DoingHomework
Recycles dryer sheets
- Joined
- May 28, 2010
- Messages
- 254
This may not be strictly money/financial questions on the surface, but my reasons for asking boil down to money and personal finance. So here goes:
Do any of the married couples on here have the spouses each legal residents of a different state? This would seem to be feasible to us for several years after retiring even though we plan to live together. It seems the two states we would live in both define residency around about 180 days of presence. I'm not sure of the benefits/drawbacks. But on the surface it seems like something to consider because one of the states does not tax government pensions, which my wife will have, and the other state has very low taxes. It would seem like we ought to be able to legally exploit this situation but I have not worked out the details.
Does anyone do anything like this?
How does it work for taxes, state and Federal? My thinking right now is that we'd file jointly for federal taxes and separately for each state. DW would pay next to nothing on her pension. I'd pay on my retirement income at a lower rate in the other state. When it comes time for her to make RMDs things could change a bit, but that would not be for many years after we retire.
Obviously this is a little complicated but it could save us thousands a year in taxes if I understand the rules correctly. I guess I'm just looking for comments regarding any personal experiences with doing this to determine whether to look into it further.
We own property in both states and could meet any presence tests. I don't think legally qualifying would be an issue. My question is whether it makes sense.
Do any of the married couples on here have the spouses each legal residents of a different state? This would seem to be feasible to us for several years after retiring even though we plan to live together. It seems the two states we would live in both define residency around about 180 days of presence. I'm not sure of the benefits/drawbacks. But on the surface it seems like something to consider because one of the states does not tax government pensions, which my wife will have, and the other state has very low taxes. It would seem like we ought to be able to legally exploit this situation but I have not worked out the details.
Does anyone do anything like this?
How does it work for taxes, state and Federal? My thinking right now is that we'd file jointly for federal taxes and separately for each state. DW would pay next to nothing on her pension. I'd pay on my retirement income at a lower rate in the other state. When it comes time for her to make RMDs things could change a bit, but that would not be for many years after we retire.
Obviously this is a little complicated but it could save us thousands a year in taxes if I understand the rules correctly. I guess I'm just looking for comments regarding any personal experiences with doing this to determine whether to look into it further.
We own property in both states and could meet any presence tests. I don't think legally qualifying would be an issue. My question is whether it makes sense.