Need adivce on "tax residence"

sharpeimom · Mar 26, 2012

our neighbors across the street are retired and live eight months in florida and four months here. they were advised

that they must spent eight months in florida to qualify for residence there and not be considered residents here where

there's a state income tax. they time it almost to the day.

i'd ask a c.p.a. just to be on the safe side, but i'm pretty sure it has to be your actual residence

and not just an income (rental) property.

79Tango · Mar 26, 2012

I am not a licensed tax-professional but I would say the answer is depends on a number of variables. Were you working as a traveler in WY for the past 1.5 years? If you are paying taxes on the rental property, it would be hard to claim that you live there. Not to mention, if you have been been recieving any tax free PerDiems, you probably need to stay with whatever address you have listed on your contract.

NedRN · Mar 27, 2012

Wyoming is your tax home as it is where you earn your money and reside. At a minimum, to claim a tax home in a state you are not working in, you must have a residence that you can return to at any time (and sleep in). In addition, the IRS says you must return "regularly" and have strong ties to the area.

You may have a permanent residence in Colorado, but that is different from a tax home (primarily for federal tax purposes of claiming business expenses working away from home), or even a tax domicile (for state tax purposes). You certainly don't have a tax home in Colorado as you do not have a place to return at any time - you have rented it out.

You should be paying federal income taxes on all your income, including supplied housing in Wyoming or a housing stipend. You also owe Wyoming as your work state taxes on all your earnings including housing, and Colorado may have a claim as well depending on their rules and what steps you have done to move your domicile from Colorado.