"Home of Record" question

[Turbolag]

I have a question regarding the "home of record"

I will be doing my payback time starting this summer after a civilian residency, and don't really recall how the home of record selection works.

I remember my recruiting officer giving me a speech a few years back, telling me about how he selected NV even though he had no ties with that State beyond spending a few months there for an assignment. I know that there was some logic behind it, and it involved taxes. I did a search before posting this, but it was of no help.

As I have to inform the Military what my home of record is, I don't know what to put there as I have ties to many many places. My family lives in three different States that I can see myself wanting to go back to, and I have a couple of States that I have lived in that I would like to go back to too.

What is the purpose of the HOR? Is it that they pay you to move back there after your commitment ends? and if so, do you need to provide an address? say that I know which State I want to go back to, but not the town/county/locality.

How does the HOR selection affect my tax liability? Do I pay taxes in the State that I am earning them or are they withheld and paid based on the HOR?

Can I choose ANY State, or do I need to prove some sort of tie with it?

Thanks guys.

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[Gastrapathy]

Find a state with no state income tax that you feel you should be able to claim and claim it. Will it be technically legal, that depends, but no one will question it.

 

[Turbolag]

Find a state with no state income tax that you feel you should be able to claim and claim it. Will it be technically legal, that depends, but no one will question it.

that's part of my question, what do you need to "claim" that A or B State is your home of record?

 

[Slevin]

While I'm in the HPSP how can I change my home of record to a state with no state income tax?

 

[Turbolag]

I found this online, but don't know about the accuracy or legitimacy of it

Because military members may have "legal residence" in one state, but be stationed in a different state, the Servicemembers Civil Relief Act, allows military members to pay taxes, register vehicles, vote, etc., in their "state of legal residence," rather than the state they are stationed in. This can sometimes result in a tax advantage because several states exempt military pay from state taxes.
Does that mean a military member can change their "legal residence" anytime they want, and therefore avoid paying state taxes? Not quite. Under the law, "legal residence" is the place that the military member intends to live after they separate or retire from the military. It's the place that they consider their "permament home."
Depending on their service, and local polcies, an active duty military member can change their "legal residence" by visiting their local base legal office and/or base finance office and completing a DD Form 2058, State of Legal Residence Certificate.
However, the military is required by regulation to ensure that military members are not changing their "legal residence" for the sole purpose of obtaining a tax advantage. Therefore, when changing your "legal residence," military officials at the legal office (or finance office) may require some degree of proof that you consider the new state to be your "permament home."
The easist proof is "physical presence in the state." If you are currently stationed in a state, and wish to make it your permament home, it's generally pretty easy. If you are not currently stationed in the state you wish to make your permament home, and have never been stationed there, it become much harder. Generally, you need a specific address, not just the state in general. You can show your intentions to become a legal resident by registering to vote in the new state, by titling and registering your car in the new state (notifying your old state of the change), by getting a driver's license in the new state, or by preparing a new last will and testament (indicating your new state as your legal residence). Buying real property in the new state will also reinforce your claim.

 

[DogFaceMedic]

There is a difference between current state of residency and home of record. The HOR is basically where you entered active duty, and you can claim any state of residency. A big issue for HOR is that is where they will pay for a PCS when you get out. So if it is the wrong place where you want to get out, then you need to change it.

My current HOR is inaccurate because it is where I went to med school, not where I want to go when I am done. So, the move would be on me.

My current residency is different that has no income tax.

 

[edmadison]

There is a difference between current state of residency and home of record. The HOR is basically where you entered active duty, and you can claim any state of residency. A big issue for HOR is that is where they will pay for a PCS when you get out. So if it is the wrong place where you want to get out, then you need to change it.

My current HOR is inaccurate because it is where I went to med school, not where I want to go when I am done. So, the move would be on me.

My understanding of this is a little different. When you get out of the military, they will pay to move you to your home of record OR to your new home whichever is cheapest (i.e., you'd have to pay the difference) - right?. Also, can you actually change your HOR? I was under the impression that you could not.

As for the residency issues (domicile, actually). You can keep the domicile you currently have when you go on active duty, or you can change it to where you live where you are stationed (if you intent to move back there upon getting out). You can't just pick a state. You actually have to live there!

Ed

 

[jabreal00]

---------------- Listening to: Eclipse - Take Me Down (6 Underground) via FoxyTunes

There is a difference between current state of residency and home of record. The HOR is basically where you entered active duty, and you can claim any state of residency. A big issue for HOR is that is where they will pay for a PCS when you get out. So if it is the wrong place where you want to get out, then you need to change it.

My current HOR is inaccurate because it is where I went to med school, not where I want to go when I am done. So, the move would be on me.

My current residency is different that has no income tax.

^^Correct^^

My HOR is MD. The state I claim to residence is TX. There are no state taxes in TX. Plus I did my residency there.

 

[Boopieness]

you can change your home of record when you are active anytime you want, just go to personnel.

The smart thing to do is put Illinois down. No state taxes. Furthermore, when you get out your dd214 will say Illinois as home of record.

If it says ILLINOIS on dd214 as HOR, you get 4 years of free in-state tuition for any state supported school, graduate or professional. Say you get sick of medicine somewhere down the road, go back to school, get an MPH, MBA, JD whatever. Free. partime or weekend classes, law school, whatever - gratis.

children of vets also have 4 year free opportunity for free school through Illinois Gen Assembly scholarships. Thus, your kid gets accepted to med school, potential for free med/law/professional school (potential 150k) free, because you are an Illinois vet. No other state reveres its vets with educational opportunities like Illinois, but you have to be a resident vet.

 

[EMDoc0411]

What constitutes a vet? Retired or someone who does their 4 years and gets out? Thanks.

 

[ftrflyr29]

My understanding of this is a little different. When you get out of the military, they will pay to move you to your home of record OR to your new home whichever is cheapest (i.e., you'd have to pay the difference) - right?. Also, can you actually change your HOR? I was under the impression that you could not.

As for the residency issues (domicile, actually). You can keep the domicile you currently have when you go on active duty, or you can change it to where you live where you are stationed (if you intent to move back there upon getting out). You can't just pick a state. You actually have to live there!

Ed

Ed--you are correct on the first point, they will move you as far as your home of record when you get out--if you want to move further, you will pay for the difference.

I have always been told, one cannot change their HOR and it stays the place from where you entered (this may be service dependent, though), but you can change your residency at anytime--definitely pick a state with no income tax.

What constitutes a vet? Retired or someone who does their 4 years and gets out? Thanks.

Anyone who has served honorably and not gotten the "big chicken dinner" (BCD--bad conduct discharge) or any other "other than honorable" discharge. And, no you don't have to retire to be considered a vet.

 

[Croatalus_atrox]

you can change your home of record when you are active anytime you want, just go to personnel.

This isn't correct. You can change your state of legal residence most any time, but you can only change your Home of Record at breaks in service, or if it was erroneously entered. The Home of Record is determined by your legal residence at the time of entry into military service. With rare exceptions, you don't get to choose your HOR.

The smart thing to do is put Illinois down. No state taxes. Furthermore, when you get out your dd214 will say Illinois as home of record

Unless you are living in Illinois when you enter military service, you cannot claim Illinois as your HOR. There are exceptions, such as: IL residents attending out of state colleges or dependents of military members with IL residency who are stationed outside of IL. But someone who has never lived in IL or has no immediate family connection to it cannot claim IL as their HOR. Period.

It is possible to change your state of legal residence when you are in the military. I changed mine to IL, but I was stationed there, and planned to return there after my term of service (which I did). That doesn't get you the Illinois Veterans' benefits, though.

If it says ILLINOIS on dd214 as HOR, you get 4 years of free in-state tuition for any state supported school, graduate or professional. Say you get sick of medicine somewhere down the road, go back to school, get an MPH, MBA, JD whatever. Free. partime or weekend classes, law school, whatever - gratis.

children of vets also have 4 year free opportunity for free school through Illinois Gen Assembly scholarships. Thus, your kid gets accepted to med school, potential for free med/law/professional school (potential 150k) free, because you are an Illinois vet. No other state reveres its vets with educational opportunities like Illinois, but you have to be a resident vet.

Agreed.

 

[teacherman84]

I have asked a few people this question and have yet to get a definite answer so any insight would be appreciated.

I recently commissioned into AF with HPSP. All of my paperwork with the AF has my residence listed as the home I own in FL. I am moving to GA for school and will be renting out my home here while I am gone.

Will FL be considered my HOR? Also, can I maintain my FL residency status while at school in GA for pay purposes? I have the address of the home I own here as well as my parents address I could use here in the same town.

Can I keep my voters reg, DL, car registration and such in FL or will I have to switch it over and start paying GA state tax?

 

[Jet915]

As long as you "intend" to return to FL as your residence in the future, you can put FL as your state. I lived there for 6 months but still keep my plates and registration there.

 

[met19]

hmmm...so is it possible to move your HOR or not. When I entered HPSP it was in VA, howevere I attended med school in NY and I think thats where my HOR is. istayed for a residency and will be entering active duty in 12 months. I really really dont want my HOR to be NY. There taxes are through the rough, their benefits suck, and overall I'm outta that state.

 

[SirGecko]

hmmm...so is it possible to move your HOR or not. When I entered HPSP it was in VA, howevere I attended med school in NY and I think thats where my HOR is. istayed for a residency and will be entering active duty in 12 months. I really really dont want my HOR to be NY. Their taxes are through the rough, their benefits suck, and overall I'm outta that state.

As it was stated above state residency and hor are not the same thing. Once you move out of New York and start active duty you can keep state residency for any state that will have you.

 

[teacherman84]

As long as you "intend" to return to FL as your residence in the future, you can put FL as your state. I lived there for 6 months but still keep my plates and registration there.

I understand that is how it works if going on Active Duty, is it the same for while on IRR in HPSP?
I doubt the AF will care where I claim residency, I just dont want to get in trouble with GA and have them come after me for taxes on my income

 

[colbgw02]

I figured I would resurrect this thread rather than start a new one:

I know that by the letter of the law, you actually have to have a legitimate reason to change your state of legal residency (domicile). I've also been "encouraged" to change it in order to save money vis-a-vis state income tax. Suffice it to say, I have no legitimate way of doing this.

So, I'm wondering if this falls under the "if you ain't cheatin', you ain't trying" principle. Can I consider this a fringe benefit that doesn't carry a reasonable chance of getting called on? Or do states actively seek out those that try to game the system in this manner?

I tend to be risk adverse, so I'm not inclined to proceed (unless I miraculously PCS to one of this tax-free states). But I'd like to do my due diligence to find out if everyone's doing it and I'm just being a boy scout. If anyone has any stories, personal or otherwise, I would appreciate you sharing.

Thanks.

 

[backrow]

People only change their residence status when they PCS to one of the "favorable" states.

I've heard of people doing it on slightly shorter orders, but I've never heard of someone doing this without some sort of orders to that state.

And I wouldn't consider it too far-fetched to be in one of those states. TX and FL, among others, are pretty dense with military. You could also search out the states that don't tax military members when on active duty (eg New York)

 

[colbgw02]

People only change their residence status when they PCS to one of the "favorable" states.

I've heard of people doing it on slightly shorter orders, but I've never heard of someone doing this without some sort of orders to that state.

And I wouldn't consider it too far-fetched to be in one of those states. TX and FL, among others, are pretty dense with military. You could also search out the states that don't tax military members when on active duty (eg New York)

Well, I don't know if they only change it when they PCS, because I've been encouraged to do it by several people who never PCS'd to one of those places. But you're right, as I mentioned, it's not exactly kosher. If I were PCSing or on extended TDY, then I probably wouldn't be asking.

BTW, you only don't pay taxes if on active duty in New York if you meet the qualifications for a nonresident, which are somewhat complex. I know this because New York is the only place that I could legitimately change my domicile to (my parents live there). Their taxation website also stipulates that NY must be your domicile when entering active duty, so I don't know if the same rules would apply if I were to try to switch.

 

[backrow]

Well, I don't know if they only change it when they PCS, .

Agree, poor phrasing on my part...

 

[GopherFan14]

Ok guys... I realize this is an ancient thread but I didn't want to start a new one. I understand all of the different aspects for the service member, but how does residency (domicile) work for a spouse? I'm currently using my parents address as domicile and HOR, should my husband establish residency in PA? Or do we just have to forever file state taxes separately?

 

[colbgw02]

Ok guys... I realize this is an ancient thread but I didn't want to start a new one. I understand all of the different aspects for the service member, but how does residency (domicile) work for a spouse? I'm currently using my parents address as domicile and HOR, should my husband establish residency in PA? Or do we just have to forever file state taxes separately?

There was a federal law passed in 2009 called the Military Spouse Residency Relief Act, which permits spouses of active duty military members to file his/her taxes in their state of domicile or where they're physically located. Since most people file jointly and the servicemember must file in their state of domicile, it's usually easiest for the spouse just to go along with it. There is some fine print, so make sure you read the stipulations carefully.