State Taxes in USA

[Journeys End]

I will be cruising for over 183 days next year. Will I still owe state taxes, in my case NJ, if I can establish that I have been out of state for the requisite amount of time. Or, do I have to buy another property in a non-tax state, i.e. Florida, to avoid my NJ state taxes? It seems that I should not have to purchase something, just to avoid state taxes. Does anyone have any experience with this type of scenario? Thanks much.

[dwedeking2]

I moved to Las Vegas for a period of time to set up residency (0% income tax rate) before moving out of the country. I rented so didn't have to purchase anything. I'm not sure the minimum time required, I stayed there a year but the residency wasn't the sole reason I was there so didn't care about a minimum. I'm sure you could do the same in Florida (or South Dakota, another vagabond friendly state).

[a64pilot]

You can establish Fl as your state of residence, it has no State Tax on income. I assume though that you will not be working in NJ, cause I think if you are paid in a State, you owe that State tax, but I am no tax expert.
Do you have a CPA?

I am establishing Fl as my Residency State through a mail forwarding service

[Cotemar]

Originally Posted by a64pilot

You can establish Fl as your state of residence, it has no State Tax on income. I assume though that you will not be working in NJ, cause I think if you are paid in a State, you owe that State tax, but I am no tax expert.
Do you have a CPA?

I am establishing Fl as my Residency State through a mail forwarding service

Which mail forwarding service are you using. Do you like them?

[John_Trusty]

May I suggest that asking a sailing forum for tax advice is similar to asking for medical advice? "I'm not a doctor, but I think that mole in your photo is similar to mine, which was benign." Perhaps someone has similar experience (and is being honest), and gives accurate advice, but likely not. If you are trying to save several thousands of dollars in state income tax, spend $500 with a local CPA or attorney to get accurate, professional advice on your situation. If I was sued by the state revenue office for tax fraud, I would want a better defense than, "John_Trusty on the internet said I was good to not pay taxes!" BTW: I think that a "mail drop" to establish residency would be viewed as a tax fraud - think about it.

[Cotemar]

Originally Posted by John_Trusty

BTW: I think that a "mail drop" to establish residency would be viewed as a tax fraud - think about it.

Your a cruiser living on a boat out in the ocean, with no land based assets.
Do you have a better way to get your mail?

[Tetepare]

Originally Posted by Cotemar

Your a cruiser living on a boat out in the ocean, with no land based assets.
Do you have a better way to get your mail?

[Training Wheels]

Originally Posted by a64pilot

You can establish Fl as your state of residence, it has no State Tax on income. I assume though that you will not be working in NJ, cause I think if you are paid in a State, you owe that State tax, but I am no tax expert.
Do you have a CPA?

I am establishing Fl as my Residency State through a mail forwarding service

I was told you can no longer use a. Mail forwarding service to establish residence in a state. You must have a physical residence address, but it can be a relative or somebody you know that will let you use your address.
We're working on this ourselves.
Anybody know anybody that will let us use their address!

[Dave22q]

If you live OR wok in an income tax state you will need to file and pay state income tax. If you do not live in the state but work there you can exempt money earned when out of state but residents have no such option. Tax writers are getting smarter every year and avoidance keeps getting tougher.

[nextis12]

Originally Posted by John_Trusty

May I suggest that asking a sailing forum for tax advice is similar to asking for medical advice? "I'm not a doctor, but I think that mole in your photo is similar to mine, which was benign." Perhaps someone has similar experience (and is being honest), and gives accurate advice, but likely not. If you are trying to save several thousands of dollars in state income tax, spend $500 with a local CPA or attorney to get accurate, professional advice on your situation. If I was sued by the state revenue office for tax fraud, I would want a better defense than, "John_Trusty on the internet said I was good to not pay taxes!" BTW: I think that a "mail drop" to establish residency would be viewed as a tax fraud - think about it.

Kinda of funny, don' take tax advice from someone on the internet and by the way you are committing fraud...

You may still have to file a NJ state return even if you are considered a non-resident. If you receive income from New Jersey that exceeds a certain amount. From the New Jersey website. NJ Division of Taxation - Income Tax - Nonresidents

Nonresidents who receive income from New Jersey sources and who have total income from all sources (both inside and outside New Jersey) that exceeds the filing threshold amount for their filing status must file a New Jersey nonresident income tax return. The filing threshold amount is $20,000 for those who file as married/CU couple filing joint return, head of household, or qualifying widow(er)/surviving CU partner. The threshold is $10,000 for those filing married/CU partner filing separately or single. You are a nonresident for tax purposes if:
You did not maintain a "permanent" home in New Jersey; and
You did maintain a "permanent" home outside of New Jersey; and
You did not spend more than 30 days in New Jersey.
Also, you are a nonresident if:
New Jersey was not your domicile, and you spent 183 days or less here; or
New Jersey was not your domicile, and you spent more than 183 days here, but you did not maintain a "permanent" home here.
In some cases, a nonresident may be required to file both part-year resident and nonresident returns. If you were a resident of New Jersey for part of the tax year and moved out of the State but continued to receive income from a New Jersey source, or if you moved into the State during the tax year but received income from a New Jersey source prior to moving to New Jersey, you must file both part-year resident and part-year nonresident returns if your gross income from all sources for the entire year exceeds the filing threshold amount for your filing status.

[dwedeking2]

There is a firm in South Dakota that I know a lot of RVers and expats living in Mexico use. I just went to their website and the one night stay at their place sets residence (for driver's license and registration) and according to their FAQ the federal government requires you to stay there one night every 5 years to keep your license. This is about more than tax avoidance, but also ease of compliance with things like car registration, mail and driver's license.

If you do work in a state that has income tax you're going to get dinged. Luckily I'm close enough to the end of my career to just not go there.

[Journeys End]

No duh!! I was just asking what others are experiencing!!

[Hud3]

When we moved to Nevis in the Caribbean, we used St Brendan's Isle, a mail forwarding service in Green Cove Springs, Florida. Besides forwarding mail they also provide the service of applying for resident status in Florida. It's inexpensive, easy and perfectly legal, and allows you to vote in federal and Florida elections by absentee ballot, and to obtain a Florida driver license. The Clerk of the Court in Clay County, FL, is completely aware of this and will not call you for jury duty if you have a SBI personal mailbox address.

You don't have to physically reside in Florida, nor own real estate to become a Florida resident. The only restriction is that you cannot reside in another state for more than half the year. Florida has no personal income tax and no death tax, so it's a great state to be a resident of if you actually live outside the US.

[Journeys End]

Thanks

[Training Wheels]

Originally Posted by Hud3

When we moved to Nevis in the Caribbean, we used St Brendan's Isle, a mail forwarding service in Green Cove Springs, Florida. Besides forwarding mail they also provide the service of applying for resident status in Florida. It's inexpensive, easy and perfectly legal, and allows you to vote in federal and Florida elections by absentee ballot, and to obtain a Florida driver license. The Clerk of the Court in Clay County, FL, is completely aware of this and will not call you for jury duty if you have a SBI personal mailbox address.



You don't have to physically reside in Florida, nor own real estate to become a Florida resident. The only restriction is that you cannot reside in another state for more than half the year. Florida has no personal income tax and no death tax, so it's a great state to be a resident of if you actually live outside the US.

I just talked to SBI last week. They told me I had to have a residence address (relative, friend, etc.) to get residence and a Florida drivers license. Any body live in Florida?