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Old 06-26-2010, 08:07 AM
 
Location: Prescott Valley, AZ
131 posts, read 295,792 times
Reputation: 65

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Hi, I couldn't decide where to post this question since I don't see a health insurance-specific forum so I hope this is alright. Moderators, please feel free to relocate this thread if you see fit.

My dilemma: My wife and I moved a year ago from Northern Arizona to Kansas (near Kansas City). We moved to help with our new granddaughter who has severe health problems. We rent an apartment here in Kansas, and we both work here too. My problem is that I still claim Arizona residency and we still maintain our house there. I travel there once a month for a few days to check on my mother who has Alzheimer's and lives in a care home. Also, I check on the house, dust, vacuum, water the plants, etc. (we don't rent it out).

A few years ago I applied for a private policy from Blue Cross Blue Shield of Arizona - and then 6 months later I was diagnosed with Type 1 diabetes! The upshot is that I'm sort of trapped in Arizona. I have to maintain legal residency in Arizona or I'll have to re-apply for health insurance here in Kansas and you all know how the pre-existing condition thing is...the cost is unaffordable! OK, so that's a HUGE reason we maintain our old house in Arizona. Our mortgage payment is really cheap because we paid almost all cash for the house, so for around $330 a month (our mortgage payment) I can maintain residency legally (remember I'm there each and every month) and maintain my insurance in Kansas.

My CPA tells me that eventually I'll run into a problem because it's going to be hard to say I'm an Arizona resident when all of my pay stubs show Kansas income.

Can anyone here tell me the type of person I need to consult with? I can pay a lawyer, I just need to know what TYPE of law specialty. Is there such a thing as "health insurance law"? There's no such thing in my phone book.

Help!
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Old 06-26-2010, 08:52 AM
 
5,092 posts, read 9,601,657 times
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Talk to the folks you do work for and see if they would consider a 1099 / Contractor relationship. You can be a contractor based from Arizona, and also take the expenses for maintaining the Kansas location.

Maybe even split the billing as a Per Diem / Expenses.

Since you are receiving no benefit package from the present Kansas working "employment" relationship (is that correct?) there is no gain for you in being an "employee" per se, and it would be a gain for both you and your employer if you were a contractor.
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Old 06-26-2010, 10:06 AM
 
28,383 posts, read 67,919,335 times
Reputation: 18189
Phillip T. Makes a good suggestion, and it also points a possible avenue of legal help. If you make inquiries of attorneys that have experience with independent contractors and their unique benefits situation you are much more likely to find some one with experience in your problem then looking up attorneys that have experience with benefits who mostly work for corporate side clients or those that have problems with Social Security...
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Old 06-26-2010, 11:15 AM
 
Location: Prescott Valley, AZ
131 posts, read 295,792 times
Reputation: 65
Quote:
Originally Posted by Philip T View Post
Talk to the folks you do work for and see if they would consider a 1099 / Contractor relationship. You can be a contractor based from Arizona, and also take the expenses for maintaining the Kansas location.

Maybe even split the billing as a Per Diem / Expenses.

Since you are receiving no benefit package from the present Kansas working "employment" relationship (is that correct?) there is no gain for you in being an "employee" per se, and it would be a gain for both you and your employer if you were a contractor.
Hmm, very interesting - seems like that would further identify myself as an Arizona resident (which I am). Phillip, you are correct in guessing that I receive no benefit package from my Kansas employer - I only work part-time, just a good hourly wage. I'm tempted to ask what exactly the "gain" you mentioned would be for me and my employer if I was an employer, but I think I'd rather ask a lawyer once I find one. Unless you are one and can elucidate?

Quote:
Originally Posted by chet everett View Post
Phillip T. Makes a good suggestion, and it also points a possible avenue of legal help. If you make inquiries of attorneys that have experience with independent contractors and their unique benefits situation you are much more likely to find some one with experience in your problem then looking up attorneys that have experience with benefits who mostly work for corporate side clients or those that have problems with Social Security...
Hi Chet, thanks for the input - so what kind of attorney are we talking about? Tax attorney?
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Old 06-26-2010, 02:15 PM
 
5,092 posts, read 9,601,657 times
Reputation: 3941
Quote:
Originally Posted by cazboy View Post
Hmm, very interesting - seems like that would further identify myself as an Arizona resident (which I am).
Absolutely. Keep your Drivers License, Vehicle Registration, Voter Registration and Bank Accounts all based in AZ to further your claim -- if challenged. But overall, it should not be an issue. Just keep things looking like what The Man expects to see. The appearance of being wrong is wrong.


Quote:
Phillip, you are correct in guessing that I receive no benefit package from my Kansas employer - I only work part-time, just a good hourly wage.
Just a reasoned guess since you were concerned about the existing insurance. If there were a benefit package at the Kansas employer, you would not be concerned of this problem, at all?

Quote:
I'm tempted to ask what exactly the "gain" you mentioned would be for me and my employer if I was an employer, but I think I'd rather ask a lawyer once I find one. Unless you are one and can elucidate?
Generally do my own lawyering Pro Se -- kind of fun -- my real bragging rights are that I beat Harriet Miers (dingbat) and her "girls" in a two-year case.

jmho -- In real practice, real practice lawyers tend to be pretty silly. All about Billable Hours. I have a couple on retainer, but they charge more than my own bill out rate, so it generally makes better economic sense to just do things myself. But jumping past all that . . .

Your real interest is in what the IRS says -- not so much what a lawyer says. Simple reading, read it yourself and see for yourself. If a competent attorney agrees with what you find, that is all the better.

This the form method the IRS uses to determine employee v. contractor status, look it over and you can sort of "see" what the right answers should be. (Do Not Send In It.) Just make sure you and the company which would now be your "customer" comply with the intent.

http://www.irs.gov/pub/irs-pdf/fss8.pdf

The savings begin in Social Security / FICA -- for both you and the present employer. Presently your employer pays 1/2 and you pay the other half -- and once it is paid is, it is gone money -- without recourse.

SS/FICA withholding disappears as a contractor for both of you. It will reappear again in your SE (self-employment) tax forms, but a Much Lower number after have your now deductible business expenses from your Schedule C. Should also save your employer additionally on unemployment and other local taxes that may exist.

Also look into what AZ or KS taxes may appear or disappear based on this relationship. All 50 states have differing laws and you will need to know the ones that apply to you to optimize the game.
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Old 06-27-2010, 12:10 PM
 
Location: Prescott Valley, AZ
131 posts, read 295,792 times
Reputation: 65
Quote:
Originally Posted by Philip T View Post
If there were a benefit package at the Kansas employer, you would not be concerned of this problem, at all?
Yes, I would be concerned so long as it posed a possible legal conflict down the road.

Thanks so much Philip, I truly appreciate your insights, particularly the point about satisfying the IRS rather than some lawyer.

You've given me some homework to look at - perhaps I'll resurrect this thread if I have any further questions, but for now I think I'll run with what I have to work with.
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