Another Tax Home Question

NedRN · Jan 18, 2015

You are best off consulting with a specialist. As described, this sounds marginal at best. If you are audited, there will be questions about your husband's residence and where your family earns income.

RNAvatar · Jan 18, 2015

Thanks for the response. I suppose I already knew the answer, but wanted to double check with others. I will definitely consult with a specialist and re-consider if I want to pursue tax home establishment or be an itinerant traveler. My husband also does not like the sound of applying for a WI driver's license and title, so it might just be easier and safer to be itinerant.

NedRN · Jan 18, 2015

Does your husband have a steady or recurring job in one area? That is where I would suggest setting up a home.

RNAvatar · Jan 18, 2015

Yes, he does and it's in WI, so he files for WI state taxes. But, we have no other ties there besides his workplace. We really don't like living there either, so we probably wouldn't want to set up a home/pay rent there.

NedRN · Jan 19, 2015

Paying rent now, right? Unless he is quitting job, seems like a no brainer.

RNAvatar · Jan 19, 2015

No we are actually living in mn and renting here, hence I changed to a MN drivers license. My husband works from home here although his company is in WI. I suppose it is a possibility to rent some studio in WI where his workplace is, but we don't ever go back there. That's why I was hoping to set my parent's home in WI as my tax home. I'd like to have the WI compact RN license as my primary license again as well.

NedRN · Jan 19, 2015

The rules for compact licensure are different than for a tax home. It is entirely possible you could have a legit compact license and still be itinerant for IRS purposes.

A driver's licence would just be supporting evidence for either one, not primary.

RNAvatar · Jan 19, 2015

So I could have my MN driver's license, but use my WI compact RN license when I start traveling? I thought I would need a WI driver's license as proof of residence in WI in order to declare it as my primary state of residence and hence travel to other compact states without applying to them...? Since I suppose my primary state of residence would be MN now.

NedRN · Jan 19, 2015

You would have to talk to the WI BON about details. They may require you to have WI ID, but it is more about declaring an official state residence. The rest is just supporting evidence of a primary residence. They may require you to also pay WI state income taxes on all your income as well.

Much less than taxes, don't use me as any kind of a license guru, ask the source. The BON might not be able to tell you either, until it comes down to a complaint filed out of state with them. Then they may determine that you were practicing without a license due to such and such not being done. Hopefully it won't ever come to that, but I have read about such cases with the TX BON making such determinations about travelers with a compact license from other states. Taxation is trivial compared to risking your license and ability to practice! If you have any doubt, forget about compact licensure and get single state licenses. It will likely only cost you a few hundred dollars a year extra, and perhaps missing out on some assignments, but I'll tell you a secret: generally compact states pay less anyway! More competition.

RNAvatar · Jan 19, 2015

Thanks...sounds like applying to each state individually and being itinerant will be safest way to play it. I will definitely consult a specialist though. Thanks for all the input!