to do that, you have to have a valid residence in that state in which you actually live.

You can go claim florida, and you may get away with it, but do you want to risk tax evasion, voter fraud, etc....

 

[snizo]

^^
Or have had a legal residence in Florida.

You can get a Florida driver's license, car registration, etc with a California address on it if you're on active in the military.

You can keep your registration at an address in FL and just do absentee voting.

 

[Circle K]

In addition to states that do not have an income tax there are states like California(already mentioned) that do not require you to actually pay taxes unless you are a resident and stationed there. MO sounds like the rules are similar. Master has a good point, who wants to file when they don't have to, and who wants to give the government a zero interest loan? Obviously, nobody if they can help it. There is a way to avoid both and still keep your residency in states like that. I know from personal experience that Ohio is one of them. Look up a DD Form 2058-1. Make sure you read the rules first but it effectively makes your witholding zero and exempts you from filing taxes as long as the conditions are met.

 

[Brett327]

Exactly. You can go down to PSD and claim whatever state you want. The "Navy" doesn't care. However, that doesn't mean you are legally a resident of that state. For example, florida requires you to have a driver's licence or be registered for the vote in their state. In order to do that, you have to have a valid residence in that state in which you actually live.

You can go claim florida, and you may get away with it, but do you want to risk tax evasion, voter fraud, etc....

What's with all the hand wringing on this subject lately? I've been a FL "resident" as far as PSD is concerned since '91 but I haven't lived there since '00. I've lived in 2 other states since where I've voted and owned property locally. I also have a FL driver's lic with a CA address on it. This is a common practice that people have been doing for years and years and I have never heard of anyone having any problems with it whatsoever. Just do it.

Brett

 

[investmurr]

Ca Taxes

Thanks Red that is a big help. I may try to file Married filing separately to see how that affects me. The accountants of the word have no freakin clue how this works in case anyone is interested. I have asked many of them. Bottom line, join the Navy declare residency in Florida. Avoid taxes. amazing the IRS hasnt figured this one out yet. How many billions has this cost them. Thanks again.

 

[MasterBates]

Doesnt cost the IRS Jack..

Cost state revenue agencies money, but imagine the politcal shitstorm it would cause if they tried to force military members to "stay" in their state..

 

[investmurr]

Taxes

Yea, great point. Wish the military informed some of us about this when I signed BDCP for Aviator back in college. Who can you see on base that would know the most about this? Actual individual situations?

 

[Huggy Bear]

What's with all the hand wringing on this subject lately? I've been a FL "resident" as far as PSD is concerned since '91 but I haven't lived there since '00. I've lived in 2 other states since where I've voted and owned property locally. I also have a FL driver's lic with a CA address on it. This is a common practice that people have been doing for years and years and I have never heard of anyone having any problems with it whatsoever. Just do it.

Brett

Exactly what I said. You lived there, you have a florida drivers license. So don't rolleyes me. :irked_125

 

[Brett327]

Exactly what I said. You lived there, you have a florida drivers license. So don't rolleyes me. :irked_125

I don't think anyone is suggesting that people who haven't lived there should claim FL as their legal residence. If they are, then they're wrong and I rescind my .

Brett

 

[Huggy Bear]

I don't think anyone is suggesting that people who haven't lived there should claim FL as their legal residence. If they are, then they're wrong and I rescind my .

Brett

Well, I was a dumbass for not becoming a florida resident when I was there for my two month API touch and go. I was 22 and just excited to be earning a paycheck and getting ready to fly airplanes. Changing residency for the purposes of state taxes was the furthest thing from my mind. Sure enough, 10 years later, I am back in california and paying state taxes. My advice to anyone going to API is to become a florida resident. Once you are there, you can become a resident and keep that residency as long as you are in the military.