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This is more for active duty legal specialists. What's behind switching state of residence? I know quite a few members who switched theirs for the sake of not paying state taxes. So what happens when they return to their home state after 20 years, do they pay back taxes?
Also objectively speaking how fair is it that being a federal military 'employee', some pay state taxes while others don't, while serving in the same pool of crap together? Help me figure out this 'pool of crap'
Also objectively speaking how fair is it that being a federal military 'employee', some pay state taxes while others don't, while serving in the same pool of crap together? Help me figure out this 'pool of crap'
Edited >1 y ago
Posted >1 y ago
Responses: 11
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PO1 (Join to see)
I kind of figured! Benefits don't drastically vary from state to state for vets. But tax amount does. New England is pretty notorious for large state withholds from SMs. Definitely not moving up there
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LTC Paul Labrador
I entered the Army with FL residency, so I was not paying taxes to begin with so I never bothered to change it. But I know a lot of my friends and collegues switched their residency as soon as the PCS'd to a state that didn't have state income taxed.
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PO1 (Join to see)
Makes perfect sense, right? I mean how can IRS go after them after they retire or separate? Just wondering
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LTC Paul Labrador
For back taxes? No. Remember, military are the loophole to tax laws. We pay income tax to whichever state we are legal permanent resident of.... which is why whenver I buy a car I always get it tagged and titled out of FL. I am no way trying to even hint that I've changed residency.
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Buddy, when i finished my job training in the Army, i went to texas, claimed resident status, and then went to my duty station in Korea.
Do not feel guilty, be wise and work the system to the best of your ability so you can keep more of your paycheck.
They knew i was in the Army, they knew what i was doing when i wanted thr ID. They asked me if i have "INTENT" to return to texas when i was done with active duty. I said yes, but guess what... it did not work out that way. In fact, i only set foot in texas once more in 10 years.
Do not feel guilty, be wise and work the system to the best of your ability so you can keep more of your paycheck.
They knew i was in the Army, they knew what i was doing when i wanted thr ID. They asked me if i have "INTENT" to return to texas when i was done with active duty. I said yes, but guess what... it did not work out that way. In fact, i only set foot in texas once more in 10 years.
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Capt (Join to see)
I started out my military career in FL, so while I was there, became a registered voter and got a DL. While there, the DMV in FL told me I needed to have car titled and registered in FL for it to be true. Since our unit had a proxy personnel/finance facility, I changed back to SC residency. Is it true I can switch back to FL at free will and get my spouse to do the same?
Most peers told me due to the military, all you have to do is express "intent" to live there after you get out of the service and you're good. I should mention my HOR is SC.
Most peers told me due to the military, all you have to do is express "intent" to live there after you get out of the service and you're good. I should mention my HOR is SC.
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My Home of Record state was NC and has one of the highest tax rates. My (now-ex) wife was from PA, which did not tax military not serving in the state. I changed my legal residence to PA to avoid it. I feel no guilt about that.
I think military pay and benefits should be tax free anyway.
I think military pay and benefits should be tax free anyway.
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CMDCM Gene Treants
Once you retire, military Retired Pay is no longer taxable by the State of NC if you are a resident of this State.
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CW5 Sam R. Baker
MAJ (Join to see) , my ex-mother in law agrees with you on federal taxes and the IRS when it comes to military pay and bennies! My State of residence is Texas (where I joined) and it is state tax free, however I hear that the large numbers of retirees seek states with retirement tax grace. I am not sure if that is the way to go or not, but I will be looking in the future for a way to help make my retirement $$$ work better for me.
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