State Residency - When does it change?

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corn18
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State Residency - When does it change?

Post by corn18 »

I moved from TX to OH this year. TX has no state tax, OH does. I did not change jobs, I still work the same job that is based in TX, I just work remote. I am working on my tax estimates for 2020 and am wondering when I became an OH resident for tax purposes. Here's the timeline:

Mar - sold TX house moved into apartment in TX.
Apr - Moved to apartment in OH waiting for home to be built
Aug - closed on new house, in the process of getting OH driver's licenses and tags

My plan was to use Apr as my residency date, but reading up online it seems I could make a case for Aug.

This is what it says on the ohio.gov website:

"You are considered an Ohio resident once you: take a job, sign a lease, buy a home or enroll children in school. Within 30 days of establishing residency, you will need an Ohio driver license for yourself, and an Ohio title and license plates for your vehicle."

What date should I use?

Thanks, Corn
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sailaway
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Re: State Residency - When does it change?

Post by sailaway »

So, according to what you posted, as soon as you signed a lease. What is the argument for August?
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Watty
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Re: State Residency - When does it change?

Post by Watty »

When did you give up your apartment in Texas?

That might make a difference too.
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corn18
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Re: State Residency - When does it change?

Post by corn18 »

Watty wrote: Tue Sep 01, 2020 6:02 pm When did you give up your apartment in Texas?

That might make a difference too.
May
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rkhusky
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Re: State Residency - When does it change?

Post by rkhusky »

When did you close your bank accounts and magazine subscriptions in TX? Started mail forwarding and submitted change of address forms?
Last edited by rkhusky on Tue Sep 01, 2020 6:08 pm, edited 1 time in total.
fabdog
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Re: State Residency - When does it change?

Post by fabdog »

"You are considered an Ohio resident once you: take a job, sign a lease, buy a home or enroll children in school. Within 30 days of establishing residency, you will need an Ohio driver license for yourself, and an Ohio title and license plates for your vehicle."
April is your date.... that's when you moved there, had a lease, etc... If you want to take anything from the quote above... you are behind schedule getting your drivers license and tags....

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DIFAR31
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Re: State Residency - When does it change?

Post by DIFAR31 »

If when you moved to Ohio in April it was your intent to make Ohio your residence from that point forward, use the date you moved into the apartment in Ohio.

P.S. You should have acted sooner on the Ohio license and vehicle registration.
lstone19
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Re: State Residency - When does it change?

Post by lstone19 »

Sometime between the date you moved out of the apartment in Texas and moved into the apartment in Ohio. You could argue the dates your were in transit (if more than one).

Not withstanding that Ohio's website says you're a resident as soon as you sign a lease, if that lease is for future occupancy, how you can be a resident if you don't yet have a place to reside? Plus, I consider it absurd that two states could both consider you a resident at the same time. That all said, I doubt any state is going to go to the trouble of arguing that your claimed start of residency was off a couple of days.

As for your claim that a case could be made for August, I don't see it. That you waited (probably illegally) to get an Ohio DL and auto registration doesn't change the reality of when your residency actually changed.
dwc13
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Re: State Residency - When does it change?

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Tim_in_GA
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Re: State Residency - When does it change?

Post by Tim_in_GA »

I would say April. I wouldn’t worry too much about the BMV stuff, I did mine several months after moving to OH.
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galawdawg
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Re: State Residency - When does it change?

Post by galawdawg »

Based upon the information in your post, April would be the date you established Ohio residence.
Apr - Moved to apartment in OH waiting for home (in OH) to be built
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Re: State Residency - When does it change?

Post by jebmke »

In April you changed your domicile to Ohio with the intent to make it your permanent residence.
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corn18
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Re: State Residency - When does it change?

Post by corn18 »

April it is. And we didn't get driver's licenses and tags because they were closed for COVID. I drive by every day and the line is still out the door. I'll get them when I get them.
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AnEngineer
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Re: State Residency - When does it change?

Post by AnEngineer »

corn18 wrote: Wed Sep 02, 2020 1:15 pm April it is. And we didn't get driver's licenses and tags because they were closed for COVID. I drive by every day and the line is still out the door. I'll get them when I get them.
Out the door doesn't necessarily mean anything depending on how they're doing social distancing. I was just at a place where the line was out door. There were about three people in front of me. I wouldn't risk knowingly driving without valid license and registration.
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corn18
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Re: State Residency - When does it change?

Post by corn18 »

AnEngineer wrote: Wed Sep 02, 2020 2:31 pm
corn18 wrote: Wed Sep 02, 2020 1:15 pm April it is. And we didn't get driver's licenses and tags because they were closed for COVID. I drive by every day and the line is still out the door. I'll get them when I get them.
Out the door doesn't necessarily mean anything depending on how they're doing social distancing. I was just at a place where the line was out door. There were about three people in front of me. I wouldn't risk knowingly driving without valid license and registration.
I still have current and unexpired TX licenses and plates. Whether that is valid isn’t causing me to rub my worry beads.
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neurosphere
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Re: State Residency - When does it change?

Post by neurosphere »

corn18 wrote: Tue Sep 01, 2020 5:55 pm "You are considered an Ohio resident once you: take a job, sign a lease, buy a home or enroll children in school. Within 30 days of establishing residency, you will need an Ohio driver license for yourself, and an Ohio title and license plates for your vehicle."
Just in case it hasn't already been made clear, this sentence refers to "resident" for the purposes of the DMV. It is not really relevant for the purposes of determining your resident status for Ohio state taxes.

Ohio 1040 instructions say:
Generally, any individual with an abode
in Ohio is presumed to be a resident
. The
abode can be either owned or rented.
Temporary absence from your Ohio abode,
no matter how long, does not change your
residency status. Thus, if you live in Ohio,
the presumption is that you are an Ohio
resident.
Others have already given you the correct answer. The date of your residency was the date you moved into your OH apartment, assuming you didn't otherwise have other housing available to you or stay in OH prior to when you moved into the apartment.

Neurosphere
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Watty
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Re: State Residency - When does it change?

Post by Watty »

In addition to your drivers licence and car registration you also need to be concerned about getting Ohio car insurance. If you do not have that already then I would be concerned that if you are in a car accident that your Texas car insurance company to use the move as a reason not to cover you.
pshonore
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Re: State Residency - When does it change?

Post by pshonore »

Hopefully your employer has been withholding OH State taxes since you started working online from there in April. Have you checked your pay stubs? I doubt you could make a case for August.
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wander
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Re: State Residency - When does it change?

Post by wander »

I would use the day when you got electric for your residence in OH.
Katietsu
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Re: State Residency - When does it change?

Post by Katietsu »

DIFAR31 wrote: Tue Sep 01, 2020 6:08 pm If when you moved to Ohio in April it was your intent to make Ohio your residence from that point forward, use the date you moved into the apartment in Ohio.

P.S. You should have acted sooner on the Ohio license and vehicle registration.
This. You could, in theory, be fined for the delay in getting the license and vehicle registration if your intent was to move to Ohio.

The only time your arrival in the new state might not correspond with the change of residency is if you went to Ohio expecting just to be there temporarily and then plans changed.

And the date might not be as significant as you think. Your wages are taxed by Ohio for the time you being paid while physically working in Ohio. (Subject to limited exceptions.) This was April. The only difference between what is taxed by Ohio for a April vs August residency would be unearned income with no OH source like bank interest.
cncm
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Re: State Residency - When does it change?

Post by cncm »

FWIW I have colleagues who moved from NYC to Florida in March but still work remotely at the same job...they tried to claim FL for tax residency purposes and was told by HR (as well as their accountant) that they still need to pay NY state taxes given their job is still technically in NY (company does not have physical office in FL). Seems like it's not so simple when you're still working in a job located in the other state.
sailaway
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Re: State Residency - When does it change?

Post by sailaway »

cncm wrote: Wed Sep 02, 2020 8:17 pm FWIW I have colleagues who moved from NYC to Florida in March but still work remotely at the same job...they tried to claim FL for tax residency purposes and was told by HR (as well as their accountant) that they still need to pay NY state taxes given their job is still technically in NY (company does not have physical office in FL). Seems like it's not so simple when you're still working in a job located in the other state.
Actually, if they have relocated, they will file as a non resident NY tax payer (depends on time frame, obviously). The residency is straight forward, the taxes owed may be less so. All of those interstate commuters in the NYC area are doing the same thing. They get inter state tax credits, but since your colleagues moved to a no income tax state, that isn't really applicable.
Gill
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Re: State Residency - When does it change?

Post by Gill »

I agree with April. I know you would prefer August but you showed every intent to become an Ohio resident in April.
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