Personal State Tax Residency Issues/Domicile, Statutory Residency, Reciprocal Tax Agreements, &COVID
ฝัง
- เผยแพร่เมื่อ 13 ก.ค. 2024
- Personal State residency issues and audits are an actual "thing" and now, thanks to COVID, also a hot topic.
In this segment, we will discuss some really interesting topics
-What is the "Jock tax"
-NYS vs. Derek Jeter
-Burden of proof - state residency audits
-Domicile and statutory residency - definition, examples, and variations
-Income tax-free states not the cheapest states to live in?
-Having dual residency for state tax purposes
-Reciprocal state tax agreements
-NYS convenience of the employer
-Audit defense apps
-Ohio's bright-line test, contact period
-California's temporary and transitory variation
-How aggressive is your state when it comes to state residency tax audits
-Telecommuting due to COVID and tax implications
DISCLAIMER: All Freyman CPA, P.C. videos are provided for general informational purposes only and deal with dynamic, time-sensitive, complex matters that may not apply to particular facts and circumstances. Information provided here should not be relied upon as a substitute for professional advice in connection with any particular matter.
We try to ensure accuracy, however, all information provided to you is provided “as is”, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied.
Any information provided to you is not a substitute for professional legal, tax, or accounting advice.
Laws, rules, policies, and regulations change from time to time and the application and impact of laws can vary widely based on the specific facts involved. Accordingly, before making any decision or taking any action, you should consult a professional advisor.
Facebook - / businessaccountantsjac...
Official Website - www.taxproff.com
#TaxAdvice #TaxExtension
New York is by far one of the worst states. I don't blame people for leaving.
Only corporations are required to file taxes. Otherwise voluntary.
Not that it is any big deal, but I think you meant Alaska and not Alabama on your list of tax-free States. Also, New Hampshire does have a dividend and interest tax. I had a wealthy relative who upon retirement looked into relocating from Massachusetts to New Hampshire, but the tax savings in his case were not that great, much to my surprise. He had a very very large investment investment in savings portfolio.
one needs to look at all the taxes to make such a choice, some states have no taxes but the overall tax cost is greater than a state with income tax. Yes you are correct, thre are many taxes that can come into play in our txa world, those are some examples you are correct, here we discuss income tax as that tends to have the most impact and that is what get people the most, hope that helps :)
If you are a part-time resident in two states, and your only income is unearned, how do you allocate the amount of unearned income that goes to each state?
Our insurance policy prohibits us from rendering advice without being fully engaged. Thank you for understanding.
DOMICILES are not 'part time' - as the person in the video says, you may only have 1 Domicile, despite residing in, well 50 States as such may be the case with RV'rs.
If you establish your FULL Domicile in South Dakota for example, you only need to reside in the State for 24 Hours, however, you have to build that connection to the people, such as joining a Church congregation, establishing a charity foundation, registering vote as a S.D Citizen, let alone joining a Housing Association, and/or placing our main "Bank Account" preferrably a CREDIT UNION chartered only in South Dakota.
Now, IF 100% of your "INCOME" passes through South Dakota, it is effectively property of the "State" aka State Identity as a S.D CItizen - you need to also establish your TRUSTS in South Dakota, which many many People do, and by Trusts, I am referring to your Commercial Trust such as D.B.A Name, LLC, etc, your Retirement Trust, Healthcare Trusts, Education Trusts, Land and Real Property Trusts. They are ALL designed to protect your Unearned Income, shielding it from Other States, and this is becoming a huge issue to other States, cause in South Dakota - according to our statutes, and regulations, the State does NOT allow a Foreign State or Territorial Govt (federal government) access to them.
South Dakota also does not have an Income Tax, it has a Direct State Sales Tax, which means, YOU as a domiciled S.D Citizen - do not owe sales tax to another State, so if you did pay sales tax in another state, you could end up with a "Tax Credit or Refund" inside S.D. All you statutory forced to pay is a 4.5% Sales Tax plus up to 2.0% Sales Tax in the City you reside within S.D in, so if you travel outside of S.D - you lawfully do NOT owe another States sales tax, you could, if you know how to do so, 'exempt' yourself from another States sales tax at the time of purchase.
In South Dakota - the Sales Tax is defined as being DUE at the time you deliver the merchandise to your "Domiciled Residence" - not the store front itself.
Although, if you shop and do business inside the State, the Retailers are collecting the tax up front, but in reality, the "Tax' is NOT due until you actually deliver the merchandise to your home.
What South Dakota has done, is create RULES, if the Retailer has been contracted by the State, meaning a Sales Tax # - it legally has to collect the tax from you up front, however,
IF you are purchasing items remotely, or by traveling to other States, and if the State can prove that those Businesses have generated revenues from you or other fellow Citizens, earning $100,000 a year, then those foreign businesses have to collect the tax from you up front.
However, YOU are the one who actually owes S.D Sales Tax as a domiciled resident. Regardless of where you buy food, clothing, merchandise, services, the 'goods and services' are to be presumed, delivered to your "Front Door" or your Domicile Residence.
So, it now comes very important, where you 'pass that income" through, if you wish to avoid Sales Tax let alone Income Taxes in other States, so long as South Dakota can show evidence, that your INCOME has been shielded inside South Dakota, by means of Banking, or other forms of TRUSTS, South Dakota will actually go to bat for you, and sue the other State over a Controversy or Dispute between States or Group of States.
This is what is the majority of the argument today, over S.D Trusts...
Americans are actually domiciling themselves in South Dakota thanks to our Trust Laws.
The South Dakota Legislative Research Council has a very interestign research paper it published that you may want to read:
mylrc.sdlegislature.gov/api/Documents/Issue%20Memo/207378.pdf
South Dakota is fast becoming a huge "Domicile State" for not only RV'rs, but for many wealthy Americans wanting to shield their incomes from foreign states and territories.
what if you worked in New York for 11 months but address in Florida? I filed federal taxes in Florida, but I worked in New York for 11 months, now what? what form do I file for New York State
Hi Alexandra, you pose an excellent question.
Unfortunately your question is out of the scope of this informational video.
This video was created with the intention of informing the general public on multi-state tax issues and to create an overall awareness of potential tax consequences when “switching” states for tax purposes.
If you would need further information on how exactly the law is applied to your specific situation, we strongly suggest that you seek out the help of a qualified tax professional that will help you navigate the complexities and prepare a correct tax filing.
Thank you,
Freyman CPA
If i am retiring overseas can i domicile in SD instead of NY to save on state tax. It don't make sense to keep the NY domicile since i will be 100% out of the US.
You can probably leave the state domicile, look into the state of NY to see how to formally leave the domicile and take it from there.
wow its not stereo
I noticed lol
boring