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State Taxes For Military

Heloanjin

Active Member
pilot
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.

Not true. When you retire, the Navy will move you anywhere CONUS. Doesn't matter what your HOR is. If your HOR is OCONUS, they will move you there if you want. This is clearly explained during TAP. Unfortunately, it isn't clearly explained any other time.
 

snake020

Contributor
Not true. When you retire, the Navy will move you anywhere CONUS. Doesn't matter what your HOR is. If your HOR is OCONUS, they will move you there if you want. This is clearly explained during TAP. Unfortunately, it isn't clearly explained any other time.

I thought the amount they paid was the cost it would be to move you from your last duty station to your HOR and you had to make up the difference if the cost was more than that. Is this not true?
 

Heloanjin

Active Member
pilot
I thought the amount they paid was the cost it would be to move you from your last duty station to your HOR and you had to make up the difference if the cost was more than that. Is this not true?

That's the urban legend, but one that's not true.
 

boobcheese

Registered User
Not true. When you retire, the Navy will move you anywhere CONUS. Doesn't matter what your HOR is. If your HOR is OCONUS, they will move you there if you want. This is clearly explained during TAP. Unfortunately, it isn't clearly explained any other time.

It was my understanding that if you retire (ie do 20+ yrs) then yes they will move you anywhere in CONUS but if you get out prior to retirement they limit the amount of government funding to a max distance equal to distance from your present duty station to your HOR. I obviously have no direct experience with either situation so take that FWIW.
 

metro

The future of the Supply Corps
I don't suppose that attending OCS counts for claiming residency? Having found this out, I am now very interested in finding out if I can wrangle anything to save myself some cash.
 

Brett327

Well-Known Member
None
Super Moderator
Contributor
Interesting coincidence with this thread and my real life. On Friday I received a letter from the state of CA asking me to clarify why I haven't filed state income taxes for the past three years. There's a box on their form that essentially says "Non-resident Active duty military AND does not maintain a domicile in CA AND has no CA income to report. After referring to their FTB Pub 1032 "Tax information for military personnel," I found the following interesting (and helpful) tidbits.

1. Domicile for the purposes of determining residency means where you maintain a true, fixed home and permanent establishment to which you intend to return and which you intend to make your permanent home.

2. Military members domiciled outside of California are considered nonresidents for tax purposes even when stationed in California on PCS orders.

3. A person shall not be deemed to have acquired a residence or domicile in any state solely by reason of being there in compliance with military orders.

4. Compensation for military service is not considered to be from sources within the state where a member is stationed if that state is not the member’s domicile.

Basically, if you PCS to CA and don't intend for CA to be your permanent home after completion of your military service, then you're exempt from state income taxes. Obviously, if you're a resident of CA or if you entered military service from CA, then these rules do not apply to you.

Obviously different states have different rules, but #3 comes from the SSCRA and supersedes any otherwise applicable state laws.

Brett
 

Steve Wilkins

Teaching pigs to dance, one pig at a time.
None
Super Moderator
Contributor
Interesting coincidence with this thread and my real life. On Friday I received a letter from the state of CA asking me to clarify why I haven't filed state income taxes for the past three years. There's a box on their form that essentially says "Non-resident Active duty military AND does not maintain a domicile in CA AND has no CA income to report. After referring to their FTB Pub 1032 "Tax information for military personnel," I found the following interesting (and helpful) tidbits.

1. Domicile for the purposes of determining residency means where you maintain a true, fixed home and permanent establishment to which you intend to return and which you intend to make your permanent home.

2. Military members domiciled outside of California are considered nonresidents for tax purposes even when stationed in California on PCS orders.

3. A person shall not be deemed to have acquired a residence or domicile in any state solely by reason of being there in compliance with military orders.

4. Compensation for military service is not considered to be from sources within the state where a member is stationed if that state is not the member’s domicile.

Basically, if you PCS to CA and don't intend for CA to be your permanent home after completion of your military service, then you're exempt from state income taxes. Obviously, if you're a resident of CA or if you entered military service from CA, then these rules do not apply to you.

Obviously different states have different rules, but #3 comes from the SSCRA and supersedes any otherwise applicable state laws.

Brett
I must say, nicely done. When all else fails, pull the pub. Works in the Navy and in real life too.
 

mmx1

Woof!
pilot
Contributor
Holy thread resurrection.

So where do I go to file the change of residency as a Marine? CPAC?
 

NUFO06

Well-Known Member
None
So then, if my wife and I are FL residents stationed in CAL filing jointly. Does she have to pay taxes to CAL from her paycheck?
 

langer

Member
I have a question- are you able to live in Florida, change your legal residence to Florida...but not change your tags over? How complicated is it to establish Florida residency? Is it true that auto insurance premiums will jump up with Florida tags?
 

HH-60H

Manager
pilot
Contributor
I have a question- are you able to live in Florida, change your legal residence to Florida...but not change your tags over?
Yes.
How complicated is it to establish Florida residency?
It's not hard, but you can help to establish residency by switching your tags over. Other ways include registering to vote in FL and changing your LES withholding. I would guess purchasing property would too. You are trying to demonstrate that you intending to be a Florida resident, so all of those things help. Having attachments to other states do not help.

However, in practical terms all you have to do is change your LES withholding and 'declare' (at least in your own head) that you are a FL resident. The other factors I described above would come into play if there was some kind of investigation or conflict. For instance, if your old state tried to charge you income taxes for being a resident of that state, you would have to "prove" to them (or possibly a court) that you changed residency.

In FL, you need to change your LES withholding because the DMV asks for it when you try to register your plates as a military resident.
Is it true that auto insurance premiums will jump up with Florida tags?
I don't recall any big differences, but it has been awhile since I had a car registered in FL.
 

magnetfreezer

Well-Known Member
Is it true that auto insurance premiums will jump up with Florida tags?

FL has the no-fault system which jacks rates up for everyone; mine jumped about 50% moving from IL to FL with USAA and keeping the old registration; they did not even ask for the plate number. What matters is where the car is physically located so you will still need a FL insurance policy in either case.
 

red_stang65

Well-Known Member
pilot
Questions with another scenario:

My wife's in San Diego, but I'm still in FL. We're also in the process of buying a condo in CA. If I were to switch to FL residency (and register to vote, but NOT change tags over), would we have to file separately this year, and would we run into any problems with the home-buying? Also, we're getting the Cal-Vet Loan. Insight?
 
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