Taxes and Legal Address - New Hampshire (sales, apartment)

[SAABseanSCANIA]

Hi guys!

New here in Alabama. I'm from New England and I just accepted a job back there; god, the family is THRILLED! I currently live down in Daphne, Alabama and I will be keeping that house and moving NORTH!

My primary question is regarding a legal address change. My new employer will be in New Hampshire. I plan on purchasing another house ASAP upon starting but I will most likely be "physically" living in Massachusetts with my fiance's father for the time being. Prior to moving overseas (then to alabama), my legal address was (the same address considered) in New Hampshire.

THE BIG QUESTION IS: can I change my legal address (Mail, DMV, Work) back to my friend's house? I'm quite sure he wouldn't mind as we used to live together anyways. Being as I used to live there, I don't think there were any implications with me having my legal address there; meaning having any affect on his taxes. He's my best bud and I wouldn't want to hinder him in any way legally.

I'm not trying to circumvent any legality as I will be purchasing in New Hampshire as soon as I can. I will just be laying my head with my fiance in MA during the evenings. I'm trying to avoid having to change address, driver's license, plates, etc. to Mass then possibly a MONTH later back to New Hampshire. Of course there's the question of the income tax difference between MA and NH, but it should be negligible in such a short time.

Any help would be certainly appreciated. I'm sure it's been done before. I maintained my New Hampshire address while living/employed in TX, so I don't know if there is a difference; although I own another home now in AL.

Thanks,
Sean

[SuperSparkle928]

Originally Posted by SAABseanSCANIA

Hi guys!

New here in Alabama. I'm from New England and I just accepted a job back there; god, the family is THRILLED! I currently live down in Daphne, Alabama and I will be keeping that house and moving NORTH!

My primary question is regarding a legal address change. My new employer will be in New Hampshire. I plan on purchasing another house ASAP upon starting but I will most likely be "physically" living in Massachusetts with my fiance's father for the time being. Prior to moving overseas (then to alabama), my legal address was (the same address considered) in New Hampshire.

THE BIG QUESTION IS: can I change my legal address (Mail, DMV, Work) back to my friend's house? I'm quite sure he wouldn't mind as we used to live together anyways. Being as I used to live there, I don't think there were any implications with me having my legal address there; meaning having any affect on his taxes. He's my best bud and I wouldn't want to hinder him in any way legally.

I'm not trying to circumvent any legality as I will be purchasing in New Hampshire as soon as I can. I will just be laying my head with my fiance in MA during the evenings. I'm trying to avoid having to change address, driver's license, plates, etc. to Mass then possibly a MONTH later back to New Hampshire. Of course there's the question of the income tax difference between MA and NH, but it should be negligible in such a short time.

Any help would be certainly appreciated. I'm sure it's been done before. I maintained my New Hampshire address while living/employed in TX, so I don't know if there is a difference; although I own another home now in AL.

Thanks,
Sean

Not sure if I follow this correctly.
I wouldn't change my legal address to MA. (I would put it in NH)
Things like license plates, dog licenses, etc will have to be changed within (if I recall correctly) 30 days in NH, but, who cares, I took 2 years.
To simplify the complexity, I set up a P.O. box for all my mail and things. No one even knew where I lived for 2 years (and now they have no idea).

The laws are stated as: (this is old, but still applicable)

TIR 95-7: Change in the Definition of "Resident" for Massachusetts Income Tax Purposes - Massachusetts Department of Revenue - Mass.Gov

I think that you are only considered a MA resident if you 'live' there for 183 days or more. Don't worry about it.

[SAABseanSCANIA]

Originally Posted by SuperSparkle928

Not sure if I follow this correctly.
I wouldn't change my legal address to MA. (I would put it in NH)
Things like license plates, dog licenses, etc will have to be changed within (if I recall correctly) 30 days in NH, but, who cares, I took 2 years.
To simplify the complexity, I set up a P.O. box for all my mail and things. No one even knew where I lived for 2 years (and now they have no idea).

The laws are stated as: (this is old, but still applicable)

TIR 95-7: Change in the Definition of "Resident" for Massachusetts Income Tax Purposes - Massachusetts Department of Revenue - Mass.Gov

I think that you are only considered a MA resident if you 'live' there for 183 days or more. Don't worry about it.

So ideally I would change my address to New Hampshire prior to even starting the new job (a week before during the big move). It will make things easier come tax time anyways having that W-2 all coming from the same state. Is this roughly what you are saying?

I agree with the above because the "residence" in massachusetts is only a brief hiatus during the transition; only for the sake of FREE. Ultimately I'll be in New Hampshire anyways. I was thinking along these lines because I'd rather just claim legal residence in NH right from the start since I will end up there anyways; less to change over, simply a change of address and a sticker on my license. Also, I'd like to change it from Alabama ASAP because they have income tax there too and I'm changing my homestead from the house there; why pay the higher property taxes if I still have to pay the income tax? No.

I'm sure i'm well within the law doing it but I think the question still remains are there any effects on his taxes by doing so?

[SuperSparkle928]

Originally Posted by SAABseanSCANIA

So ideally I would change my address to New Hampshire prior to even starting the new job (a week before during the big move). It will make things easier come tax time anyways having that W-2 all coming from the same state. Is this roughly what you are saying?

I agree with the above because the "residence" in massachusetts is only a brief hiatus during the transition; only for the sake of FREE. Ultimately I'll be in New Hampshire anyways. I was thinking along these lines because I'd rather just claim legal residence in NH right from the start since I will end up there anyways; less to change over, simply a change of address and a sticker on my license. Also, I'd like to change it from Alabama ASAP because they have income tax there too and I'm changing my homestead from the house there; why pay the higher property taxes if I still have to pay the income tax? No.

I'm sure i'm well within the law doing it but I think the question still remains are there any effects on his taxes by doing so?

Personally, I would just change to NH (just my opinion, and I am no tax lawyer)... Not sure if you can avoid income tax there for income that was earned when you were a resident there. If the income is generated in NH, I would change over ASAP, so all the then-received income is based on a NH resident.
You may end up having to file more than one state income tax if you earned anything while in AL (I do three).

One thing I learned, when working in MA, is that for every day you worked out-of-state, and the headquarters for the company is in some other state, you didn't have to pay MA income tax on the revenue. The biggest scam about MA, is if a performer (say musician or rock star or entertainer) puts on a show in a town/city in MA, they owe taxes on their income for that show. A few entertainers got in a lot of trouble for that.
My motto is "Even if you just drive through MA, you owe tax."

Welcome to NH. You will find people friendly here (for New England).

[steveusaf]

I'd do it if I were you.

I have my in-laws address in NH as my legal address. I came from NH into the military, but of course my address went away as soon as I moved out of my apartment before Basic. I just picked up the in-laws address to keep my NH residency with a valid address.

Shouldn't be too much different using your friends address. Pls don't sue me if they come after you though....

[GotBackHome]

Iv'e been dealing with the plates issue, and was just discussing it with the fine lady at the PO. When you register your car with your town clerk, they will give you temp plates and the state will mail you your finals (btw: same with licenses- you walk out iwth a temp card and they mail the final drivers license). They will not forward the plates, it comes with a 'return with corrected address' thing so the PO will send them back if there is no place to deliver them. probably the same with the drivers license since that is mailed.

You've got a month or two legally anyway to change those, and frankly with all the people moving around if it took you a few months to get that changed, I doubt any cop is going to get fussed. So unfortunately, you'll have to wait on that until you move in and have a permanent address you receive mail at. I was bummed.

[SuperSparkle928]

Originally Posted by WannaComeHome

Iv'e been dealing with the plates issue, and was just discussing it with the fine lady at the PO. When you register your car with your town clerk, they will give you temp plates and the state will mail you your finals (btw: same with licenses- you walk out iwth a temp card and they mail the final drivers license). They will not forward the plates, it comes with a 'return with corrected address' thing so the PO will send them back if there is no place to deliver them. probably the same with the drivers license since that is mailed.

You've got a month or two legally anyway to change those, and frankly with all the people moving around if it took you a few months to get that changed, I doubt any cop is going to get fussed. So unfortunately, you'll have to wait on that until you move in and have a permanent address you receive mail at. I was bummed.

Umm.... it is called a 'P.O. Box'. Been there, done that, and still doing that. If you looked at my driver's license... there is no street address. Just a P.O. Box. The ONLY way the town even knows where I live is because I slipped up and registered my dog (obviously they know the town for vehicle registration).

When you do get the plates, however, you will have to get an inspection sticker once you get here. And you will be thrilled by the excise tax. NOT.

If I recall correctly (it has been a while, so correct me if I am wrong). There is no sales tax on a car purchase in NH, but there is an excise tax, which I believe runs 1.5%, then 1.2%, then 0.9%, then 0.6%, for the first 4 years after the purchase of a new car, and then remains at 0.3% forever every year after that, based upon the original purchase price of the car. So I bought a Porsche, which was $88K in 1988. So forever I will pay $264 a year in excise tax on it.
Compare that to MA: 6.25% sales tax on a new car, but then they depreciate it rather quickly, based on the age of the vehicle. Have a '67 Pro-street car, appraised at $50K. MA looks at it and says "geez, that is a 45 year old car". Excise tax was $7.50.
So, in the long haul, even through people call MA 'Taxachusetts', in terms of property tax, NH has that beat for being expensive.

[unit731]

It's called legal domicle.

You can claim your domicle anywhere you live. You need a physical address.

In many states you have 30 days to register (tags) your car in the state you reside in.

Legally, NH requires one to reside in NH 180 days plus one to claim residency. Working overseas or military probably exempt.

There is a history of conflict between NH and Massachusetts regarding motor vehicle registrations (plates/tags).

People do own more or reside in more than one home. Winter/Summer residents. Only one can be their legal domicle. Folks pick one mostly for tax purposes.

If you have a friend or relative that will allow you to claim legal domicle in NH then take that. You probably should but don't have to get a NH drivers license.

Warning. Massachusetts gets quite upset if they see a NH registered car in a drivway over a longer period of time.

[SuperSparkle928]

Originally Posted by unit731

It's called legal domicle.

You can claim your domicle anywhere you live. You need a physical address.

Interesting. I only have a PO Box as my domicile (and yes, I file taxes, and register cars and do all the legal stuff I need to). (Though my dog does have a legal address).

In many states you have 30 days to register (tags) your car in the state you reside in.

Though you can also register it before you move there (meeting the legal timeframes as you stated.)

Legally, NH requires one to reside in NH 180 days plus one to claim residency. Working overseas or military probably exempt.

Interesting. When I moved to the state, I registered the following day. Couldn't wait to be free from MA. Next move was to 'disappear'.

There is a history of conflict between NH and Massachusetts regarding motor vehicle registrations (plates/tags).

Yup. Used to be in the paper every couple of days. Can't use the term we use for MA residents, as I will get flagged.

People do own more or reside in more than one home. Winter/Summer residents. Only one can be their legal domicle. Folks pick one mostly for tax purposes.

Also agree. Thus, my domicile is NH. There are rules in other states, such as MA... if you 'live' more than 183 days in MA, they consider you a resident.

If you have a friend or relative that will allow you to claim legal domicle in NH then take that. You probably should but don't have to get a NH drivers license.

If NH is your legal domicile, by law you have to get a NH driver's license (or not have one at all). Been there, done that.

Warning. Massachusetts gets quite upset if they see a NH registered car in a drivway over a longer period of time.

You got that right. They were doing stings on people who registered their cars in NH, but lived in MA.
MA and NH aren't the 'best of friends'. When MA asked NH to supply a list of all the cars registered in NH (to catch the MA residents), NH told MA where to stick it.

Mine in red, as usual.

[unit731]

"You can claim your domicle anywhere you live. You need a physical address.

Interesting. I only have a PO Box as my domicile (and yes, I file taxes, and register cars and do all the legal stuff I need to). (Though my dog does have a legal address)."

You do have to have a street address. Somewhere. I use a PO Box for all state and federal documents. But the town clerk does ask for a physical address. Same goes true for voting. Same is true for federal income tax.

Off topic. The US Postal Service does require a street address for application for a PO Box. Also the Post Office obtains information about who lives where and sends all to Homeland Security directly or indirectly. After Ted Kasinsky - no more living in the woods with no house number.

Although I know little about what homeless folks do.

One does not need a NH drivers license to obtain a motor vehicle registration.