DC residency, taxes, etc, after buying a second home in a no-tax state

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought a home in a low tax state during covid and spend almost all of our time here. Still, I would never give up my DC residency because the benefits of being a resident are much more generous than just about anywhere else. You never know what kind of help you might need in the future.

I’m also very glad that I’m not so cheap and tight that I have to make residency decisions on things like state taxes. It’s pathetic.

You do realize that the state you’re living in could go after you for unpaid tax? If you live there more than six months a year, you owe tax there. They don’t care that DC’s taxes are higher. Your residence is where you live the majority of the year. Period.

They have no way of knowing.

Really? Are you parking your car with DC tags in front of your house? Tax enforcement in VA, for example, has been known to drive around and take note of cars with out of state plates that are routinely parked in front of homes.

Are you working remotely? Your employer could be (and should be) monitoring the geographic location from which you are signing in for work. Remote work creates tax and compliance implications for your employer as well as yourself. Not to mention, the employer is responsible for withholding tax for the state in which you are actually working. Most have the IT Department check periodically.

There are other ways to be caught, as well. Of course, there is the fact that it’s illegal, as well as unethical, but you don’t care about that.

I don’t work. I retired early, nearly a decade ago. My second home is on 7 acres and has a garage. It would be rather difficult for “tax enforcers” to see my car.

Yet you said you were keeping DC residency so you can take FMLA leave?

That wasn't me.

[Anonymous]

After I become a Va., resident, do I have to officially inform dC that I'm no longer a District resident?

[Anonymous]

Anonymous wrote:After I become a Va., resident, do I have to officially inform dC that I'm no longer a District resident?

This is a good question. I've looked into it and I couldn't find anything. If you pull a drivers license in a new state, you will be required to forfeit your current DC license. I'm guessing that the DMV records are shared across states? I have no idea.

If you want to sever DC residency, you really need to do it all - car registration, drivers license, voter registration, changing address for all bills/bank accounts/investments accounts need to be moved to Virginia. Do not leave any paper-trail in DC.

In DC, you can cancel your voter registration here: https://www.dcboe.org/Voters/Register-To-Vote/Cancel-Voter-Registration

Definitely do that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought a home in a low tax state during covid and spend almost all of our time here. Still, I would never give up my DC residency because the benefits of being a resident are much more generous than just about anywhere else. You never know what kind of help you might need in the future.

I’m also very glad that I’m not so cheap and tight that I have to make residency decisions on things like state taxes. It’s pathetic.

You do realize that the state you’re living in could go after you for unpaid tax? If you live there more than six months a year, you owe tax there. They don’t care that DC’s taxes are higher. Your residence is where you live the majority of the year. Period.

They have no way of knowing.

Really? Are you parking your car with DC tags in front of your house? Tax enforcement in VA, for example, has been known to drive around and take note of cars with out of state plates that are routinely parked in front of homes.

Are you working remotely? Your employer could be (and should be) monitoring the geographic location from which you are signing in for work. Remote work creates tax and compliance implications for your employer as well as yourself. Not to mention, the employer is responsible for withholding tax for the state in which you are actually working. Most have the IT Department check periodically.

There are other ways to be caught, as well. Of course, there is the fact that it’s illegal, as well as unethical, but you don’t care about that.

I don’t work. I retired early, nearly a decade ago. My second home is on 7 acres and has a garage. It would be rather difficult for “tax enforcers” to see my car.

Yet you said you were keeping DC residency so you can take FMLA leave?

That wasn't me.

So you're breaking the law in your current state and paying DC taxes for no reason at all?

Bottom line is that it doesn't matter that you are paying taxes in the higher cost state -- you are breaking the law and there are many ways to be caught, and, if audited (by the IRS or the state) you better be prepared to prove that you were not in the state where you've actually been residing for more than 182 days per year. Everyone I know who keeps multiple residences carefully documents their whereabouts with gas or airline receipts, etc.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought a home in a low tax state during covid and spend almost all of our time here. Still, I would never give up my DC residency because the benefits of being a resident are much more generous than just about anywhere else. You never know what kind of help you might need in the future.

I’m also very glad that I’m not so cheap and tight that I have to make residency decisions on things like state taxes. It’s pathetic.

You do realize that the state you’re living in could go after you for unpaid tax? If you live there more than six months a year, you owe tax there. They don’t care that DC’s taxes are higher. Your residence is where you live the majority of the year. Period.

They have no way of knowing.

Really? Are you parking your car with DC tags in front of your house? Tax enforcement in VA, for example, has been known to drive around and take note of cars with out of state plates that are routinely parked in front of homes.

Are you working remotely? Your employer could be (and should be) monitoring the geographic location from which you are signing in for work. Remote work creates tax and compliance implications for your employer as well as yourself. Not to mention, the employer is responsible for withholding tax for the state in which you are actually working. Most have the IT Department check periodically.

There are other ways to be caught, as well. Of course, there is the fact that it’s illegal, as well as unethical, but you don’t care about that.

I don’t work. I retired early, nearly a decade ago. My second home is on 7 acres and has a garage. It would be rather difficult for “tax enforcers” to see my car.

Yet you said you were keeping DC residency so you can take FMLA leave?

That wasn't me.

So you're breaking the law in your current state and paying DC taxes for no reason at all?

Bottom line is that it doesn't matter that you are paying taxes in the higher cost state -- you are breaking the law and there are many ways to be caught, and, if audited (by the IRS or the state) you better be prepared to prove that you were not in the state where you've actually been residing for more than 182 days per year. Everyone I know who keeps multiple residences carefully documents their whereabouts with gas or airline receipts, etc.

IRS doesn't care about state tax issues. Not part of their jurisdiction or mandate. The state could audit you, however.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought a home in a low tax state during covid and spend almost all of our time here. Still, I would never give up my DC residency because the benefits of being a resident are much more generous than just about anywhere else. You never know what kind of help you might need in the future.

I’m also very glad that I’m not so cheap and tight that I have to make residency decisions on things like state taxes. It’s pathetic.

You do realize that the state you’re living in could go after you for unpaid tax? If you live there more than six months a year, you owe tax there. They don’t care that DC’s taxes are higher. Your residence is where you live the majority of the year. Period.

They have no way of knowing.

Really? Are you parking your car with DC tags in front of your house? Tax enforcement in VA, for example, has been known to drive around and take note of cars with out of state plates that are routinely parked in front of homes.

Are you working remotely? Your employer could be (and should be) monitoring the geographic location from which you are signing in for work. Remote work creates tax and compliance implications for your employer as well as yourself. Not to mention, the employer is responsible for withholding tax for the state in which you are actually working. Most have the IT Department check periodically.

There are other ways to be caught, as well. Of course, there is the fact that it’s illegal, as well as unethical, but you don’t care about that.

I don’t work. I retired early, nearly a decade ago. My second home is on 7 acres and has a garage. It would be rather difficult for “tax enforcers” to see my car.

Yet you said you were keeping DC residency so you can take FMLA leave?

That wasn't me.

So you're breaking the law in your current state and paying DC taxes for no reason at all?

Bottom line is that it doesn't matter that you are paying taxes in the higher cost state -- you are breaking the law and there are many ways to be caught, and, if audited (by the IRS or the state) you better be prepared to prove that you were not in the state where you've actually been residing for more than 182 days per year. Everyone I know who keeps multiple residences carefully documents their whereabouts with gas or airline receipts, etc.

IRS doesn't care about state tax issues. Not part of their jurisdiction or mandate. The state could audit you, however.

This. The IRS doesn't care.

I'm not going to get "caught," but if I ever am I'll just pay what I owe, if anything, and that will be that. It's not a big deal.

I'm in the state where I am right now for more than 182 days a year, I'm in DC far less than that, I pay my income taxes to DC and not here, and I don't care. So there.

[Anonymous]

switched to Va. from DC. Will save a bunch in taxes and my kids will save a lot more in estate taxes.

[Anonymous]

Anonymous wrote:switched to Va. from DC. Will save a bunch in taxes and my kids will save a lot more in estate taxes.

This is a big issue for me as well. I am still in DC but definitely have though of moving to Virginia because of the estate taxes.

I am guessing DC collects very little revenue from its estate tax but it discourages better off people, especially retirees, from staying or moving to DC. Another wrong headed move from our city council.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought a home in a low tax state during covid and spend almost all of our time here. Still, I would never give up my DC residency because the benefits of being a resident are much more generous than just about anywhere else. You never know what kind of help you might need in the future.

I’m also very glad that I’m not so cheap and tight that I have to make residency decisions on things like state taxes. It’s pathetic.

You do realize that the state you’re living in could go after you for unpaid tax? If you live there more than six months a year, you owe tax there. They don’t care that DC’s taxes are higher. Your residence is where you live the majority of the year. Period.

They have no way of knowing.

Really? Are you parking your car with DC tags in front of your house? Tax enforcement in VA, for example, has been known to drive around and take note of cars with out of state plates that are routinely parked in front of homes.

Are you working remotely? Your employer could be (and should be) monitoring the geographic location from which you are signing in for work. Remote work creates tax and compliance implications for your employer as well as yourself. Not to mention, the employer is responsible for withholding tax for the state in which you are actually working. Most have the IT Department check periodically.

There are other ways to be caught, as well. Of course, there is the fact that it’s illegal, as well as unethical, but you don’t care about that.

I don’t work. I retired early, nearly a decade ago. My second home is on 7 acres and has a garage. It would be rather difficult for “tax enforcers” to see my car.

Yet you said you were keeping DC residency so you can take FMLA leave?

That wasn't me.

So you're breaking the law in your current state and paying DC taxes for no reason at all?

Bottom line is that it doesn't matter that you are paying taxes in the higher cost state -- you are breaking the law and there are many ways to be caught, and, if audited (by the IRS or the state) you better be prepared to prove that you were not in the state where you've actually been residing for more than 182 days per year. Everyone I know who keeps multiple residences carefully documents their whereabouts with gas or airline receipts, etc.

IRS doesn't care about state tax issues. Not part of their jurisdiction or mandate. The state could audit you, however.

This. The IRS doesn't care.

I'm not going to get "caught," but if I ever am I'll just pay what I owe, if anything, and that will be that. It's not a big deal.

I'm in the state where I am right now for more than 182 days a year, I'm in DC far less than that, I pay my income taxes to DC and not here, and I don't care. So there.

It's fascinating that you complain about the lack of services in your actual state of residence, but you use the infrastructure and services that they do provide without paying for them. And you have no pangs of conscience about this at all. That's sociopathic behavior.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We bought a home in a low tax state during covid and spend almost all of our time here. Still, I would never give up my DC residency because the benefits of being a resident are much more generous than just about anywhere else. You never know what kind of help you might need in the future.

I’m also very glad that I’m not so cheap and tight that I have to make residency decisions on things like state taxes. It’s pathetic.

If you ever needed those benefits, you better believe they will question whether you are actually a resident if you are living in another state.

and what benefits? DC is bankrupt. What special things do you think a DC resident gets? DC Tag is a joke.

[Anonymous]

Anonymous wrote:

Anonymous wrote:switched to Va. from DC. Will save a bunch in taxes and my kids will save a lot more in estate taxes.

This is a big issue for me as well. I am still in DC but definitely have though of moving to Virginia because of the estate taxes.

I am guessing DC collects very little revenue from its estate tax but it discourages better off people, especially retirees, from staying or moving to DC. Another wrong headed move from our city council.

In my case, just transferred residency to the second home which - honestly - is where we began spending the majority of our time - although its pretty close. This cuts our state tax in half and reduces estate tax by a whopping 16 percent.

By the way, it was one of the smoothest in-person interactions I have ever had with government. The VA., DMV has an interactive guide that spits out a chart of the documents you need to bring. Everyone was pleasant. I gave over the docs, they punched a hole in my dc license and automatically switched my voter registration. The staffer apologized for the cumbersome process. I was like "you have no idea."

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought a home in a low tax state during covid and spend almost all of our time here. Still, I would never give up my DC residency because the benefits of being a resident are much more generous than just about anywhere else. You never know what kind of help you might need in the future.

I’m also very glad that I’m not so cheap and tight that I have to make residency decisions on things like state taxes. It’s pathetic.

You do realize that the state you’re living in could go after you for unpaid tax? If you live there more than six months a year, you owe tax there. They don’t care that DC’s taxes are higher. Your residence is where you live the majority of the year. Period.

They have no way of knowing.

Really? Are you parking your car with DC tags in front of your house? Tax enforcement in VA, for example, has been known to drive around and take note of cars with out of state plates that are routinely parked in front of homes.

Are you working remotely? Your employer could be (and should be) monitoring the geographic location from which you are signing in for work. Remote work creates tax and compliance implications for your employer as well as yourself. Not to mention, the employer is responsible for withholding tax for the state in which you are actually working. Most have the IT Department check periodically.

There are other ways to be caught, as well. Of course, there is the fact that it’s illegal, as well as unethical, but you don’t care about that.

I don’t work. I retired early, nearly a decade ago. My second home is on 7 acres and has a garage. It would be rather difficult for “tax enforcers” to see my car.

Yet you said you were keeping DC residency so you can take FMLA leave?

That wasn't me.

So you're breaking the law in your current state and paying DC taxes for no reason at all?

Bottom line is that it doesn't matter that you are paying taxes in the higher cost state -- you are breaking the law and there are many ways to be caught, and, if audited (by the IRS or the state) you better be prepared to prove that you were not in the state where you've actually been residing for more than 182 days per year. Everyone I know who keeps multiple residences carefully documents their whereabouts with gas or airline receipts, etc.

IRS doesn't care about state tax issues. Not part of their jurisdiction or mandate. The state could audit you, however.

This. The IRS doesn't care.

I'm not going to get "caught," but if I ever am I'll just pay what I owe, if anything, and that will be that. It's not a big deal.

I'm in the state where I am right now for more than 182 days a year, I'm in DC far less than that, I pay my income taxes to DC and not here, and I don't care. So there.

It's fascinating that you complain about the lack of services in your actual state of residence, but you use the infrastructure and services that they do provide without paying for them. And you have no pangs of conscience about this at all. That's sociopathic behavior.

Where did I complain?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought a home in a low tax state during covid and spend almost all of our time here. Still, I would never give up my DC residency because the benefits of being a resident are much more generous than just about anywhere else. You never know what kind of help you might need in the future.

I’m also very glad that I’m not so cheap and tight that I have to make residency decisions on things like state taxes. It’s pathetic.

If you ever needed those benefits, you better believe they will question whether you are actually a resident if you are living in another state.

and what benefits? DC is bankrupt. What special things do you think a DC resident gets? DC Tag is a joke.

My kids are out of college. We didn't move to DC until after they graduated.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I have rental properties in DC which are the main source of my income. Honestly after all the write offs my income state tax is under $5K/year. DC gives benefits like FMLA for example where you can get the city pay 6 weeks of ANNUAL leave to take care of a family member. I just took one and will do so next year. Also, DC has free preschools

Also the Obamacare healthcare options are better than in most states.

This is true of all blue cities/states — they are great places to live if you aren’t wealthy and qualify for government services. Meanwhile, the wealthy are leaving in droves. Enjoy it while it lasts — it’s unsustainable.

Not really. DC QMB income limit is 3X as high as any other states except Connecticut. The Medicaid plans are very good. It would cost a family of 3 more than $30K/year for less plans on the market just for the premium and deductible, not counting the copays.

[Anonymous]

*lesser*