State income taxes

[Neal]

My RV is "garaged" in Prince William county And there is talk that they are trying to do away with the 0% personal property tax exclusion, let's hope this pandemic put that nonsense on the back burner.

 

[MapNerd]

My RV is "garaged" in Prince William county And there is talk that they are trying to do away with the 0% personal property tax exclusion, let's hope this pandemic put that nonsense on the back burner.

They tried. The measure failed after all the boat and RV owners (self included) went ballistic and clogged up the County Supervisors hotlines and showed up to the board meeting.

 

[Neal]

Great to hear!

 

[AlexK]

Thank you ARD! That was helpful.
I'm on the same page with the author - I'd have to file one tax return to my domicile state and one to each state where I lived and worked during the year as a non-resident. And I should be careful and find out upfront how each state determines the residency so that other states don't count me as a resident.

 

[TJ&LadyDi]

Thank you ARD! That was helpful.
I'm on the same page with the author - I'd have to file one tax return to my domicile state and one to each state where I lived and worked during the year as a non-resident. And I should be careful and find out upfront how each state determines the residency so that other states don't count me as a resident.

As I think you are beginning to see, what you propose is not a do-it-yourself project. You need to find an accountant (preferably a CPA) that can work with you in both the planning and tax aspects. A good CPA can provide you with a lot of very useful information to keep you out of trouble rather than to get you out of trouble after the fact. Federal income taxes are the easy part; the different state tax entities are what create the problem.

We have a pretty simple situation with a domicile in Washington state and a temporary residence (with rental property) in Montana. Since Washington has no income tax, we only have to file a state return for Montana. Our CPA has been most helpful in sorting all this out. Yes, it does cost a few bucks to have him do it, but it is money well spent and I know that if issues arise, the CPA can handle them on our behalf. And, that's the reason for a CPA; they can represent you before taxing authorities where most "accountants" cannot and you will have to do that yourself.

You probably get benefits from your employer (health insurance, etc.) but if not, consider setting up a limited liability corporation and have it contract with what is now your employer for the work you do. Payment would go to the LLC in whatever state you set it up in and that would be where it would be taxed. You would be an employee of the LLC working from various "temporary" locations. You would want to run that scenario by a CPA and/or tax attorney (which I am not) to get the details right.

Good luck.

TJ

 

[AlexK]

Thanks a lot TJ, I will definitely speak with a CPA. Although LLC is not an option, CPA may help just with preparing tax returns.
I'm kind of aware of what troubles I can get into preparing taxes myself. I did my taxes for 2 states last year and I had to send amended returns to both. But you know, I'm interested in getting more experienced in stuff like that. I consider it a challenge, not trouble.?

 

[Bigbur53]

Hi,

I'm thinking of going rv full-time. I have a remote job and I pay taxes through my employer. There are some articles about state income tax and domicile vs residence but it does not make sense to me.

Some recommend to establish "state residency" in either Florida or Texas. For me that would be a domicile, not residence. The residence, real residence that matters for income taxes, would be your real location during the year.

Example:
Just to make it easy/crazy, let's assume that in 2019 I lived exactly one month in 12 different states. One of them may or may not be Texas.
What benefits (income tax relief) would I get if I had Texas driver licence and mail address during that year?
I believe the right thing to do would be to file tax returns to 12 states claiming part-year residence regardless of your domicile.

What do you guys think?

Thanks,
Alex.

Only three states require you file income taxes in their state but only if you work in those states for more than two or three weeks. Cr, NY and CA. Hope that helps.

 

[Germanrazor]

The simple answer to your question so you have peace of mind......ask an or your accountant and they will tell you exactly how to work that. Mine does. But I am no on-the road full timer RV person.....yet or if ever. Would I one day move to Florida as I like that state? Possibly. But the RV life for me is just traveling and vacationing as I reside in the loon state of NC under a NUT governor!

 

[Retired]

It is against the law to illegally avoid paying taxes, it is not against the law to legally avoid paying taxes.

That is the first concept to understand.

In your situation, you really have two legal choices: Domicile state or state of residency.

What state issues your vehicle title and tags? Where is your doctor and dentist? What address does your auto insurance use? Where do you vote?

If you truly travel a lot, use Texas or Florida. Swing by once or twice a year and see your doc and dentist, get an eye exam, vote in person or absentee and you are covered.

In our travels we will always use Georgia. We own a home here and will always do all our non-emergency medical care here. Taxes are almost zero once you hit 62 or 65 depending on income.

 

[Joe Hogan]

You might want to ask a CPA. You may want to open this can of worms, but know before you do. There will be a nightmare of book keeping and potential snoopy state auditors for sales tax, use tax, local business fees, etc. calling you after you file taxes in their jurisdictions. We have business interests in three states and it is a PIA.

Multiple State Tax Returns? The Complete Guide for Mobile Workers

quickbooks.intuit.com