[LinP3] Re: US state of residence

If you have income from a state that has an income tax you can pay the tax. I am from Indiana but have lived in several States for work.
When I lived in RP I had to pay Indiana income tax because I still maintained a permanent residence there and my investment income came from Indiana. I rented my house out also. Maintained my Indiana drivers license etc.

When I lived and worked in OK, TX, IL, Co I had to file a part year tax return. In TX , CO, after I had been there a year, I had gotten drivers license and so was considered a full time resident. No Indiana income, no tax.

You can own a home anywhere you want. That does not determine your tax status.

I am in Washington now and my first year I had to file a Indiana part year resident tax form. Now I do not have to. I still own a home there but I do not have any taxable income from Indiana. I leave my house empty. I do not rent it any longer.
It usually depends on where your income is coming from.

It is a good idea to check both the dept of revenue and the motor vehicle dept in your state. You can usually find the info on thee websites.

In Indiana if you have any income from Indiana sources they will try to force you to be a Indiana resident so they can get the income tax but if you have established residency in another state and spend more time there then in Indiana they cant push the issue very far as far as having vehicles registered etc.Some states if you use state services such as voting etc, you are considered a resident.

There first thing I do is check the residency requirements when I move to a new state for work.

However If I stay here in WA. till I retire, I would move back to Indiana and became a resident there then I would be liable for any tax on income.
You need to look into the residency requirement for your state before you retire.
This is info I came up with in my moving around for work. As I said check your state requirements before you retire to be sure of your status.

If I decide to live in RP after I retire, I would cut all ties with the state and as long as my income did not come from IN I would not have to pay any state income tax. But I would not be able to vote etc.

This info may not be accurate for your situation or state so just get on the web and look around to see what is required
I believe lot depend on if and where you wanted to keep a drivers license etc.. most states you have to be a resident to get a drivers license etc. also.

Take care
Robert


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