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Old 06-30-2014, 08:37 PM
 
53 posts, read 84,756 times
Reputation: 20

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I am a recent college grad from the East Coast out here in Michigan until November working for a company located in the DMA. I am wondering if it would be worth it or even possible for me to establish Michigan residency until then?

I ask because I am being charged income taxes in both the state I am from(which are a lot higher then here) and in Michigan as well. In order to eliminate some of that burden I was thinking of changing my residency to MI . Also there is a chance at this time I could be here beyond November as well.

Does this sound fusible? Also would it be legal for me to do this? As I am a full-time resident paying taxes here until at least November of this year.

Thank you! And I look forward to any replies I receive!
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Old 06-30-2014, 09:00 PM
 
Location: Candy Kingdom
5,155 posts, read 4,588,246 times
Reputation: 6629
Not sure about legality, but I would definitely contact someone well versed in it. I would totally do it... but you want to make sure it's legal. I'm looking forward to these responses too!
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Old 06-30-2014, 10:15 PM
 
Location: Midwest transplant
2,050 posts, read 5,913,259 times
Reputation: 1623
Yes, it's possible and it can also be a pain to have to do it again when you move. You would have partial residency in the state in which you were a resident up until you declared MI your resident state, and then if you were to move back to home state or another state, you'd have it again. An accountant should be able to figure out the number of days you were a resident of State A , State B etc. and your taxes are prorated accordingly.

You might want to see if someone in your Human Services or payroll/accounting can help you.
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Old 07-01-2014, 05:03 AM
 
1,648 posts, read 3,252,694 times
Reputation: 1444
If taxes are higher out East, why wouldn't you want to switch licenses? It's usually required within 30 days of moving, though most DMV/Sec of State offices - you just need two bills etc as proof - which you can change online and then print out the same day. I guess the better question is why wouldn't you?
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Old 07-01-2014, 05:11 AM
 
Location: On the Chesapeake
44,883 posts, read 59,869,542 times
Reputation: 60427
It's likely not worth the PITA factor for only a few months. You should be able to claim a tax credit in your home state (place of permanent residency) for the taxes you pay in MI (your current domicile. Residence and domicile are different).

Just the costs incurred if you're switching car licenses (transfer and titling taxes) would make likely make it a wash at best, or even more expensive.
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Old 07-01-2014, 05:46 AM
 
Location: On the brink of WWIII
21,088 posts, read 29,046,806 times
Reputation: 7812
Won't you pay those East Coast Taxes when you file? Then you will get "credit for taxes paid here in Michigan.

How is the East Coast State getting income tax now?
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Old 07-02-2014, 11:40 AM
 
5 posts, read 4,759 times
Reputation: 15
Car insurance rates are a killer -- I think about the highest in the uSA. Typically around $8-900 a year for minimum legal liability, with a good driving record. But on the plus side, no annual vehicle inspection required.
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Old 07-04-2014, 09:29 PM
 
Location: Lansing, MI
2,948 posts, read 6,994,364 times
Reputation: 3271
Get quotes from auto insurance in MI to see how the cost compares to what you're paying. Getting a vehicle plated in MI is fairly inexpensive. No inspection, just cost to transfer title, new plate, registration fee. You can find those details on the Sec of State site.

Then, determine what the cost of transferring all of that back to your home state once you leave.

Add the 2 costs up. Compare to what you're paying out in taxes, which one is cheaper?

(or, better said, how many months of being a MI resident do you have to complete to break even?)
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