Residency and Taxes

Forum|Forum|7 years ago
February 24, 2019
1 reply
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I own a home in CA and (might) consider that my permanent residence. I am moving to Maine for 3 years (temporary). I currently work for my CA job remotely but will be working in New Hampshire in a few months. What are my tax obligations? Do I file as a resident in CA, non-resident in ME and nothing in NH? Since the money will be made in ME while I’m working remotely for CA job, I am taxed by ME and claim a credit in CA so I’m not double taxes right? Once I start working in NH (but still living in ME and resident of CA) I shouldn’t have to file an income tax in NH since they don’t tax income and just file an FYI type of tax form to CA and ME since I am a resident and non-resident in those states, respectively, but shouldn’t have my income taxed by them right?

N

NCPERSON1

for 2018 where were you living (where did you sleep, get you mail, vote, drivers license,etc)? where you owned a home isn't germane.

where did you physically work during 2018 - even if you worked from an apartment and didn't have to go to the office, where were you physically?

it's not clear where you are working remotely (was that in CA or elsewhere and what that during 2018?) and it's not clear where you resided in 2018, and most importantly where you were residing at the end of 2018.

can you re-post and be more specific on these issues?

K

klauberkidAuthor

Employee

Sorry for confusion. This is more of a hypothetical for 2019 planning:

I will live in Maine. I will physically work from home in Maine (for a CA company).

Eventually, I will get new job and work physically in New Hampshire and live in Maine.

All of this is temporary and will last no more than 3 years. After those 3 years I will return to the home I own in California.

Curious what tax implications are for all of this. What dictates residency from a tax perspective, what I consider my home to be or where I’m actively/physically domiciled?

N

NCPERSON1

if you work in Maine all year and you live in Maine then you are a resident of Maine and will file state taxes there as a resident.

where you 'live' is defined by where you sleep, get your mail, vote, where your drivers license is from.

Where you own property doesn't necessarily define residency nor does the location of the company you work for,

Once you work in NH, the way it normally works is that the state of your residency will give you a credit for state taxes paid elsewhere. Given there is no income tax in NH, your ME taxes will be the same whether you work in ME or NH.

you didn't state what you are going to do with the house in CA, but if you rent it out, then that rent is income and reportable to CA (netted against the expenses of the investment)