Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
My wife and I are considering doing something a little unconventional. We're considering selling (or potentially renting out) our house and having several short-term (6 month-ish) living experiences around the country. I won't have any problem working remotely.
Does anyone know how this would work for state income taxes? Would we pay based on how many months we "lived" in a state? Or perhaps could we establish residency in a no-income-tax state like FL and then just "visit" other states.
Has anyone on the board ever done this?
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You have to check with each state. Many states will tax you as a resident if you lived in the state for a substantial part of the year (often 183 days) even if you have a permanent home elsewhere. In addition, your former state may still consider you to be domiciled there, and some states will tax you as a resident based on your domicile even if you were almost never there, while others will not.
Regardless of your state of residence, if you earn income in a state, you have to pay taxes on that income (with the exception of some neighboring states such as PA/NJ which don't tax each other's residents on salary).
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