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Old 07-28-2020, 02:13 PM   #21
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Originally Posted by someguy View Post
SALTedOut -- first -- love your name! Second, have you had any experience on specifics of income earned? Is it always where the person is physically located? Does income from an owned business follow the owner's physical location? If a woman owns a web-based business that generates money passively (ie, for long stretches without the woman owner "working" on it), does that follow her (and does it matter if it's W2, LLC pass thru, K1, etc)? What about vacation and how is that defined for an owner?
Haha, I was wondering if anyone would ever understand my name. Yes, I burned out of the state tax world after 30 years so SALTedOut seemed appropriate here.

It is not always where the person lives depending on what is being sold. Back to be basic rule is your state of permanent residency can tax 100% of your earnings with a credit for taxes paid to other states. Whether another state tax tax you depends on what the web business is selling. Is it tangible property (i.e., a physical good), is it a service, information, other?

I'd be happy to give you some thoughts but I'd need more information. Feel free to PM me with more info.
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Old 07-28-2020, 02:23 PM   #22
Recycles dryer sheets
 
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Originally Posted by cathy63 View Post
Professional athletes usually file a dozen or more state returns because every out-of-state road game represents earnings for them.
Interesting side note:

Prior to most of the professional leagues negotiating with the states the big controversy for athletes was how they get paid. Say a football player makes $16M/year. Is that $1M per game? Should it include preseason also? Or are they paid $16M/number of days of the season? Or $16M/365? Each of these results in a different amount of earned income for the 3 days a player spends in an away state for a road game. The away states of course wanted a pay per game amount because that gave them the largest amount of taxable wages. The players/agents wanted to argue the pay was spread over 365 days so they 3 days of pay resulted in the smallest amount possible. These were big fights that went on in most states.

Say a boxer trains for 6 months for a fight that happened in NJ. Then goes to NJ for a few days and earns a $10M payday. Can NJ tax $10M or only a portion? This is why so many fights are in NV.
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Old 07-28-2020, 03:04 PM   #23
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He's visiting each state for 60 days. Does the virus not impact visitors? I was not familiar with that safety feature.
I thought you were referring to his “permanent mailing address “.
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Old 07-28-2020, 03:47 PM   #24
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Put your junk mail on hold and most any utility bill is online. Sign up for USPS informed mail if you don't put a hold on your mail and have a friend grab what looks important. If you aren't doing billing and just working, I doubt the IRS is going to track you down in whatever state you are in. They have budget cutbacks and audits are decreasing. But keep track just in case.
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Old 07-28-2020, 03:48 PM   #25
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The states know high dollar athletes are in their towns. Low level people can probably not bother to file.
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Old 07-29-2020, 06:44 AM   #26
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Probably best to fill out multiple state tax forms. Surprised some are suggesting you commit tax fraud. If you're moving from a high income tax state, your behavior will probably be scrutinized.
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Old 07-29-2020, 01:45 PM   #27
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[QUOTE=What if I were a snow bird and went down to Arizona for a month or two and worked from my temporary home in Phoenix for the month of January and then returned to my home state for the other 11 months, would I have to pay Arizona state taxes during for my one month stay? That is just crazy to believe![/QUOTE]

As a former resident of AZ, yes, by law 'snowbirds' or part-time residents are required to pay state income tax on the income received during the months of part-time residence in AZ for said year. When I lived overseas as a military officer and was still a resident of CA, had to pay CA state income tax.

I have been fortunate in that a few of the times I have moved back and forth overseas, I have severed ties with my previous state residence and used my father's address which was first in TX and now in FL. I obtained a driver's license and voter's registration card when visiting before moving and then have established residency. However, when I have done that I have severed ties: no home, no business, no car, no driver's license and no voting in previous state. I have also paid any last state income taxes for the part of the year I was last resident in said state.

As long as you are deliberate, scrupulous and follow the rules, you should be fine.

Comment about CA; they are tenacious. They have tried to pass laws to claw back taxes on pension earnings from former residents based on years resident in CA that contributed to pension income. You may need to keep abreast of those types of possible laws, etc, in previous state residences. Things can change. I lived in CT when going to graduate school, and at the time they had no state income tax. Just as I was driving out of the state graduate degree in hand to move back west in 1991, I remember seeing hordes of people descending on the beautiful capitol building in Hartford angry as the state legislature had passed a state income tax requirement and the governor had signed it into law. Will never forget that scene.
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Old 08-20-2020, 06:49 PM   #28
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Assuming you will be driving your personal vehicle from location to location, how will you manage auto insurance, since I believe all insurers want to know where the vehicle is "garaged"....insurance rates are geographically based. Will you contact your insurer every two months for a rate adjustment? My questions are not rhetorical, I don't know the answers, but I think these might be important questions? The difference with RVers is that they live in their vehicles.
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