Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Determining State Residency
Old 08-02-2015, 02:54 PM   #1
Thinks s/he gets paid by the post
RockyMtn's Avatar
 
Join Date: Jul 2009
Location: North Scottsdale
Posts: 1,545
Determining State Residency

Currently reside in state of Colorado but have another home in Arizona. Have bank accounts, cars, dr's, etc in Colorado so that has been considered our state of residency. We also spend slightly more than half the time in Colorado.

Have just signed a contract to sell our house in Colorado. We may return next summer and purchase a smaller condo/house.

For residency purposes which state do you think we call home? Doesn't overly effect me much (other than potentially having to fill out two state tax returns). For GF there is the issue of ACA. In Colorado she goes through state exchange. In Az it is Federal exchange. The Colorado policy she bought does cover her while in Az.


While we are technically moving it is not necessarily a final full time move. We have not changed voter registration, driver's license, car insurance, etc.

Thoughts?
__________________
FIRE'D in July 2009 at 51...Never look back!
RockyMtn is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-02-2015, 03:31 PM   #2
Recycles dryer sheets
Theseus's Avatar
 
Join Date: Aug 2013
Posts: 484
Go to Four Corners and play spin the bottle? My guess would be it could be called either and probably not be contested unless some reason were made available (like a current mailing address that didn't jive), however if contested it might be sticky.
Attached Images
File Type: png Untitled.png (1.73 MB, 12 views)
Theseus is offline   Reply With Quote
Old 08-02-2015, 03:34 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,012
If your intention is to return, that may be good, but you do have the little pesky issue of not having a street address in Colorado once your house is sold. That will probably cause problems.

For example, if you do a permanent change in address at the Post Office, the IRS will pick that up for your future tax return.

Then you need a county for registering your vehicles. What address do you give them? And your voter's registration?

You insurance companies will also care very much.

I think you need to figure out a way to retain a CO address.
__________________
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Old 08-02-2015, 03:46 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Mar 2010
Location: Kerrville,Tx
Posts: 3,361
The comment we may return gives the issue away. You are not sure you will return so Co. is not your permanent address. At this point the Az address is your permanent address since you do not have a definite intention to return to Co. Of course many folks use a private mail box for mail and have them forward the mail. Look on the RV forums for folks that travel most of the time and use an RV park as an address.
meierlde is offline   Reply With Quote
Old 08-02-2015, 04:47 PM   #5
Moderator Emeritus
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 47,474
I don't know anything about the applicable laws, so take this post with a grain of salt. That said, it definitely seems to me that you are moving to Arizona.
Quote:
Originally Posted by RockyMtn View Post
While we are technically moving it is not necessarily a final full time move. We have not changed voter registration, driver's license, car insurance, etc.

Thoughts?
If your driver's license and insurance are not assigned to any address where you are living, I think you are asking for trouble? I may be wrong (often am) but IIRC you have 30 days to change your driver's license address.

I'll ignore what RV'ers do because I never quite understood how they pull that off. But anyway, I'm just expressing my opinion and you can decide how much weight to give it.

And "a final full time move"? When has anybody ever made a final move these days? Nope, to me you are moving and that's that. YMMV though.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.

Happily retired since 2009, at age 61. Best years of my life by far!
W2R is offline   Reply With Quote
Old 08-02-2015, 06:12 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2008
Posts: 5,178
I wonder about this too. Which state would you have to pay state taxes for from when?


Sent from my iPad using Early Retirement Forum
tmm99 is offline   Reply With Quote
Old 08-02-2015, 06:37 PM   #7
Full time employment: Posting here.
Dd852's Avatar
 
Join Date: Jul 2013
Location: London/UK (dual US/UK citizen)
Posts: 502
Some states hate to give you up! New York State audited me four years after I'd moved out of the country trying to prove I was still domiciled there for tax purposes. I passed the audit, thankfully, but it took 18 months of arguing.


Sent from my iPad using Early Retirement Forum
Dd852 is offline   Reply With Quote
Old 08-02-2015, 07:36 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
Arizona.

Can you legitimately still be registered to vote, have a license or car insurance in Colorado once you no longer live there? I think for car insurance, it is based on where the car is garaged most nights, which would presumably be Arizona.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56
pb4uski is offline   Reply With Quote
Old 08-02-2015, 08:17 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,012
Quote:
Originally Posted by W2R View Post
I don't know anything about the applicable laws, so take this post with a grain of salt. That said, it definitely seems to me that you are moving to Arizona.

If your driver's license and insurance are not assigned to any address where you are living, I think you are asking for trouble? I may be wrong (often am) but IIRC you have 30 days to change your driver's license address.

I'll ignore what RV'ers do because I never quite understood how they pull that off. But anyway, I'm just expressing my opinion and you can decide how much weight to give it.

And "a final full time move"? When has anybody ever made a final move these days? Nope, to me you are moving and that's that. YMMV though.
The 30 day thing is for people changing employment. There aren't strict deadlines for the unemployed.

For the RVer, it does depend on the state, but assuming you return to certain campgrounds each year, you can pick one of them as a permanent address, and you won't have any trouble.

I never heard of a requirement to have your vehicle somewhere X nights.
__________________
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Old 08-02-2015, 08:29 PM   #10
Thinks s/he gets paid by the post
 
Join Date: Mar 2010
Location: Kerrville,Tx
Posts: 3,361
Quote:
Originally Posted by audreyh1 View Post
The 30 day thing is for people changing employment. There aren't strict deadlines for the unemployed.

For the RVer, it does depend on the state, but assuming you return to certain campgrounds each year, you can pick one of them as a permanent address, and you won't have any trouble.

I never heard of a requirement to have your vehicle somewhere X nights.
In most states it says so many days after you establish residency, no relationship to employment.
If you read your auto insurance policy it says the vehicle is principally garaged at the address specified. Making a false declaration allows the insurance company to cancel the policy if there is a loss, leaving you in the lurch.

Here is AZ's definition of when you need a drivers license "
State law requires that you obtain an Arizona vehicle registration and driver license, immediately if any of the following applies:
  • 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."
meierlde is offline   Reply With Quote
Old 08-05-2015, 07:07 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Koolau's Avatar
 
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 17,809
Unfortunately, as pointed out already, the downside of getting this wrong can be significant. I would rigorously check the state(s)' (and things like insurance) rules and then comply. When I moved, I had no problems "claiming" new residency but YMMV.
__________________
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
Koolau is offline   Reply With Quote
Old 08-05-2015, 09:30 PM   #12
Recycles dryer sheets
 
Join Date: May 2014
Location: Yuma AZ
Posts: 274
A warning to toss in regarding such as car insurance. If you have an accident, and your insurance company decides you have not been honest regarding your residence status, they might deny coverage.
unno2002 is offline   Reply With Quote
Old 08-05-2015, 09:40 PM   #13
Thinks s/he gets paid by the post
RockyMtn's Avatar
 
Join Date: Jul 2009
Location: North Scottsdale
Posts: 1,545
Sounds like we are going to become Az residents sometime in September after the sale on the house closes. No real downside. Az and Co state taxes basically the same. Might even save a few $$$'s on car insurance. Just a bit of a pain to change GF's health insurance for a couple of months.


Kind of what I figured so no huge deal.
__________________
FIRE'D in July 2009 at 51...Never look back!
RockyMtn is offline   Reply With Quote
Old 08-07-2015, 05:19 PM   #14
Dryer sheet wannabe
 
Join Date: Feb 2014
Posts: 24
Another consideration not to be overlooked is your will and estate plan. You should consider some legal advise and probably update your will.


Sent from my iPhone using Early Retirement Forum (that's why it's brief!)
Empresario is offline   Reply With Quote
Old 08-07-2015, 05:35 PM   #15
Thinks s/he gets paid by the post
RockyMtn's Avatar
 
Join Date: Jul 2009
Location: North Scottsdale
Posts: 1,545
Quote:
Originally Posted by Empresario View Post
Another consideration not to be overlooked is your will and estate plan. You should consider some legal advise and probably update your will.


Sent from my iPhone using Early Retirement Forum (that's why it's brief!)
That's on the list for when we go empty out the other house. Thanks for all the info folks. Looks like we will just switch everything over and become Az residents!!!
__________________
FIRE'D in July 2009 at 51...Never look back!
RockyMtn is offline   Reply With Quote
Old 08-07-2015, 07:10 PM   #16
Thinks s/he gets paid by the post
 
Join Date: Mar 2010
Location: Kerrville,Tx
Posts: 3,361
Quote:
Originally Posted by Empresario View Post
Another consideration not to be overlooked is your will and estate plan. You should consider some legal advise and probably update your will.


Sent from my iPhone using Early Retirement Forum (that's why it's brief!)
Or at a minimum take your existing documents etc to an instate lawyer and have him review them I had a neighbor do the review with the attorney I used to handle my parents estate, and it turned out that though out of state he found the neighbors documents ok (they had a trust). So first figure on a review and see what the lawyer recommends.
meierlde is offline   Reply With Quote
Old 08-07-2015, 09:31 PM   #17
Thinks s/he gets paid by the post
RockyMtn's Avatar
 
Join Date: Jul 2009
Location: North Scottsdale
Posts: 1,545
Quote:
Originally Posted by meierlde View Post
Or at a minimum take your existing documents etc to an instate lawyer and have him review them I had a neighbor do the review with the attorney I used to handle my parents estate, and it turned out that though out of state he found the neighbors documents ok (they had a trust). So first figure on a review and see what the lawyer recommends.
My attorney will give me the lowdown on the move and recommend an attorney for me in Az. Colorado and Arizona have very similar estate laws, taxes, etc so it may not be a big issue.

Have already spoken with insurance company and everything is easily transferrable. Just paperwork. DMV on cars, licenses, voter registration pretty easy as well.

Hate to have to file multiple state returns but TTax will handle fine.

Biggest issue will be GF switching from the very easy to use Colorado Health Exchange to the Federal Exchange here in Az.

Hey..whadda you going to do? Moving involves some pains. Whether it is in state or out of state.

Will just be glad to be down to one house and renting a month or two in the summer!
__________________
FIRE'D in July 2009 at 51...Never look back!
RockyMtn is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Best State Residency ljrtan Life after FIRE 13 05-26-2014 06:54 PM
residency & domicile across state lines lazygood4nothinbum Life after FIRE 12 06-30-2008 01:57 PM
State Residency and Taxes??? Orchidflower FIRE and Money 35 08-08-2007 09:45 AM
State residency for Armed Forces personnels for in-state college tuition. Sam Other topics 9 07-30-2007 05:06 PM
Determining Annual WR for Variable Spending Workwayless FIRE and Money 0 10-11-2006 09:26 AM

» Quick Links

 
All times are GMT -6. The time now is 08:42 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.