Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I will be moving to a new home in Arizona from Iowa around or about 10/1/2019. My actual retirement status from my employer in Nebraska will begin around 2/1/2020. Yes, I lived in Iowa and worked in Nebraska.
I would like to not officially become a permanent resident until 1/1/2020 if at all possible.
I will not meet any of the conditions below --
You work in Arizona (other than for seasonal agricultural work).
You are registered to vote in Arizona.
You place children in school without paying the tuition rate of a nonresident.
You have a business with an office in Arizona that bases and operates vehicles in this state.
You obtain a state license or pay school tuition fees at the same rate as an Arizona resident.
You have a business that operates vehicles to transport goods or passengers within Arizona. You remain in Arizona for a total of seven months or more during any calendar year, regardless of your permanent residence.
Out-of-state students enrolled with seven or more semester hours, are not considered Arizona residents, regardless of employment.
Since I will not be doing any of the statements above, I feel that I would be ok not registering my car, not registering to vote and not changing my official address until after 1/1/2020. I was thinking of just doing a vacation forward on my mail until 1/1/2020. Does that sound reasonable, or am I skirting any laws? I will actually still be earning monthly income from my employer back in Nebraska through at least 2/1/2020 because of annual/sick/FMLA/sick bank leave that was available to me. I am not planning to change my address with my employer until after 1/1/2020.
I will not have an actual address in Iowa after 10/1/2019 if that is an issue.
I will be moving to a new home in Arizona from Iowa around or about 10/1/2019. My actual retirement status from my employer in Nebraska will begin around 2/1/2020.
OP, the first thing that comes to my mind is the tax implications. It's possible that in 2020, you will need to pay estimated federal taxes on your retirement income (per a new law), and the state(s) may want a cut, as well. I know Iowa billed me for all of 2013, even though I was only here for four months, and I had to show them my OH state and federal income tax forms to prove that I didn't owe IA taxes for the entire year.
It might be possible that Nebraska, Iowa, and (later) AZ might want some of that money.
My recommendation is to stay on top of the tax laws and make informed choices. If you are "on vacation" for 4 months (10/1 - 2/1), can you prove that? You may still owe Iowa taxes if you can't prove that you didn't live here.
As for me, I've always established residency within the required time limits, which has been 30 days so far. It hasn't been worth it to me to be a "ghost resident" because of taxes and because I just didn't have the wherewithal to deal with The Powers That Be if something were to go wrong and they questioned my residency status. I didn't have anyone I trusted in another state to vouch for me.
Your millage will vary! Everyone's situation is different.
Bank accounts are through a national bank so there are offices in both Iowa and Arizona, so that doesn't need to change immediately.
I am planning to use ACA for health insurance in 2020 (if that doesn't get screwed up) through the AZ state website and can start that 10/2019 if need be. I have an individual plan in Iowa but for peace of mind will probably change to ACA immediately to avoid any issues there with the move for Oct/Nov/Dec of 2019. Despite the fact that my Iowa based individual plan is cheaper and better coverage, ugh. I will be on medicare in 12 months.
I already have the house insured in AZ for the renters in it now.
What if you don't end up liking AZ, and don't want to become a permanent resident?
You move back home, or wherever, and start over again. We retired to Arizona, but moved back home 14 months later. We did keep the Arizona house as a winter home. We didn't want to snowbird, but it seemed the better option for us after we moved to Arizona.
In our case, both of our kids live in the Phoenix metro area and are both pretty settled. So, I don't see us moving back as we age we will need our kids more than any friends back home.
OP, the first thing that comes to my mind is the tax implications. It's possible that in 2020, you will need to pay estimated federal taxes on your retirement income (per a new law), and the state(s) may want a cut, as well. I know Iowa billed me for all of 2013, even though I was only here for four months, and I had to show them my OH state and federal income tax forms to prove that I didn't owe IA taxes for the entire year.
It might be possible that Nebraska, Iowa, and (later) AZ might want some of that money.
My recommendation is to stay on top of the tax laws and make informed choices. If you are "on vacation" for 4 months (10/1 - 2/1), can you prove that? You may still owe Iowa taxes if you can't prove that you didn't live here.
As for me, I've always established residency within the required time limits, which has been 30 days so far. It hasn't been worth it to me to be a "ghost resident" because of taxes and because I just didn't have the wherewithal to deal with The Powers That Be if something were to go wrong and they questioned my residency status. I didn't have anyone I trusted in another state to vouch for me.
Your millage will vary! Everyone's situation is different.
This may seem off topic a bit, but it's relevant to OP as well, how do you handle income taxes if you don't have a clean break with a state? I mean of course if you just happened to move on December 31 from one state to another, well it would be easy, but what if you move mid-year? In my case, an especially extreme one, OR (9-10% income tax) to NV (no income tax)? Is it prorated by the MONTHS you lived where, or is there a certain threshold where if you were in OR for 7 months they just magically say "that's a year for us" or does it depend when the income was earned, and where you were living at that time?
I'm sure that's a complicated accounting question, but if you had any experience, I was rather curious. I wouldn't be too up in arms about it either way, I mean it is what it is, but still I imagine that must be a bit of a headache.
I moved to Arizona from an income-taxing New England state a bit past mid-year. I seem to recall filing two state income tax forms that year, with income earned in each state paid to each state. I don't have my records on hand to check that, however; maybe someone else can reply with more certainty.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
