Residency and Taxes.... Out of state. (pay, vehicle, income, Arizona)

[SmurfOnABoat]

Ok, I am usually up on all my info. I try to do every bit of research before I post questions. I will be seeking consultation from a professional in this area, but before I get that far maybe that person I browsing these boards and can help out!

I have owned houses in Michigan and Arizona simultaneously. Just a few months ago I switched my permanent address to Arizona because I sold my house here but I still live and work in Michigan (I live with someone).

Last year (2012) I am not worried about because my main residence was here in Michigan for the majority of the year. My concern is 2013 where I will spend a good majority of the year here in Michigan before I officially make the move to Arizona. With Arizona as my primary residence and Michigan as my home/work state for now, I am not sure how this will work.

Arizona is now my official home, all documents including license, vehicle registration and voter information is in Arizona. I will remain in Michigan for probably 8-9 months for 2013 before changing states. I am assuming I will pay income tax here in Michigan but also have to file state taxes in Arizona because of the residency.

I am just trying to prevent any sort of legal entanglements. So any insight would be helpful. I am heading out west in less than a month and will speak with some attorneys while I am in town. I will also be scheduling some appointments to meet with one here in Michigan.

Thanks in advance!

PS. Anything else that I am not thinking of, please bring it to my attention. This is not just related to taxes, anything legal I may need to know.

[stahltkd]

Double check with your car insurance that you're covered while you're in MI. I know that Florida requires in state insurance if you spend more than 3 months in the state.

When we moved to Florida - we used Turbotax to do our taxes - (most tax preps have this) it will ask if you have out of state income and will bring up those forms for you.

[MrRational]

Originally Posted by SmurfOnABoat

My concern is 2013 where I will spend a good majority of the year here in Michigan
Arizona is now my official (primary) home...
I will remain in Michigan for probably 8-9 months...

I am assuming I will pay income tax here in Michigan
but also have to file state taxes in Arizona because of the residency.

I am just trying to prevent any sort of legal entanglements.

It'll be about tightening up the meaning behind the phrasing you have been using.

When you know which state is where you spend the actual majority of your time...
and you can calculate which state is where you earned the actual majority of your money..
...then you can act.

Until then all you can do is plan and speculate.

Anything else that I am not thinking of, please bring it to my attention.
This is not just related to taxes, anything legal I may need to know.

As mentioned... voter registration, health insurance, vehicle registration & insurance.

good luck with the changes.

[SmurfOnABoat]

Originally Posted by MrRational

It'll be about tightening up the meaning behind the phrasing you have been using.

When you know which state is where you spend the actual majority of your time...
and you can calculate which state is where you earned the actual majority of your money..
...then you can act.

Until then all you can do is plan and speculate.

As mentioned... voter registration, health insurance, vehicle registration & insurance.

good luck with the changes.

I will for certain remain in Michigan for at least 8 months. So for 2013 2/3 of time will be spent in Michigan and 1/3 of my time in Arizona. My income will come 100% from Michigan for 2013. Once I move to Arizona I will not work again until Jan 1, 2014.

So all of my money will be earned in Michigan.

I will most definitely have to file Michigan Income Tax, and I am assuming I will also have to file Arizona Income Tax, as it is stated in their tax information:

"Residents
You are a resident of Arizona if your domicile is in Arizona.
Domicile is the place where you have your permanent home.
It is where you intend to return if you are living or working
temporarily in another state or country. If you leave Arizona
for a temporary period, you are still an Arizona resident while
gone. A resident is subject to tax on all income no matter
where the resident earns the income."



Meaning behind my phrasing:

My residence in Arizona is my primary residence on paper. I will have NO address in Michigan on paper, no mail in Michigan. The only address and residence attached to my name is my address in Arizona. I am renting a portion of a house from a friend here in Michigan. Not linked to my name at all, nothing, zero in Michigan on paper. Arizona is my Primary and Permanent residence.

Thanks!

[hml1976]

Do you have a renter or is your Arizona house empty? I will tell you that my husband worked from Tennessee (at our house) for a company in NYC and NYC came after us for state and city taxes, even though we lived in tn and had no residence in NYC. We eventually won but had to pay taxes for every day that my husband was in the New York office working.

We now live on the washington/ Oregon border and because Washington doesn't have state income tax, Oregon goes to extraordinary lengths to make sure that Washington "residences" are legit. I've heard that they even check with utility companies to see if the names match up.

[SmurfOnABoat]

hml, there is no renter in my Arizona house and I do not intend on having one.

I am assuming I will be filing taxes in both states, just not certain as to how paying goes. I am guessing there is no "waivers" like when you buy a car out of state and pay their sales tax, that it is honored in your home state as paid. I am sure income tax does not work like that (but I do not know, just making an assumption). So I will be prepared to pay in both states if I have to.

[MrWillys]

My tax guy just asks me how many days I was in California, and how many in Nevada.