US state residency

My accountant advised me that if I gave up residency in my home state (PA) I would not have to pay state/local taxes anymore. In the short term, this seems nice as it’ll save some money and hassle come tax time. However, I feel that I’ll be moving back to the US in a couple of years. Does anyone know if giving up residency is advisable/a terrible idea? Is it a nightmare to establish residency in another US state if you don’t have residency in one? Thanks.

Establishing residency in another state hardly ever relys on your previous residency elsewhere. The only things you need to remember to keep in the US that would be usefull for re-establishing residency in any state are:

Credit History (Knows no state boundaries)
Rental History (keep your records and contact info)
Mortgage History (Keep your records and contact info)

That is all I can really think of.

Things like utilities, vehicle registration, etc. all have to start from scratch anyways when you start up in a new state…so dont worry about those.

Really there isnt anything to worry about.

mhinson -
Giving up/establishing residency in another state in the USA is of no consequence at all.
Simplest and easiest thing in the world. Just move somewhere else and start your life.
Unlike some countries there is no require to “as first” or “write your name in our book when yo get here.”

Any pertinent records, as the Quarters mentioned, are easily transferable. I would add to that the need to change drivers license to your new state. If its still valid its a simple matter of turning in your old and them sending you a new one. If your DL has expired, if it been less than 5 years or so, it just a matter of taking the written test again. (and speaking from experience - they usually give you 3 trys to get it right)

Don’t worry a bit about this.

I just re-read your post and something concerns me.

When you say [quote]Does anyone know if giving up residency is advisable/a terrible idea?[/quote]

do you mean to say that you are considering giving up US residency? That would be a pretty big step and a mistake in my humble opinion. States don’t have “residency” that you are “sworn to” like a country. So there really is no way to give up residency in a state prior to establishing a new residential address in another state.

Even now, in Taiwan, I am still am considered a resident of Oregon - as far as the Federal Government is concerned. That wont change until I establish a new address elsewhere in the states.

I think it is a good idea too to have an address you can still use in the US (Family, Friends, ETC). I use my family’s address for important mail like bank statements (even though I really don’t nee them thanks to e-banking…but my bank wont let me stop the paper statements :loco: etc.) You never know when it will come in handy to have one.

I’m not in any way considering giving up US residency, but I did not know if state and US residency could be de-linked for tax purposes. Think I’ll just keep using the PA address, like Quarters said, for US mail, etc. Thanks very much for your thoughts.

There’s various levels of ‘residency’ as far as states are concerned in the US, and the rules vary state by state so you’d need to investigate what the rules are in your home state.

As far as establishing residency for voting or for getting a driver’s license, all states I’m aware of let you do this as soon as you have established a household in the state by buying/renting and occupying a residence with the intent of making it your primary home. So as far as worrying about how you’d fit back in if you go back home, it won’t be a problem.

With regard to voting rights, US citizens living abroad are considered to still have voting rights in the US jurisdiction where you were last a resident. So you can legally continue to vote via absentee ballots in your last location until you establish other US residency. This right does not otherwise affect whether you are considered a resident.

As for taxes, the rules vary all over the map, so you should carefully check the rules for your home state to see what applies. When moving to another state you are immediately considered a non-resident in your previous location as soon as you establish the new residency. However, the rules can be much more complex when you move abroad, and some states will try to tax you as a resident for up to two years after leaving. Because this varies by state, you will need to check what rules apply to your situation. Sometimes it depends on how much time each year your spend in state, or sometimes it depends on whether you maintain property, bank accounts, a driver’s license, etc. in the state after leaving.

That said, states are generally not as aggressive as the IRS in pursuing these matters.

In some states there are state supported universities or colleges which give discounted tuition to in-state students. They usually have minimum requirements on length of residency before you are considered an in-state student. If you are thinking about going back to school, this may be a concern.

Hi, I don’t know if it’s too late to chime in on this…

As far as State residency, you just want to keep in mind:

  1. the tax laws for your state, and
  2. if you plan to go to college there in the future. If you do, you might want to retain your state residency in order to qualify for in-state tuition.

[quote=“Persephone”]Hi, I don’t know if it’s too late to chime in on this…

As far as State residency, you just want to keep in mind:

  1. the tax laws for your state, and
  2. if you plan to go to college there in the future. If you do, you might want to retain your state residency in order to qualify for in-state tuition.[/quote]

Persephone is exactly on target. It is a simple matter to change your state residency. Most state laws require that you simply have “a present state of mind to make xxxx your home state”. Some evidence is usually required. A rental reciept, a driver’s licence, purchase of real property, enrollment of children in the state’s schools, registration to vote, etc. I have even seen an affidavit filed with the state court auditor’s office as an affidavit, that sufficed. Make a trail. You may need it. Usually, this is not scrutinized to a high degree. Certainly you need to consider the State’s tax laws. Many states do not have a state income tax and you can easily step in deep caca by claiming residency in such a state. Check the state websites for their requirements of taxation and choose your state accordingly. Their is nothing immoral nor illegal in choosing a state that is most agreeable to your purposes. Just plan on going back there when you want. After all, it is your planned abode.

[quote=“Persephone”]Hi, I don’t know if it’s too late to chime in on this…

As far as State residency, you just want to keep in mind:

  1. the tax laws for your state, and
  2. if you plan to go to college there in the future. If you do, you might want to retain your state residency in order to qualify for in-state tuition.[/quote]

Just FYI for anyone that needs it:

The State Of California will recognize you for in-state tuition (resident tuition) (at any public College or University) as long as you can prove you graduated from a highschool within California. This is true even if you have since moved out of California and are returning to go to school. I know because I did it.

I’ve always wished that the U.S. states could somehow be sued over the “state citizenship” thing. There’s so much ambiguity over it–they don’t issue a card or anything, and there’s no way to officially confirm whether one is a state citizen. It is entirely possible to be “stateless” if you go to a state for the purpose of attending college (often this is disallowed as a reason, since otherwise nobody would ever pay “out of state” tuition), or for that matter if you move overseas. Americans living in Taiwan are able to vote in state elections (they choose the state, apparently with total freedom) but there seems to be some ambiguity over whether they qualify as the “constituents” of the politicians thus elected. (Some members of congress apparently will not deal with overseas Americans, and of course there is no representative dedicated specifically to them.)

Technically they are only allowed to register to vote in the district where they most recently were resident. And technically they are only guaranteed to be able to vote for federal offices. Reality is that voter registration is not closely scrutinized in many areas and most places allow overseas Americans to vote even on state and local issues.

Washington State has no state income tax. Residency basically requires an address there. I’m proud to be a registered voter in a blue state! It’s also the shortest flight back to the USA, apart from Alaska or Hawaii.