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I would set up "residency" in a state with no income tax.
That will have little effect on income earned outside the state, and may cost more in the long run with higher vehicle fees.
I realize "no taxes" attracts some people the way kittens attract little girls and J.Lo's boobs attract little boys, but it's not always a sensible choice.
I have come upon an opportunity for work that requires a lot of traveling. I would be away from home for 3 months at a time and staying in hotels that the company would pay for. I could jump from job site to job site if I so choose and would spend at most a few weeks between hotels.
I'm single, no kids, currently rent, and don't own too many worldly possessions.
I was thinking of getting a van and just living out of the van when not in a hotel. I would save money by not paying rent and I don't want to worry about upkeep on a home when I wouldn't even see it the majority of the year.
The questions is, how/where do I claim income taxes? I believe I need an address, but if I don't want an address then what do I do?
But your employer operates out of a state and may also require you to have at least a mailing address there (don't know). You are an actual salaried employee right? Your salary and other benefits may be influenced by the state the employer is based out of. Plus, they'll be withholding for that state's income tax if there is one. If you don't have any other preference for the location, rent a PO box in the state your employer is operating out of and have your mail forwarded.
Last edited by Parnassia; 05-04-2019 at 04:50 PM..
That will have little effect on income earned outside the state, and may cost more in the long run with higher vehicle fees.
I realize "no taxes" attracts some people the way kittens attract little girls and J.Lo's boobs attract little boys, but it's not always a sensible choice.
I pay 25 bucks per year for my vehicle registration. What's this about kittens and boobs?
Remember the OP asked "Where/How to claim income taxes when living out of a van?"
He didn't ask about vehicle registration fees. In what state would you pay more in vehicle registration for a Van than if you paid State income tax?
I pay 25 bucks per year for my vehicle registration. What's this about kittens and boobs?
Remember the OP asked "Where/How to claim income taxes when living out of a van?"
He didn't ask about vehicle registration fees. In what state would you pay more in vehicle registration for a Van than if you paid State income tax?
The point is that OP will likely be paying state taxes on income anyway, and those same taxes are deductible in the resident state.
Let’s say OP does establish TN residency, but works in MD, IL and FL over the year. Assume OP earns $60k for the periods he works, which is $5k/month. Based on OP working three months in each place, he owes MD $712, he owes IL $742, and FL nothing. Just because he would be a resident of TN doesn’t mean he doesn’t owe MD and IL.
Under your theory he saves about $700 in taxes. He would have had to establish TN residency, which could cost a bit, as it appears you have to have a valid mailing address to do so. Easy if you start in TN, not as easy if you don’t. If he doesn’t, he should probably just claim FL as his resident state.
Let’s keep in mind that most states do have an income tax, so unless OP happens to work in a state with none, he wouldn’t save anything by claiming TN, FL, WA.... residency.
Well, you're going to have to get mail SOMEWHERE. Personally I'd rent a PO Box, and let that be your address of record.
This. You appear to have a normal brick and mortar house. This is a good opportunity to save some money with no rent payment. Especially if you have little or no savings now. Safety is a concern though if you are parking in different places. One tip I heard is using Wal Mart parking lot. Also if parking in a quiet residential area, leave early and move around to avoid being noticed. The police questioning you is likely to happen also in this lifestyle.
I pay 25 bucks per year for my vehicle registration. What's this about kittens and boobs?
I think context speaks for itself.
Quote:
Remember the OP asked "Where/How to claim income taxes when living out of a van?"
He didn't ask about vehicle registration fees. In what state would you pay more in vehicle registration for a Van than if you paid State income tax?
The point is that the OP has many more issues, most of which seem unconsidered, than where to claim/file income taxes. And no-income-tax states often have other pitfalls that negate taxes on what I assume will be modest income, most of it out of state.
This. You appear to have a normal brick and mortar house. This is a good opportunity to save some money with no rent payment. Especially if you have little or no savings now. Safety is a concern though if you are parking in different places. One tip I heard is using Wal Mart parking lot. Also if parking in a quiet residential area, leave early and move around to avoid being noticed. The police questioning you is likely to happen also in this lifestyle.
Good points. There are some definite downsides to living out of a vehicle for weeks at a time. Taking a shower, doing laundry, cooking breakfast all become more difficult.
My brother has a job similar to the OP. He shares an apartment with several roommates. The rent is minimal, but he has a place to keep his stuff and shower between assignments.
OK, so let's say you're arguing that you don't have a residence, so you're trying to say you're a resident of a no-income tax state and you won't have to pay income taxes, right?
That's not how income taxes work. You are taxed at the source.
So you're working for an employer in Georgia, you'll file a non-resident Georgia income tax return - and report all wages you had in Georgia.
You'll get hit with income taxes at the state level.
And because you're working in multiple states, you'll file multiple non-resident income tax returns.
So what do you plan on putting on your income tax return under "address" if you don't have an address?
What address are you going to put on your W-2 form?
And if you think you won't file an income tax return and bail from the tax liability? Nice try. The W-2 wages and bank account interest reported will find its way to the state, who will notice you didn't file a tax return and send a bill - and snag any Federal income tax refunds to pay off your unpaid taxes.
Yay! You won the lottery in any state, and the prize is over $600. Oops, you didn't pay your taxes and they snag your prize.
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