Handling income & taxes from multiple states

[Bster13]

I plan to make my domicile in Florida.  Florida has no income tax, but I may work in other states with varying income rules.  For those of you working a job in a bunch of states as you move about the country, how do you stay on top of tax rules pertaining to reciprocal agreements between states (maybe you plug it all into Turbotax and it figures it out for u?), and also are there any resources for determining how long you can work (and live) in a state before you are required to file there with your domicile?

For example... if I were to move my domicile to Florida, and bounce around the country for most of the year, but caught a nice job in NY for the winter at a ski resort.  Are there rules to the effect of "if you work in NY for <182 days, you can keep your domicile in FL, but the second you crest 182 days, you need to move your domicile to NY?"  

Why does this matter (to my understanding) even if you are paying NYS income taxes on the wages you made there and of course nothing to FL since they have no income taxes?  Well, if you have any sort of investment portfolio, you have dividends and capital gains from selling investments, and certain states tax pensions and SS differently as well.  In Florida all income is tax free, but in NYS they can tax you on that type of income.  So if I work a winter job at that ski resort for too long, I not only get taxed on that regular income from the ski resort, but any supplemental income I need from investments gets nailed too.

I've only ever worked in one state, so apologies for my lack of understanding.

 

[Optimistic Paranoid]

Bob did a blog post on this:

http://www.cheaprvliving.com/budget/paying-taxes-drawing-unemployment-vandwellers-rvers/

 

[Vanholio]

I can't answer the question in full. But I literally finished my 2015 taxes 10 minutes ago on TurboTax. (Can we say "extension"?) At one point, TurboTax asked if I had income from other states, so it's obviously built into program. Even asked me about assets and income offshore. Wish I was that swanky.

 

[ccbreder]

Every state has their own rules. The tax information gathered from blogs and forums are worth less than you have paid. You should at least get a premium tax program, better, if you have investment income as well a salary, talk to a CPA in the state of concern.

 

[WriterMs]

I'm pretty sure Becky at

http://www.interstellarorchard.com/useful-stuff/


has some blog posts with detailed info on how she does hers for income from at least a few states in any given year. The specific link above is to her reference page for useful stuff. Look under the Full-timing Logistics section for her info on taxes.

 

[DannyB1954]

When I moved from Ca to Nv, I had to do a partial year tax return for Ca. So Ca was entitled to the money I made up until november. Nevada has no State tax.

 

[Optimistic Paranoid]

A ton of people live in NJ (or "Joisy" as we say here) and work in NYC, so clearly there is nothing that says that if you work "more than x number of days in NY you must become a NY resident".

Apparently, you file a non-resident return with NY only on your salary, and any income from stocks, bonds, etc. gets reported only to your home state.

Info here:

https://www.priortax.com/filing-late-taxes/filing-taxes-in-two-states-living-nj-working-ny/

 

[Bster13]

Ok, so working in other states than my domiciled state and reporting income, and paying taxes may be no big deal (thank you everyone for the info), I just need to look more into the "proving residency" thing for Florida.  I guess Id I am moving around the country to many different places and wintering in Florida...I've spent the majority of my time in FL, and I think I'd be ok.  But if I took a job in another, single state for >182 days, that's when I start to wonder.  Thanks.

 

[Optimistic Paranoid]

I just need to look more into the "proving residency" thing for Florida. 

Apparently you file a "Declaration of Domicile" document in Florida.

https://www.escapees.com/support/ma...ticles/entry/how-to-move-to-florida-in-1-hour

 

[Bster13]

OK, reading a bit more, there are tests for statutory residence (you are proven to be in said state more than half the year) and then if that test does not fly, some states perform a domicile test where they look at where you bank is, where you receive your mail, where you voted, etc.:

http://www.metrocorpcounsel.com/art...dency-versus-domicile-new-york-state-and-city

So I guess in that domicile test, if I no longer have a home to rent/own in the state I'm trying to avoid state income tax, that certainly goes a long way.

 

[Reducto]

I have income from at least 3 states every year. You have to file in every state you received income if they have an income tax. I've been using turbo tax for this and it's fine but a hassle because they charge you individually for every state even with the more expensive package. In the past I've used it for my federal taxes then done the states by hand since the forms are usually simpler.

Typically you include your total income from your federal return and that is used to determine the tax rate. You're taxed that rate on the income you received in that state.

Where your domicile state really makes a difference is with income that does not come from a specific state like from an investment account.

I'm going through the domicile/DL/vehicle stuff in Florida right now and it's a pain. I'd recommend getting an account at a mail forwarding service now and start switching everything over so you have enough documents to "prove" your residency.

 

[Bster13]

I have income from at least 3 states every year. You have to file in every state you received income if they have an income tax. I've been using turbo tax for this and it's fine but a hassle because they charge you individually for every state even with the more expensive package. In the past I've used it for my federal taxes then done the states by hand since the forms are usually simpler.

Typically you include your total income from your federal return and that is used to determine the tax rate. You're taxed that rate on the income you received in that state.

Where your domicile state really makes a difference is with income that does not come from a specific state like from an investment account.

I'm going through the domicile/DL/vehicle stuff in Florida right now and it's a pain. I'd recommend getting an account at a mail forwarding service now and start switching everything over so you have enough documents to "prove" your residency.

Yes, I understand to take precaution and check off as many things as you can to "prove" you live in a new state when your old state comes looking for tax money.  But best I can tell, if I no longer rent or own a dwelling in my old state, that goes a long way to saying "hey, I don't live here."