What determines state residency?

[The Walk of the Penguin Mich]

Dec, 2011, I got ill and wound up moving (what I thought) temporarily to another state for treatment and care.  My intention was to return to my job, so while I was ill I continued to pay rent and maintain residency in KY (including signing another lease).  When it was determined that I could not physically return to my job, I made arrangements to move permanently to where I was receiving care.

So Jan. of 2013 I needed to renew my driver's license and did in WA.  This included registering to vote.  However, my lease was not up until June of 2013 so I continued to pay rent until the end of the lease term, and then I moved my household to WA.

Which event determines state of residency?

[Opti]

Mich, whatever state you are a resident per taxes, will determine it.
(Short answer)


Paying money for a lease does nothing for residency.
How many days did you live in WA and how many did you live elsewhere?

[Deleted]

I think she is probably trying to determine residency for taxes not the other way around.

[mwcpa]

Residency in a state for tax purposes are determined by a number of potentially complicated rules. The rules in one state may be different in another.

Looking at the two states in question, specifically Kentucky. www.lrc.ky.gov/kar/103/017/010.htm

"Section 1. Resident. "Resident" means any individual domiciled within Kentucky on the last day of the taxable year and includes any individual who spends more than 183 days in Kentucky and maintains a place of abode in Kentucky during this period. All other individuals are nonresidents.

Section 2. Nonresident Requirements. To qualify as a nonresident, the taxpayer shall submit proof of his bona fide intention to reside permanently elsewhere before the last day of the taxable year, and that he has spent less than 183 days in Kentucky. If any person who has moved out of Kentucky returns to Kentucky within six (6) months from the time he had moved, it shall be construed that the removal from Kentucky was not intended to be permanent and such person shall be considered a resident during the time in which his abode may have been elsewhere. Any person changing his domicile during a taxable year may also be required to furnish evidence of compliance with requirements of the other state with respect to taxation and qualifications as a resident citizen. Persons residing in Kentucky and living part of the year in other states will be considered residents of Kentucky unless it can be shown that abode in another state is of permanent nature, and that less than 183 days were spent in Kentucky.

Section 3. Domicile. Generally, a domicile is the place where an individual has established permanent resident. A domicile once obtained continues until a new one is acquired. Domicile is not changed by removal for a definite period or for incidental purposes. To constitute a change, there must be intent to change, actual removal, and a new abode." 

Seems to me that, based on the facts presented, as of January 1, 2013, as you had no intention to return to Kentucky, did not return to Kentucky that you are not longer a resident of that state for tax purposes.  The changing of a driver's license and voting registration are two of many tests used by state tax agencies to determine residence.  Some look at days in and out, having a permanent place of abode, where the things that are most important and most personal are kept, the size of a home compared to others, where your social, religious and other groups are, etc.  It can get really complicated.

[Peace77]

Since you actually lived in Washington, have your driver's license and voter registration there, it appears that you have been a resident of Washington and do not owe any state income tax for 2013.

[The Walk of the Penguin Mich]

Feb 2, 2014 7:16:08 GMT -5 ArchietheDragon said:

I think she is probably trying to determine residency for taxes not the other way around.

Exactly.

I spent exactly 10 days in KY in 2013.  3 days in March, and a week at the end of June to move me out.  I have airline tickets verifying this too.  So it sounds like I am not considered a resident of KY for 2013 by all possible means.

Now, to complicate the issue, I receive disability from my former employer in KY.  Does this change things?  I know there should be no issue with my SSDI, since KY taxes are not being taken for that but KY state tax is being taken out for my other disability policy.

[justme]

When I did my taxes it asked if I earned any money in another state, I would assume that's where you would put the disability payments from KY.

[Peace77]

But, Washington state doesn't have a state income tax so they aren't going to care if income was earned in another state.  

I wonder if you can get a refund of taxes withheld by Kentucky.

[mwcpa]

more than likely the payments from the Kentucky employer is sourced to Kentucky.... so Kentucky may be able to tax it, not matter where you lived....

[The Walk of the Penguin Mich]

Feb 2, 2014 22:46:37 GMT -5 mwcpa said:

more than likely the payments from the Kentucky employer is sourced to Kentucky.... so Kentucky may be able to tax it, not matter where you lived....

So I would have to pay nonresident tax on my disability acquired from my KY employer for 2013 (and as long as I receive it)?  Does this obligate me to pay KY nonresident tax on my SSDI?

Does it matter that it is not directly from my employer, but a third party (PNC)?

[mwcpa]

"So I would have to pay nonresident tax on my disability acquired from my KY employer for 2013 (and as long as I receive it)? Does this obligate me to pay KY nonresident tax on my SSDI?

Does it matter that it is not directly from my employer, but a third party (PNC)?"

It seems that the compensation from the employer is associated with work done in Kentucky.

SSDI is more than likely not taxable to Kentucky and if is was, as you are not in Kentucky they cannot tax it, or your interest, dividends, etc. 

Be careful that you complete the non resident tax filings properly.. it's not as simple as filing a form and say I made X in wages....

[The Walk of the Penguin Mich]

That's what I figured, thanks.

I have filed the nonresident forms for KY in the past, when I moved there from TX and did not have enough time there yet to be considered a resident.  However, this was in the dark ages where I had to fill out the forms I picked up from the library!