Proving you "live" in your state of domicile.

[Bster13]

For state income tax reasons, I plan to establish my domicile in Florida.  I know a lot of fulltimers choose Florida, get an address setup and forward mailed and on the road the road they go fulltime, but for my situation, I may be spending up to 6mo in another state that has state income tax.  

In that taxable state, I'd be living with a friend and paying her rent under the table so no utility bill or proof of rent paid, but I'd certainly be "leaving a trail" of living in this other taxable state in that I'd be using my credit card there a lot if audited.

Does anyone have experience with this?  Are there Dos and Don'ts?  I'm not fully sure how to stay "qualified" as a resident of Florida while I spend 1/2 to a majority of the year in a taxable state.

Thanks!

 

[Almost There]

I used to keep a 'Florida Residency' but spent at least 6 months of the year out of state. I never once had any problems.

These things all qualify as 'proof of residency' -

Where you bank
where your credit card companies has you on record
where your insurance company has you on record for their insurance
where you get your mail
where your health insurance is from
the address on your drivers' license and vehicle tags
the address on your federal tax return

The only time you're likely to run in to a problem is if you're working in the 'other state' and that's because they want their  fair/unfair share of your paycheck.

 

[Bster13]

Good point about if you work in the "other state" as I had planned to.

 

[Optimistic Paranoid]

You didn't say if you were planning on working in that "other" state. That's usually what triggers problems.

Get as much proof of Florida residence as you can.  Not just a Florida Driver's License and Registration.

Register to vote in Florida.  Vote via absentee ballot if you're not actually there on election day.  If you're one of those people who doesn't believe in voting, vote anyway.  Write in Bozo the Clown if you have to.

Get a passport or passport card that shows your Florida address.

Your Federal Income Tax needs to be filed from, and show your Florida Address.  Maybe have a Florida H&R Block file your taxes for you.

Get a Florida CCW if you own a handgun.

Do all of your banking via a Bank or Credit Union in Florida.

Any and all insurance policies - Life, Health, Renters, whatever need to also show your Florida address.

BTW, take a look at this blog post of Bob's concerning state taxes and residency . . .

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

 

[Bster13]

Ok, so probably best not to be making a paycheck in that taxable state if I don't want any troubles. Thanks!

 

[akrvbob]

I don't understand what you are trying to avoid. You will pay income taxes to the other state no matter what, you can't avoid it, you pay tax where you work. But, if they lay you off, you can file for unemployment in either state.

If you are worried they are going to come after you and force you to be a resident of that other state, i think that's extremely unlikely. I don't know, but my guess is it's illegal to do.

It is at least conceivable that they might come after you to register your vehicle in their state, but again, I think that's very unlikely.
Bob

 

[Bster13]

I don't understand what you are trying to avoid. You will pay income taxes to the other state no matter what, you can't avoid it, you pay tax where you work. But, if they lay you off, you can file for unemployment in either state.

If you are worried they are going to come after you and force you to be a resident of that other state, i think that's extremely unlikely. I don't know, but my guess is it's illegal to do.

It is at least conceivable that they might come after you to register your vehicle in their state, but again, I think that's very unlikely.
Bob

Hi Bob,

The reason to move my domicile to florida is to avoid state income taxes.  I agree, if I work in a taxable state, I'll need to pay state income taxes on it and I'm certainly fine with that.  But for retirement dividend and capital gains tax, I'd really like to keep that in Florida where it would not be hit with state income tax as that would be the bulk of my income.  I may need to speak to a tax professional for guidance here, or work a few more years to ensure I never need to work again. Thanks!

 

[TrainChaser]

When in doubt, talk to a tax attorney.

 

[SoulRaven]

This might help: http://www.stateofflorida.com/residency.aspx

 

[ccbreder]

In NJ I don't pay tax on any of my retirement moneys.

 

[bullfrog]

I am an Arizona resident, work and live 6 months in Utah, and receive a pension from the state of Kentucky. I have to pay Utah state taxes and Utah takes a percentage of my Kentucky pension in the form of tax even though Kentucky does not. Be careful what states you work in if you have income from other states.