Tax Question

[HUDcripple]

Interesting, but I'd like to see an example of a case where CA went after a military member's income whose legal residence is in another state. I fit that scenario - come and get me you communist fvcks!

Brett

Brett, I don't mean to suggest that CA would go after you for taxes, but Shadow is a legal resident of CA. I think that if he gets stationed in CA, and then tries to change his legal residence (AKA domicile) to another state, CA might try and challenge the change.
When I was in CA they used my military income to raise the tax bracket of my wife. This is now illegal thanks to the Servicemember's Civil Relief Act.
They were also cracking down on folks going to Oregon to buy cars IOT dodge the sales tax.
I know a guy who knows a guy who talked to a dude who heard a rumor that CA also tries to "hold onto" anyone who retires from active duty in CA, guys used to try and get sent to NV for their last 30 days.

Also:
"Home of Record" is a military term, the IRS and state tax folks don't care. The buzzword they use is "domicile".

...This was issue for me when I tried to register my car in FL as a resident for the first time. The DMV/MVA/whatever wanted to see my LES with the FL selection on it. If I had just turned off withholding but kept my previous state (CA) they would not have accepted it.

The LES box is just where you've told the military your state of legal residence is, it doesn't make it so. If the DMV wants to see it that's fine, but it doesn't make you a Florida legal resident by itself. It would be part of "demonstrating an intent to settle permanently" (see my prev. post)

I would like to keep NY as my state of residence, but change my state of residence for tax purposes, is this possible?

No. Your state of legal residence is where you pay taxes (or not, depending on state law) on your military pay, and any income that isn't earned in any particular location(i.e. interest and dividends).
If you hold onto a house and rent it out when you transfer you pay state tax on any net income that house generates to the state where the house is located. This is done by filing as a non-resident (unless that state is your state of legal residence).
Personal example: I'm in Italy. I'm a legal resident of PA. My wife is a legal resident of VA. We own a house jointly in Va Bch. I pay taxes to VA on my half of the earnings as a non-resident, and she pays taxes on her half as a resident.
Also, your civilian spouse pretty much has to change her/his legal residence to wherever they are actually living. If you go overseas it stays in the state from which you left.

 

[HH-60H]

The LES box is just where you've told the military your state of legal residence is, it doesn't make it so. If the DMV wants to see it that's fine, but it doesn't make you a Florida legal resident by itself. It would be part of "demonstrating an intent to settle permanently" (see my prev. post)

Oh, I know. I was just using that as an example to show that it might be necessary to change that item on an LES.

 

[RiceOwl06]

Well,
I'd like to thank everyone with all of the help and suggestions. I guess I now have to think about if there are any benefits to me being a New York residence (not for tax purposes). I hope to God I never end up there ever again, so I'm guessing not. 18 years was enough.

 

[HooverPilot]

Personal example: I'm in Italy. I'm a legal resident of PA. My wife is a legal resident of VA. We own a house jointly in Va Bch. I pay taxes to VA on my half of the earnings as a non-resident, and she pays taxes on her half as a resident.

You don't mean to say that you are paying income tax to VA do you? You are not a resident of the state! Of course you have to pay property taxes on the house, but that should be it. Just because you own a house in a state doesn't mean you have to pay income tax there. Please clarify if I have misunderstood you.

-HP

 

[HH-60H]

You don't mean to say that you are paying income tax to VA do you? You are not a resident of the state! Of course you have to pay property taxes on the house, but that should be it. Just because you own a house in a state doesn't mean you have to pay income tax there. Please clarify if I have misunderstood you.

-HP

He's talking about only the income derived from renting his house in VA.

 

[HooverPilot]

He's talking about only the income derived from renting his house in VA.

Gotcha, that's what I thought, but I wasn't certain.

 

[HUDcripple]

He's talking about only the income derived from renting his house in VA.

correct

 

[FLYTPAY]

My state (New York), charges state income tax, but as long as you aren't there for 30 days or more, you can get all of the money back.

http://sports.yahoo.com/mlb/news?slug=ap-yankees-jeter-taxes&prov=ap&type=lgns
Derek Jeter, New York Yankees captain, claiming Florida residency to keep from paying state income tax to NY. If he gets away with it, my wife should not have to pay state incoem tax in Mississippi even though she is a Florida resident.