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Old 06-23-2012, 06:28 PM
 
Location: Whidbey Island, WA
12,270 posts, read 11,317,584 times
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As I approach the retirement age I am considering doing the following. I own a home in Alaska which is considerably more favorable than California where I moved to 1.5 years ago. I can work part time in either state. My question therefore is:

How is a tax "home" determined for purposes of state and federal tax?

If I am employed by a California company I must pay tax to the state however if I travel (R.N.) from Alaska to take a part time job here in California what are impediments which I may encounter?

If I own a home in both states how does that effect the equation if at all?

Thanks if you know the answers!
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Old 06-23-2012, 06:56 PM
 
Location: The Triad (NC)
28,484 posts, read 62,101,894 times
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Quote:
Originally Posted by AADAD View Post
I own a home in Alaska which is considerably more favorable than California...
If I own a home in both states how does that effect the equation if at all?
domicile is pretty simple stuff.
property, drivers license, voting, insurance... and job.

Don't complicate it.
Limit your working to your time in AK.
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Old 06-23-2012, 06:59 PM
 
Location: Tucson AZ & Leipzig, Germany
2,369 posts, read 7,758,843 times
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California will require you to pay CA state income tax if you work a part time job in CA for a company in CA. It does not matter what state you consider as a permanent residence or where you own a home. You could live 365 days a year in a state where they have no state income tax (like AK or NV), but if you earn income in California during the work day and get paid by a company doing business in CA, you will owe CA state income tax on that income earned in CA, even if it is for a relatively short time period. You can file a non-resident CA income tax form if your permanent legal address is in Alaska while working in CA.

Most states that have income tax will follow a similar rule. For example, I lived for several years in Auburn, Alabama but commuted about 20 miles to a job across the state line in Georgia. My income was earned in Georgia for a Georgia company, so I had to file a non-resident tax form and pay Georgia state income tax. Alabama did not tax me on income earned in Georgia, but Alabama taxed me on bank interest, stock dividends and capital gains from investments while my permanent residence was in Alabama.

,
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Old 06-23-2012, 07:19 PM
 
Location: Whidbey Island, WA
12,270 posts, read 11,317,584 times
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Quote:
Originally Posted by MrRational View Post
domicile is pretty simple stuff.
property, drivers license, voting, insurance... and job.

Don't complicate it.
Limit your working to your time in AK.
Thanks.
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Old 06-25-2012, 08:11 PM
 
Location: Eastern Washington
14,217 posts, read 44,878,144 times
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If I understand the original post, you work as an RN, right? If so, I would think you could find work as easily if not easier in AK than in CA.

IMHO Cali is turning into a financial basket case, I'd limit my connections as much as I could. That and if you don't own a home there, you will have to rent a place to stay, and CA rents are high.
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Old 06-25-2012, 08:35 PM
 
833 posts, read 1,470,817 times
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Many states give a property tax break on your house if you use it as your primary residence.

You can't get the tax break in 2 states on 2 different houses ,however.
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Old 06-26-2012, 11:02 AM
 
Location: Whidbey Island, WA
12,270 posts, read 11,317,584 times
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Quote:
Originally Posted by M3 Mitch View Post
If I understand the original post, you work as an RN, right? If so, I would think you could find work as easily if not easier in AK than in CA.

IMHO Cali is turning into a financial basket case, I'd limit my connections as much as I could. That and if you don't own a home there, you will have to rent a place to stay, and CA rents are high.
Yes, easy to find p/t work or daily work which will augment social security. If I travel from my home state I can work in Cali and not pay the state tax as it is considered a travel assignment. have to see if that still works if I own a home here as well. probably not.
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Old 06-27-2012, 08:43 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,537 posts, read 39,914,033 times
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Quote:
Originally Posted by AADAD View Post
Yes, easy to find p/t work or daily work which will augment social security. If I travel from my home state I can work in Cali and not pay the state tax as it is considered a travel assignment. have to see if that still works if I own a home here as well. probably not.
Read the fine print and deal with your contract agency / someone well vs. in COntract employment law IN CA.

I can certainly understand your issue and DESIRE to live a portion of the time in CA ...I transited SFO today coming home from Thailand... it was beautiful, as usual).

CHECK the CA Domicile Laws, and BE SURE to arrange to KEEP your Domicile in AK (Tho SD is another 'income-tax-free' state with WAY LIBERAL Domicile law (ONE NIght / YR) !!!

I will guess.... CA and / or AK will have a rule that states you MUST reside XXX days IN state, and the inverse... IF you reside more than xxx days within this state you will trip a default and MUST DECLARE DOMICILE in regard to income earned with in the state.

Most of my alien contract work gigs REQUIRE I pay State income tax on ANY income generated while residing OR PHYSICALLY WORKING WITHIN the bounds of the state. There MAY be some 'travel - Assignment' limitations, but I will Guess they will be less than 30 days in a row, AND less than XXX days total / yr.


DO NOT EXCEED these thresh-holds, or your DOMICILE CAN BE RULED to be in a HIGH TAX STATE (i.e. CA / OR) and 100% of your income will be taxed at STATE rates !!! and payable to the STATE (investments / AK, NV, FL, TX, TN, NH, WA, SD EARNED income).

I will BET there are LOTS of NV residents & CA employees crossing from CA into NV monthly (kinda like getting your Visa Stamped every 30 days) if the 'travel assignment' option is valid. BE SURE to comply for record keeping (you may have to PROVE you were out of CA for a certain period and RESIDING in your 'Domicile state...' not just visiting NV for a weekend').

BE SURE to keep your utility bills, groceries, car, and voter Registrations ACTIVE and in AK (or another income tax free state). For CA work, I would likely chose a nice spot with a mailbox near Reno, NV. You can quickly drive there from Sacramento.

These are dated but might help
https://www.ftb.ca.gov/aboutFTB/manu.../rstm/2000.pdf
http://www.caltaxcpa.com/free/CA_residency_memo.pdf

:Looks to be 9 mo. for CA (many states are 6+ 1 day)

DO NOT Register a CAR, or OWN property in CA or your intent will be DECLARED for you.
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Old 06-27-2012, 10:03 PM
 
Location: Prescott Valley,az summer/east valley Az winter
2,042 posts, read 3,626,610 times
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you pay state taxes in the income you earn in that state~ consider the major league sports jock who must pay taxes in a lot of states every year~ ownership of a house in a state does NOT make you a state resident~ I own property in each of 4 states. Do NOT vote in a state you are not trying to claim residence in. Would suggest contacting a good CPA to get the answer to your tax liabilities~ at least once. His answers may guide you more than you realize.
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Old 06-28-2012, 02:58 AM
 
71,466 posts, read 71,652,652 times
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Your primary residence is the state you spend more than 180 days a year.

Having established that it now depends on which states you earn an income in and the agreement the states have.

As an example if you live in pa but earn an income in new york you pay your taxes to ny first and then take them as credit against your pa taxes.

If nothing is left than pa gets nothing.

Pa has a different agreement with maryland . You pay pa taxes first even if you earn an income in maryland .
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