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View Full Version : Changing your legal residence or HOR.



giggawatt
04-12-2013, 02:45 PM
Has anyone done this? What is involved with it? I know it's not just a simple change with a lot of things to consider.

I'm just tired of giving money away to the state of Taxachusetts. Every tax year I end up either owing taxes or get a $10 refund but still owe because my stupid state charges to file. I haven't lived in that state for 12 years and I'm tired of their shenanigans.

When you file, they ask if you've purchased any items over $1,000 out of state so they can tax you for it. This is mainly because a lot of people go across the border to New Hampshire to buy stuff because they don't have sales tax.

Really rustles my jimmies.

VFFTSGT
04-12-2013, 02:58 PM
I did it when I inprocessed my base...just filled out some form with finance...

Pullinteeth
04-12-2013, 03:01 PM
DD Form 2058...easy peasy....6 blocks to fill out...

giggawatt
04-12-2013, 03:03 PM
Do they give you any grief about living there when you get out etc?

SomeRandomGuy
04-12-2013, 03:04 PM
Has anyone done this? What is involved with it? I know it's not just a simple change with a lot of things to consider.

I'm just tired of giving money away to the state of Taxachusetts. Every tax year I end up either owing taxes or get a $10 refund but still owe because my stupid state charges to file. I haven't lived in that state for 12 years and I'm tired of their shenanigans.

When you file, they ask if you've purchased any items over $1,000 out of state so they can tax you for it. This is mainly because a lot of people go across the border to New Hampshire to buy stuff because they don't have sales tax.

Really rustles my jimmies.

Are you talking about changing your state of legal residence for tax purposes or changing your home of record? Those are two completely different things. If you want to change your state of legal residence for tax purposes all you need to do is fill it a DD2058. It really is that simple. Finance is not the State of legal residence police. If you want it changed we change it. Simple as that. If you read the form it explains that the only thing necessary to change your state of legal residence is prescense in that state and intent to return after you seperate from the military. Here is what the form says:


The purpose of this certificate is to obtain information with respect to your legal residence/domicile for the purpose of determining
the State for which income taxes are to be withheld from your "wages" as defined by Section 3401(a) of the Internal Revenue Code
of 1954. PLEASE READ INSTRUCTIONS CAREFULLY BEFORE SIGNING.

The terms "legal residence" and "domicile" are essentially interchangeable. In brief, they are used to denote that place where you
have your permanent home and to which, whenever you are absent, you have the intention of returning. The Soldiers’ and Sailors’
Civil Relief Act protects your military pay from the income taxes of the State in which you reside by reason of military orders unless
that is also your legal residence/domicile. The Act further provides that no change in your State of legal residence/domicile will
occur solely as a result of your being ordered to a new duty station.

You should not confuse the State which is your "home of record" with your State of legal residence/domicile. Your "home of
record" is used for fixing travel and transportation allowances. A "home of record" must be changed if it was erroneously or
fraudulently recorded initially.

Enlisted members may change their "home of record" at the time they sign a new enlistment contract. Officers may not change their
"home of record" except to correct an error, or after a break in service. The State which is your "home of record" may be your State
of legal residence/domicile only if it meets certain criteria.

The formula for changing your State of legal residence/domicile is simply stated as follows: physical presence in the new State with
the simultaneous intent of making it your permanent home and abandonment of the old State of legal residence/domicile.
In most cases, you must actually reside in the new State at the time you form the intent to make it your permanent home. Such intent
must be clearly indicated. Your intent to make the new State your permanent home may be indicated by certain actions such as: (1)
registering to vote; (2) purchasing residential property or an unimproved residential lot; (3) titling and registering your
automobile(s); (4) notifying the State of your previous legal residence/domicile of the change in your State of legal
residence/domicile; and (5) preparing a new last will and testament which indicates your new State of legal residence/domicile.
Finally, you must comply with the applicable tax laws of the State which is your new legal residence/domicile.

Generally, unless these steps have been taken, it is doubtful that your State of legal residence/domicile has changed. Failure to
resolve any doubts as to your State of legal residence/domicile may adversely impact on certain legal privileges which depend on
legal residence/domicile including among others, eligibility for resident tuition rates at State universities, eligibility to vote or be a
candidate for public office, and eligibility for various welfare benefits. If you have any doubt with regard to your State of legal
residence


EDIT: If you want you can fill out the DD2058 electronically and digitally sign it. Then email it to finance. I t really is as simple as one person said above. 6 easy blocks to fill out. Depending onw hat state you elect you also have one other step to complete. Once you state of legal residence is chanegd you need to login to MyPay and declare taht you want to be exempt from state income tax. Being exempt is not necissarily automatic unless the state you elect does not have an income tax.

oldgrndr@
04-12-2013, 03:05 PM
It's going to vary a little based on the state you want to now claim. In my case it was basically prove that you intend to stay (or come back once you retire/separate). There was a laundry list of things on the states .org site the qualified as proof. such as: buy or rent a home, get untility services at that residence, register a vehicle, get a drivers license to name a few. But the most important for me was changing my LES. If you really are in Germany as your location says it could be tricky.

VFFTSGT
04-12-2013, 03:06 PM
Do they give you any grief about living there when you get out etc?

Nope...you can have "intent to remain there" today and life plans change tomorrow.

sandsjames
04-12-2013, 03:09 PM
Do they give you any grief about living there when you get out etc?

Remember, once you get out you are a resident of whatever state you live in. No paperwork to fill out, etc. So if I decide to move to Maine when I retire, I am a Maine resident. So there would be no point for any state to give you grief about living there afterwards.

Pullinteeth
04-12-2013, 03:13 PM
Do they give you any grief about living there when you get out etc?

That is an interesting question. The answer is...sort of but not exactly. They don't care where you go when you get out BUT if you separate or are discharged, they will only pay to move your junk up to the estimated cost to move it to your HOR. You can still move further away, they just won't pay. If you retire, you get a free move to wherever the hell you want to go...

SomeRandomGuy
04-12-2013, 03:21 PM
Do they give you any grief about living there when you get out etc?

The only issue you might have is getting any or all of your state taxes back from MA. Since we are already in April you have paid at least 3 months worth of taxes to MA. Thhe IRS and most states require the AF to make quarterly tax payments. Your money has already been sent to MA. If you want it back you have to deal with the state. They may ask you what date you decided that you intended not to return. They may want some sort of verification of that. For example they may wantt o know when you registered to vote in the new state or when you licensed you car in the new state. They may also simply accept the DD2058 as prrof. Either way worse case scenario they keep your first 3 months of taxes and you are tax free for the rest of the year.

For what it is worth I always noticed that most people in the AF are "residents" of three states. Texas, Alaska, and Florida. Texas and Florida have no income tax and Alaska is also not an income states and has the added bonus of paying residents for allowing oil companies to pillage the state (there are extra requirements to get that bonus though).

VFFTSGT
04-12-2013, 03:28 PM
The only issue you might have is getting any or all of your state taxes back from MA. Since we are already in April you have paid at least 3 months worth of taxes to MA. Thhe IRS and most states require the AF to make quarterly tax payments. Your money has already been sent to MA. If you want it back you have to deal with the state. They may ask you what date you decided that you intended not to return. They may want some sort of verification of that. For example they may wantt o know when you registered to vote in the new state or when you licensed you car in the new state. They may also simply accept the DD2058 as prrof. Either way worse case scenario they keep your first 3 months of taxes and you are tax free for the rest of the year.

For what it is worth I always noticed that most people in the AF are "residents" of three states. Texas, Alaska, and Florida. Texas and Florida have no income tax and Alaska is also not an income states and has the added bonus of paying residents for allowing oil companies to pillage the state (there are extra requirements to get that bonus though).

I changed it one month into the year...

All I did was file taxes with the original state as a part year resident because your W-2 will reflect that you were a resident there at least part of the time since you did pay some taxes to the state.

Your taxable income for the state you are leaving will only be for those months that you were considered a resident.

Sergeant eNYgma
04-12-2013, 03:59 PM
The only issue you might have is getting any or all of your state taxes back from MA. Since we are already in April you have paid at least 3 months worth of taxes to MA. Thhe IRS and most states require the AF to make quarterly tax payments. Your money has already been sent to MA. If you want it back you have to deal with the state. They may ask you what date you decided that you intended not to return. They may want some sort of verification of that. For example they may wantt o know when you registered to vote in the new state or when you licensed you car in the new state. They may also simply accept the DD2058 as prrof. Either way worse case scenario they keep your first 3 months of taxes and you are tax free for the rest of the year.

For what it is worth I always noticed that most people in the AF are "residents" of three states. Texas, Alaska, and Florida. Texas and Florida have no income tax and Alaska is also not an income states and has the added bonus of paying residents for allowing oil companies to pillage the state (there are extra requirements to get that bonus though).

Yep, formerly a Virginian switched to FL with the quickness when I got here...

giggawatt
04-15-2013, 06:39 AM
Thanks for all the input. I'm not going to change my HOR but I am seriously considering changing my legal residence.

SRG, I'm not worried about getting any taxes back from MA. I hardly ever get anything back anyway. Last year I got a whopping $2 refund but had to pay to file. This year I got $16 but have to pay to file.

grimreaper
04-15-2013, 08:22 AM
Thanks for all the input. I'm not going to change my HOR but I am seriously considering changing my legal residence.

SRG, I'm not worried about getting any taxes back from MA. I hardly ever get anything back anyway. Last year I got a whopping $2 refund but had to pay to file. This year I got $16 but have to pay to file.

I have always thought it is absolutely ridiculous that States who have income taxes can still make military members who aren't even living there pay. What services are they providing you for those tax dollars? I'm sure they love generous people like you.

SomeRandomGuy
04-15-2013, 12:33 PM
I have always thought it is absolutely ridiculous that States who have income taxes can still make military members who aren't even living there pay. What services are they providing you for those tax dollars? I'm sure they love generous people like you.

I agree with you on this. I think their basic premise though is that they only require you to pay taxes if you plan on returning someday. The idea of the Soldiers and Sailors Civil Service Relief Act (SSCSR) is that being in the military should not force you to pay taxes due to orders. It is based on the assumption that when you leave the military you plan to return from where you came from. I guess some states think you should pay them to take care of things while you are gone. Sort of like a babysitting fee.


Here in Ohio they also have a very interesting tax law. Most municipalties charge a city income tax on top of state tax (military are exempt). The interesting part is that Ohio law allows a city to collect tax from you if you work in their city even if you do not live there. You are allowed to deduct any taxes paid to the city where you actually live but in the end they can still collect the difference. Kind of a strange law if you ask me. I understand the fact that if you work in the city you are using their roads and to a certain extent their police and fire. The only thing is that you are also supporting their school district and your child would not even be eligble to attend.

Rainmaker
04-15-2013, 08:06 PM
Rainmaker always change his legal residence whenever he change HORs