Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
My brother is retired, and lives part time in RI where he owns a house, and part tine in FL where he also owns a house. He is doing his taxes, and is trying to figure out which state he should claim as his residency.

He's using TurboTax, and apparently it asks where he resided on Dec 31 to use that as his residency. That would be FL since he goes there for the winters. If he claims FL as his residency, then he owes nothing in taxes.

I think he should be claiming RI as his residency because he registers his cars there and he votes there.

Is there a publication that I could point him to that explains all of this so that he has the correct answer? Is he perhaps supposed to just do part-time resident in both states? I'd think you have to claim permanent resident somewhere.

Can one of the tax experts help here and tell me where I should tell him to look?
Print the post Back To Top
No. of Recommendations: 1
Is there a publication that I could point him to that explains all of this so that he has the correct answer? Is he perhaps supposed to just do part-time resident in both states? I'd think you have to claim permanent resident somewhere.

So does Rhode Island:

“Resident” means an individual who is domiciled
in the State of Rhode Island or an individual
who maintains a permanent place of abode in
Rhode Island and spends more than 183 days of
the year in Rhode Island.
For purposes of the above definition, domicile is
found to be a place an individual regards as his or
her permanent home – the place to which he or she
intends to return after a period of absence. A domicile,
once established, continues until a new fixed
and permanent home is acquired. No change of
domicile results from moving to a new location if the
intention is to remain only for a limited time, even if
it is for a relatively long duration. For a married
couple, normally both individuals have the same
domicile.
Any person asserting a change in domicile must
show:
(1) an intent to abandon the former domicile,
(2) an intent to acquire a new domicile and
(3) actual physical presence in a new domicile.


http://www.tax.ri.gov/forms/2010/Income/2010%20Resident%20In...

Phil
Rule Your Retirement Home Fool
Print the post Back To Top
No. of Recommendations: 0
“Resident” means an individual who is domiciled
in the State of Rhode Island or an individual
who maintains a permanent place of abode in
Rhode Island and spends more than 183 days of
the year in Rhode Island.
For purposes of the above definition, domicile is
found to be a place an individual regards as his or
her permanent home – the place to which he or she
intends to return after a period of absence. A domicile,
once established, continues until a new fixed
and permanent home is acquired. No change of
domicile results from moving to a new location if the
intention is to remain only for a limited time, even if
it is for a relatively long duration. For a married
couple, normally both individuals have the same
domicile.
Any person asserting a change in domicile must
show:
(1) an intent to abandon the former domicile,
(2) an intent to acquire a new domicile and
(3) actual physical presence in a new domicile.


Thanks, Phil. I think he might have just barely spent 183 days in RI last year, and that looks like the test given that he has a permanent abode in both FL and RI. I will send him the info.
Print the post Back To Top
No. of Recommendations: 0
For tax purposes, the Feds don't seem to care. I'm getting ready to do our 2nd year of two-state income tax, and it's made no difference on our federal taxes.

State taxes are a whole 'nuther ball game. Since FL doesn't have income tax, he needs to read through the RI tax information. I'd probably suggest figuring the tax as both a resident (part-year) and a non-resident so that he understands how each works.

Unless TurboTax has a "snowbird" check box, it probably assumes that he moved. He would still owe part-year taxes to RI.

See http://www.tax.ri.gov/taxforms/ to find all the applicable forms and instructions.

State taxes in >1 state is a pain.

Kathleen
Print the post Back To Top
No. of Recommendations: 0
It's obvious he's a resident of RI. He would have to do more than just live in FL for part (even most) of the year in order to abandon his RI residency.

Ira
Print the post Back To Top
No. of Recommendations: 0
Kathleen--that's true, but spending your winters in RI and your summers in FL would be a bigger pain. TANSTAAFL!
Print the post Back To Top