Permanent Tax Residence - I don't get it

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How does one find out about what it takes to have a permanent residence. I have read so much about it on different sites, but everyone has something different to say! Also how long in the various states can you stay without messing up your permanent tax home? And do you have to return home in the year, or not? Some say you do, some don't. My head is spinning. :confused:

I want to rent a room from my mother-in-law, can this be done? I would pay rent each month, have mail sent to address, be registered to vote, automobiles registered, and have bank accounts in the city. Is this enough?

i'm just confused :o

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How does one find out about what it takes to have a permanent residence. I have read so much about it on different sites, but everyone has something different to say! Also how long in the various states can you stay without messing up your permanent tax home? And do you have to return home in the year, or not? Some say you do, some don't. My head is spinning. :confused:

I want to rent a room from my mother-in-law, can this be done? I would pay rent each month, have mail sent to address, be registered to vote, automobiles registered, and have bank accounts in the city. Is this enough?

i'm just confused :o

It is a very confusing issue primarily because each state has its own set of "rules". Confusion is further compounded because much of the criteria has to do with "Intent". The more committed you are to auto registration, voting card, driver's license and a mail address, the more legal you are as a resident of that state. I am a full time RV 'er and base my residence for tax purposes in Texas. It is income tax free (State) and they are very friendly towards this with full time travelers and retired people. Auto license fees are low as well. You do have to obtain a Drivers License in person - since 911, you can/t do this by mail anymore, but there is not a requirement to return to the state to be official. South Dakota is another very resident friendly state. A good sourse of material to read can be found through the Escapees Website http://www.escapees.com. Also try fulltimerrv.com. If you need specifics I would be happy to help. Greg

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Do you have any idea where I could find information on Kentucky's information and rules for travelers?

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Do you have any idea where I could find information on Kentucky's information and rules for travelers?

I suggest a Google search for state offices, tax board or driver license division. If you own property in a state, that is very strong evidence of tax base declaration. Some states do require you to return for a period. Every situation is very different and depends on so many factors for example: I travel full time, I do not own property anymore. I can bank online (with a TX bank), renew auto and motorhome registration by mail, and obtain a DL for 10 years, I have a permanent mailing address in TX which forwards my mail on a schedule. All of these factors add up to my Texas Residency even though I do not spend any time in TX. I would also advise you to consult a CPA with expertise in this area. I did not, but like you, I did a lot home work. As far as rules for travelers, there are no state rules, you are free to travel and work anywhere you please, however, tax wise there are rules. You must pay income tax in the state you earn it, if it is an income state, If you live in an income state, you may be subect to additional taxes (double taxed). That is why retirees and full timers choose non-state-income tax states to establish residency. I hope this is starting to make sense, keep searching, and reading and asking qustions, if you fail to do this properly, it can be a huge hit from state and fed

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are you renting a room, apartment? how did you obtain residency? Would I have to get an apartment in south dakota or somewhere with no state income tax and pay rent all year and never use it? is that the only way? I, like you, want to travel full time and do not wish to return to my residency periodically. I will have to research kentucky to find out the circumstances here.

thanks for your help

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are you renting a room, apartment? how did you obtain residency? Would I have to get an apartment in south dakota or somewhere with no state income tax and pay rent all year and never use it? is that the only way? I, like you, want to travel full time and do not wish to return to my residency periodically. I will have to research kentucky to find out the circumstances here.

thanks for your help

Hey Again. There are mail and address services that can provide a legal address (Livingston TX is such a county very favorable). You do not have to rent a place or own anything. I live in my motorcoach. Again, with a legal address, drivers license, and auto registration, bank account etc. , you show intent that this is your state of residency. So the message here is that you build a profile either all at once or over time, and remain loyal to your personal business being conducted in the state - of course you happen to work all over the country because that is the nature of your work. Beware that some rent a place in one state, register auto in another and vote somewhere else - big red flag, and a definite ticket to trouble with the IRS. The feds accept our new lifestyle now because travel nursing is a well established occupation as long as the proper intent is followed. All the best - Greg

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Again thanks for all the help :) Sorry but i have a few more questions for you. :rolleyes:

It is recommended that you make it believable as possible that you are maintaining a residence. If the IRS were to audit me, how will it be possible or legal for me to be claiming an address were there is no house or apartment. What company provides such addresses? Also, how will I go about opening a bank account in Texas, if I live in another state?

thanks again

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There is a difference between a PERMANENT RESIDENCE and a TAX HOME. You can have a permanent residece in a state if you have your drivers license, mail box, and bank account in a certain place. BUT, to have a tax home and take the tax advantage, you must duplicate expenses. Such as, have a house payment on your residence, and a rental payment on your travel place (either paid by your housing stipend or directly by the travel company). You must also duplicate utilities and other living expenses (laundary). There is no exact TIME length that you have to spend at your tax home, but you must keep strong ties, and it is suggested that you spend atleast a few weeks between assignments there.

To find out more, a great site to visit is http://www.traveltax.com

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Again thanks for all the help :) Sorry but i have a few more questions for you. :rolleyes:

It is recommended that you make it believable as possible that you are maintaining a residence. If the IRS were to audit me, how will it be possible or legal for me to be claiming an address were there is no house or apartment. What company provides such addresses? Also, how will I go about opening a bank account in Texas, if I live in another state?

thanks again

Hi Nick and Lesley. I am leaving town for a week and can answer those questions and provide a list for you when I return. Sorry for the delay. You can open a bank account anywhere, anytime, just call the bank or use a branch of a national chain like Bank or America. Most can be done online, except they do have to have an original signature card sent throught the mail

Banking is not a big issue, its a small piece of the picture. I still bank in CO as well as TX

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Specializes in med/surg, rural, ER.

My husband and I will be moving this week and hope to start a travel assignment after reaching Minnesota (I am driving from Alaska and taking my time). My parents live in MN and we can stay with them for a short time. We will use their address as a permanent address and have them fwd mail. According to my travel company this is all it takes to have a permanent/tax home. Reading on this thread it sounds that I have been misinformed. :uhoh21: Do you have any more tips on what we should do? Pay my parents rent? Open new bank accounts? (We can't do this until our Permanent Fund Dividend comes in Oct.) Please advise. I have found this move generally frustrating and don't want to get screwed when it comes to taxes because I did something wrong. :o (PS- Thanks for the traveltax.com site, it is helping some)

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Specializes in OB.

Once again "permanent residence" and "tax home" are two different things. You cannot get living expenses from your company tax free unless you are duplicating expenses and fit all the criteria for tax home. A mailing service is not enough. Your company may pay you the money without deducting taxes but if you are audited the burden of proof will be on you, not them, and you will pay the penalties.

There is a tax expert who posts frequently on the delphiforums Travel Nurses and Therapists board who is a good source of information. Try doing a search there for "tax home" information.

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