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Homeless guy uses a shelter as an address -- say for social security or disability -- as a lot here in NYC do. Then he wins the lottery or some relative dies and leaves him a million. Does he owe federal, state, or local taxes? IDK. Someone out there?
These questions are pretty simple. Homeless guy wins the lottery then he pays taxes like everyone else does, depending on the state tax system.
Homeless guy who makes little income, still must file, but probably will end up paying next to nothing, even if he/she takes advantage of free medical care. Depends on the threshold of income, which for a single in WA State I believe is just over 15K couples and families will find a a higher threshold, depending on imcome.
You can plate your car wherever you want, provided you have satisfactory evidence of residence in the state of registration.
A dozen or so states do not have any state income tax, the largest of which are Texas, Florida and Washington. If you file for federal tax, you are considered to be a resident of the state you give as an address when filing federally.
As a practical matter, only "have to" pay tax on your income that is also cross-reporred by whomever pays you the income. If it is wages, your taxes will be withheld by the wage-payer according to the state you declare to be your residence. You would need to file a return in that state, in order for the deducted taxes to be credited to you.
Unless you have an eye-popping income, your tax liability will not attract very much attention, and you can ignore the question if you sufficiently complicate matters.
The people who make the laws are boring old guys who go to work every morning at eight ocloick, and the idea of living a different lifestyle never pops into their walnut-sized brain, because they have been trained to be knee-jerkers. You need to live like they do in order to comply with the laws they make, so therefore it is illegal to live any other way. You just need to stay under the radar, keep your head down so it doesn't get shot off.
These questions are pretty simple. Homeless guy wins the lottery then he pays taxes like everyone else does, depending on the state tax system.
Homeless guy who makes little income, still must file, but probably will end up paying next to nothing, even if he/she takes advantage of free medical care. Depends on the threshold of income, which for a single in WA State I believe is just over 15K couples and families will find a a higher threshold, depending on imcome.
*Free medical care* could be more complex. Like other programs they are based on a % above poverty level and how many family members. Age and certain other factors could enter the federal tax return calculations. I'm not disagreeing with you, pnwguy2, I'm expanding what could be different due to different types of healthcare coverage. (You'll never know how blown away I was by some of the things you wrote in that other thread, given differences between states, family size and *little income* vs. no income. Actually, you may have an idea as you wrote about the assets I mentioned for one family I worked with in a different state. BTW, I do know the difference between *write* and *right*. That may have been auto correct or other.).
For this example in this thread, if the person received medical care under the Affordable Healthcare Act - AKA Obamacare - free medical care or greatly reduced in price policies aren't always so cheap. The person must file a federal tax return, including a federal form showing the Advanced Tax Credits used that year. The Advanced Tax Credits could easily result in the person having to pay federal tax and steep penalties if any taxes due aren't sent by by 4/15. Anyone who used an Obamacare plan, in every state, must file a federal return including the *income* of dollars used for Obamacare.
For federal returns income is income regardless if it was investment, rentals, working or Advanced Tax Credits. I'll post some info about Obamacare and the Poverty Line for 2015 at the end.
If someone used Obamacare, find out for sure if you got a Medicaid Expansion or a greatly discounted private healthcare insurance plan.
As for state income taxes, those are state specific.
You can plate your car wherever you want, provided you have satisfactory evidence of residence in the state of registration.
A dozen or so states do not have any state income tax, the largest of which are Texas, Florida and Washington. If you file for federal tax, you are considered to be a resident of the state you give as an address when filing federally.
As a practical matter, only "have to" pay tax on your income that is also cross-reporred by whomever pays you the income. If it is wages, your taxes will be withheld by the wage-payer according to the state you declare to be your residence. You would need to file a return in that state, in order for the deducted taxes to be credited to you.
Unless you have an eye-popping income, your tax liability will not attract very much attention, and you can ignore the question if you sufficiently complicate matters.
The people who make the laws are boring old guys who go to work every morning at eight ocloick, and the idea of living a different lifestyle never pops into their walnut-sized brain, because they have been trained to be knee-jerkers. You need to live like they do in order to comply with the laws they make, so therefore it is illegal to live any other way. You just need to stay under the radar, keep your head down so it doesn't get shot off.
I think I understand your post, jtur. In many situations I would agree with you, but not if the person receives more than the limit of untaxed income from DDSI and probably a higher limit if the person receives Retirement Social Security. As I answered previously, much will depend on how the person was covered for health care.
I agree with pnwguy2 that in certain ststes Medicaid or expanded Medicaid may be at no cost to the individual. I don't know that I was clear enough about that as it totally depends on the state. For those who used a Marketplace Health insurance and paid lower amounts for premiums, that person will receive an IRS Form 1095-A documenting exactly the dollar amount of Advanced Tax Credit he/she received. That document along with the SSA retirement income, or DDSI and SSI, if the person receives that too. There is no way that person can lay low and not attract attention if a Federal Return is required. Everyone receiving the Advanced Tax Credit must file.
I know an experienced, well respected CPA who advised clients with low incomes to not worry about the Advanced Tax Credit reporting, given their total income. Her clients received special letters and phone calls, if they didn't file a 2014 Federal Return, regardless if other laws stated they didn't have to file. The SSA, CMS and potentially other federal agencies have all that information. It appears somehow to be shared with the IRS when the IRS knows the phone numbers to reach people. I'm not saying I think that is ethical nor cool for the IRS to call someone, or a couple out of the clear blue. I'm saying 2014 was the first year of that new tax form, 1095-A, and good CPAs, giving what they thought was the most correct advice to their clients, had clients receive the letters and phone calls from the IRS.
I don't mean to make this complex but some of the examples cited above about SSA income etc. make what use to be much more simplistic situations now complex for many.
MSR
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