Stateside Residency and taxes

[GWG]

Wasn\'t sure where to put this one.

I am planning to change my stateside residency to keep from paying state taxes for the rest of my life while living in the Philippines.
I\'m thinking of changing to a Florida resident.

Has anyone ever done this and if so, could you please tell me what\'s required.
How long do I have to live there ect..

Any info would be very helpful.

Thanks,

[RUFUS]

I think all you would need is an address, bank account and a drivers license from Florida.

Go rent a small/cheap place in some little town open up a bank account and get a DL, maybe saving your utilities bills.  Then just hang out there as long as you wish to get your ducks in a row before you move to the Philippines.

BAM!!! you are a Floridian.

[tom.inbigdtexas]

planning to change my stateside residenc
could you please tell me what\'s required.
How long do I have to live there ect..

GWG,

In my work, once or twice a year I would need to establish someones residency in a different State for legal jurisdictional purposes.  It is really very simple.

\"Residency\" is a matter of subjective intent of the person involved.  In other words, if you can establish that it is your \"intent\" to be a resident of a particular State, then you are a resident of that state.  So, the question is, what will suffice as \"evidence\" of your intent.

You can claim a hotel room, a mobile home, a friend or relatives house... just about anywhere you could have a legal right to stay, as the address of your \"residence.\"  Then...

Change your driver\'s license, voter\'s registration, a few credit cards, to that address; Open a bank account using that address; put that address in your Will; Change a life insurance policy to that address; Change your auto registration to that address; File a tax return using that address; etc.,

You certainly don\'t need to do all of this... but change whatever is convenient to the address in that State, the more the better if the issue is ever challenged.  I have had clients get by on as little as a change of driver\'s licence and a USPS change of address request.

BTW - Texas has no State income tax, and to the extent if might be of concern to you, is one of the few remaining \"homestead\" States, wages cannot be garnished, and it has fairly liberal property exemption statutes.

Tom in Big D

     

[GWG]

Thanks Guys!!

Yea, Texas may be the best bet.
Tennessee is another option but not sure if their a \"homestead\" state or not.
I just know I can\'t continue to pay state taxes to a state I will never live in again, it makes me sick!
It\'s bad enough paying Fed Taxes.

I just wish I would have taken care of this before I left.....word to the wise for all those planning to relocate.

Salamat,
Ingat,
GWG
 

[drpack]

Maybe I\'m missing something here? If you live in the Philippines full time why would u need to have any state as a Residency?  I am currently living in Florida and have been a resident for most of my life.  When I sale my home though. I doubt I can continue to use the mailing address.  I assume the IRS will consider my residence Florida until I tell them otherwise.

[aerosick]

Maybe I\'m missing something here? If you live in the Philippines full time why would u need to have any state as a Residency?  I am currently living in Florida and have been a resident for most of my life.  When I sale my home though. I doubt I can continue to use the mailing address.  I assume the IRS will consider my residence Florida until I tell them otherwise.

It\'s the State income tax that will bite you. I live in CA and will always have to pay CA Income Tax until I prove to them that I moved to another state.

Billy

[Gray Wolf]

Even when you tell them otherwise, Florida will still be your US home of record.  Since FL has no personal income tax, you\'ll be fine.  In fact I\'m considering moving there for 6 months before I relocate permanently just to establish FL as my home of record and take advantage of the lack of personal income tax.  Just one less headache after I move!   

For the record, seven states have no state income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Two others, New Hampshire and Tennessee, tax only dividend and interest income.

Maybe I\'m missing something here? If you live in the Philippines full time why would u need to have any state as a Residency?  I am currently living in Florida and have been a resident for most of my life.  When I sale my home though. I doubt I can continue to use the mailing address.  I assume the IRS will consider my residence Florida until I tell them otherwise.

[RUFUS]

Death & Taxes...

[c_a_p_t_a_i_n_r_o_n]

Death & Taxes...

Oh.....I thought it was Death & TEXAS 

[tom.inbigdtexas]

Even when you tell them otherwise, Florida will still be your U.S. home of record. 

Gray Wolf is right.

Further, as long as you are a U.S. citizen, you will be subject to U.S. laws regard taxation on any income, including passive income, that you earn anywhere in the world, and your U.S. residency will be considered your last known State residency prior to leaving the U.S. 

Yep, its death and taxes, even if you are from Texas.

Tom in Big D

[Nashkat]

  Ok, I\'ve read what everyone has to say, but bottom line....what do I need to do so as to not pay US taxes and Philippine taxes for the rest of my life? Thanks!!! 

[aerosick]

Ok, I\'ve read what everyone has to say, but bottom line....what do I need to do so as to not pay US taxes and Philippine taxes for the rest of my life? Thanks!!! 

US taxes go on forever no matter where you live. Philippine taxes? Just don\'t work there...

Billy

[tom.inbigdtexas]

Ok, I\'ve read what everyone has to say, but bottom line....what do I need to do so as to not pay US taxes and Philippine taxes for the rest of my life? Thanks!!! 

Bottom line - have no active or passive income, own no real or personal property, live off accumulated after-tax money from a non-interest bearing account and spend it only on items that are exempt from sales tax.

Tom in big D

[Lee2]

Ok, I\'ve read what everyone has to say, but bottom line....what do I need to do so as to not pay US taxes and Philippine taxes for the rest of my life? Thanks!!! 

The US taxes are going to depend on your financial situation. In other words, if you earn less than the minimum to have to pay taxes in the US, then you will not have to pay any. Many of the people who are on Social Security alone do not have to file taxes because their income is below their deductions. So the only way might be if your income is basically from Social Security and the total falls below the amount that you are required to file taxes. There are probably a number of other ways, like investing all your money in tax free bonds, or moving all your money, of course assuming you have some, to the Philippines, both IMO would not be the smart thing to do unless maybe you invested your money into something that you could rent out in the Philippines such as condos and then you would have to pay Philippine taxes as well as paying taxes that we all pay while in the Philippines, Value Added Tax, VAT and that is on all savings interest earned in banks and almost all things you buy, so as others have said, you will probably have to pay taxes in the US for the rest of your life unless your financial situation does not require it and anyone who lives or visits the Philippines and spends any money on life\'s necessities, pays taxes one way or the other IMO.

[suzukig1]

I am a permanent resident of California.  I was on an international assignment in the Philippines from June 2007 - June 2009.  I was being paid by a U.S. company but earning that money for work in the RP.  So I have to pay taxes in the RP.  (But only on money earned in the RP.  Money I earn in the U.S., investments, etc. doesn\'t get taxed n the RP.)  For 2008 I was in California for only about 2 weeks.  I didn\'t pay any California state taxes for 2008.  (Filed a return but everything withheld came back.)  As long as I wasn\'t in the state for the minimum time (it\'s either 30 days or 45 days) I don\'t pay taxes in California.  Over that time limit and you have to pay California state tax.  For federal tax there is an $80,000 exclusion on foreign earned income if you are a resident of a foreign country.  Above $80,000 you get taxed in both countries (but there may be credits that carry over to the following year).  I don\'t do my own taxes because my company pays KPMG to do my taxes.