Spouse & The Military

[SeminoleFan3]

I've got my move set up, and we're all ready to go. I currently have a HOR of Florida (as that's where I did all my paperwork and lived at the time), and have no intention of changing that. However, when I got to medical school, I registered to vote and got a driver's license in my current state. My car is still registered in FL, as it was in my parents' name until recently. Does registering to vote and getting a DL in my new state (not my HOR) reap any detriment to my tax situation? I obviously still want to keep FL as my HOR for tax reasons.
Also, what about my spouse? He was going to register his car in our new state, and the same with voting/DL. He'll be an intern as well (civilian). Can he claim FL as his state, or will we have to file in our new state for him?

Ugh...it's all so confusing.

---

Members don't see this ad.

 

[Nirv]

As far as the military goes, whatever you put in the HOR box, that's your HOR. You nor your spouse has to change it. Outside of the military, you have to get your DL where you live, or you will get hit up with state tax if applicable. Have you filed taxes before?

 

[SeminoleFan3]

As far as the military goes, whatever you put in the HOR box, that's your HOR. You nor your spouse has to change it. Outside of the military, you have to get your DL where you live, or you will get hit up with state tax if applicable. Have you filed taxes before?

I have. I've been filing for the past 7 years. It hasn't really been a problem thus far. My dad's been in the service for quite a while, and both of my parents have always had DLs, voting registration, and cars registered in their HOR, not where they currently lived.

Florida doesn't have state tax, which is precisely why I want to keep it.

 

[SeminoleFan3]

...

 

[DrMetal]

if you're military active duty, not you (nor your husband) need to get a Maryland DL, nor do you have to become a legal resident of MD, nor do you have to pay the MD "non-resident" tax.

Would advise keeping everything Florida. You wont have to pay any kind of state tax, and your car registration would be cheaper.

 

[SeminoleFan3]

if you're military active duty, not you (nor your husband) need to get a Maryland DL, nor do you have to become a legal resident of MD, nor do you have to pay the MD "non-resident" tax.

Would advise keeping everything Florida. You wont have to pay any kind of state tax, and your car registration would be cheaper.

Well, when I moved to my current med school state, I got a DL in this state just because I didn't know any better at the time. Therefore, I don't currently have a FL DL or voter's registration. I plan to get my voter's registration back in FL in the next few weeks (which you can do without a DL). However, I'm kinda stuck with the DL issue. My car was registered in my parents' names and in FL, as that's their SLR/HOR as well, but it's going to be transferred over to me shortly. I plan to get my medical license in FL, so I'm hoping between all that (and just a MD DL) that it'll show FL intent and satisfy the IRS if I ever get audited.

 

[DrMetal]

Well, when I moved to my current med school state, I got a DL in this state just because I didn't know any better at the time. Therefore, I don't currently have a FL DL or voter's registration. I plan to get my voter's registration back in FL in the next few weeks (which you can do without a DL). However, I'm kinda stuck with the DL issue. My car was registered in my parents' names and in FL, as that's their SLR/HOR as well, but it's going to be transferred over to me shortly. I plan to get my medical license in FL, so I'm hoping between all that (and just a MD DL) that it'll show FL intent and satisfy the IRS if I ever get audited.

If you're in the mil, you can pretty much claim any state to be your registered state, provided you have some logical reason for doing so (I know some people who claimed FL, having only been to the state once-DisneyWorld!). you having your parents there, your cars registered there, being from there . . is more than enough reason. So I'd suggesting finding a way to get a FL DL, even if it means going home to do so (you gotta pick up your car, right?).

Im not exactly sure what the law is in MD, but (I think) if you get a MD DL, you have to become an official resident (or pseudo-resident of the state), which would mean having to pay some kind of state tax (which is not waiverable per AD status, b/c you're actually living in the state of MD). Also, I think you're required to register your cars in MD if you want the DL. Its a major pain . . the cardinal rule around here regarding state registration is "anything but Maryland".

 

[SeminoleFan3]

If you're in the mil, you can pretty much claim any state to be your registered state, provided you have some logical reason for doing so (I know some people who claimed FL, having only been to the state once-DisneyWorld!). you having your parents there, your cars registered there, being from there . . is more than enough reason. So I'd suggesting finding a way to get a FL DL, even if it means going home to do so (you gotta pick up your car, right?).

Im not exactly sure what the law is in MD, but (I think) if you get a MD DL, you have to become an official resident (or pseudo-resident of the state), which would mean having to pay some kind of state tax (which is not waiverable per AD status, b/c you're actually living in the state of MD). Also, I think you're required to register your cars in MD if you want the DL. Its a major pain . . the cardinal rule around here regarding state registration is "anything but Maryland".

Hmm. I didn't realize that about MD. The thing about FL is I don't have any address down there to bring to the DMV. Maybe I'll call their DMV office in the morning to figure out if there's something I can work out.
Also, I already have the car. It's just registered in FL. Maybe I can just keep my current state license when I move.

 

[DrMetal]

Maybe I can just keep my current state license when I move.

Would be best, until you can get a FL DL. Even if your current DL expires, you can drive on an expired DL (as active duty) in most states. Some states just require you to flash your CAC along with your DL should you get pulled over, some require a statement or card from your DL's state, ensuring that the DL is still valid despite the expiration date. Check with you DL's DMV as well as the MD DMV. In any case, this can also be taken care of (probably) with some paperwork, vice getting a new DL in person . . . might save you some time.

 

[SeminoleFan3]

Would be best, until you can get a FL DL. Even if your current DL expires, you can drive on an expired DL (as active duty) in most states. Some states just require you to flash your CAC along with your DL should you get pulled over, some require a statement or card from your DL's state, ensuring that the DL is still valid despite the expiration date. Check with you DL's DMV as well as the MD DMV. In any case, this can also be taken care of (probably) with some paperwork, vice getting a new DL in person . . . might save you some time.

Thanks. I appreciate the advice.

 

[NavyFP]

A few things to consider:

You don't need a DL for the state in which you are living. I did just fine with a VA license in HI for almost 5 years and they never cared. When you go visit your parents in the future, get a new FL license, it makes things cleaner.

Did HPSP pay in-state tuition for med school? The IRS won't be coming after you, but the state you lived in may want some taxes. When you are in the IRR, the whole military thing does not count. HOR for DoD is absolutely moot. By having a DL and voting in the state in which you went to school, you have pretty much met the criteria for residence. If you add in-state tuition, that trifecta would mean you owe state income tax to that state. They may never track you down and the amount you owe would be small, but could happen.

Your husband will have to pay state taxes in one of two places. The place you are living in (MD/DC/VA) or the place he is working. While he may claim residence in another state, he is earning money elsewhere. Since he is not in the military, he will owe taxes. I would recommend talking to an honest to God tax professional (CPA/Tax Atty) to learn all of the ins/outs of who he should be paying/filing with. Think of professional sports players. They have to pay taxes based on the city they play their game in not just where they live.

 

[DrMetal]

Thanks. I appreciate the advice.

You're welcome! (Be nice to me on the wards this Fall)

 

[SeminoleFan3]

A few things to consider:

You don't need a DL for the state in which you are living. I did just fine with a VA license in HI for almost 5 years and they never cared. When you go visit your parents in the future, get a new FL license, it makes things cleaner.

Did HPSP pay in-state tuition for med school? The IRS won't be coming after you, but the state you lived in may want some taxes. When you are in the IRR, the whole military thing does not count. HOR for DoD is absolutely moot. By having a DL and voting in the state in which you went to school, you have pretty much met the criteria for residence. If you add in-state tuition, that trifecta would mean you owe state income tax to that state. They may never track you down and the amount you owe would be small, but could happen.

Your husband will have to pay state taxes in one of two places. The place you are living in (MD/DC/VA) or the place he is working. While he may claim residence in another state, he is earning money elsewhere. Since he is not in the military, he will owe taxes. I would recommend talking to an honest to God tax professional (CPA/Tax Atty) to learn all of the ins/outs of who he should be paying/filing with. Think of professional sports players. They have to pay taxes based on the city they play their game in not just where they live.

Thanks Navy FP. I was actually an out of state resident at my school because I was a resident of Florida when I applied. You don't get in state tuition here for things like DL, voting, and even owning a home. You needed to be a resident of this state before starting school. So, I should be covered there.
As for the CPA, that's our next plan before residency starts.

 

[SeminoleFan3]

You're welcome! (Be nice to me on the wards this Fall)

I'd like to think I'm nice to most people

 

[colbgw02]

Your husband will have to pay state taxes in one of two places. The place you are living in (MD/DC/VA) or the place he is working. While he may claim residence in another state, he is earning money elsewhere. Since he is not in the military, he will owe taxes. I would recommend talking to an honest to God tax professional (CPA/Tax Atty) to learn all of the ins/outs of who he should be paying/filing with. Think of professional sports players. They have to pay taxes based on the city they play their game in not just where they live.

I do not think this information is correct. In late 2009, the Military Spouse Residency Relief Act became law, which allows a military spouse to pay taxes in their state of domicile. There are some conditions; namely, the spouse has to be living in their new location for the sole purpose of following the active duty servicemember. The spouse can still choose to pay taxes in the new location, if it's advantageous to do so.

On a separate note, there is some confusing terminology that needs to be cleared up. "Residency" is a nebulous term without a clear legal definition; it really shouldn't be used. The proper term is "domicile", and even then there isn't a universally recognized standard for how to establish domicile. For a servicemember, it's best defined as the state in which you intend to establish your household after you end your active duty service. Proving or disproving intent is extremely difficult, but things that you can do to indicate your intentions include maintaining a driver's license in a state, registering your vehicles there, executing a last will and testament in a certain state, or owning property. The single-most important factor in determining domicile is where you vote.

Your home of record is simply the location from which you first entered active duty. For practical purposes, an officer's home of record is permanent and cannot be changed. One's domicile may change many times, but your home of record is always the same. This only really has consequences when you are separating from the Army.

Check your orders and additional paperwork to see where the Army thinks your home of record is. If you would like it to be Florida and they're listing your medical school location, then you may want to have it changed. And that's something you definitely want to take care of now. You will probably have to convince them that you never really established a household in your current state, which may be difficult or impossible to do.

For tax purposes, if the Army is withholding money to a state other than Florida, then you'll need to visit the finance office to have that fixed. It's a relatively simple form. If you've established your domicile in Florida by way of voter registration, car registration, etc., then you should be on solid legal footing if another state were to ever come looking for their chunk of your pay.

 

[SeminoleFan3]

I do not think this information is correct. In late 2009, the Military Spouse Residency Relief Act became law, which allows a military spouse to pay taxes in their state of domicile. There are some conditions; namely, the spouse has to be living in their new location for the sole purpose of following the active duty servicemember. The spouse can still choose to pay taxes in the new location, if it's advantageous to do so.

On a separate note, there is some confusing terminology that needs to be cleared up. "Residency" is a nebulous term without a clear legal definition; it really shouldn't be used. The proper term is "domicile", and even then there isn't a universally recognized standard for how to establish domicile. For a servicemember, it's best defined as the state in which you intend to establish your household after you end your active duty service. Proving or disproving intent is extremely difficult, but things that you can do to indicate your intentions include maintaining a driver's license in a state, registering your vehicles there, executing a last will and testament in a certain state, or owning property. The single-most important factor in determining domicile is where you vote.

Your home of record is simply the location from which you first entered active duty. For practical purposes, an officer's home of record is permanent and cannot be changed. One's domicile may change many times, but your home of record is always the same. This only really has consequences when you are separating from the Army.

Check your orders and additional paperwork to see where the Army thinks your home of record is. If you would like it to be Florida and they're listing your medical school location, then you may want to have it changed. And that's something you definitely want to take care of now. You will probably have to convince them that you never really established a household in your current state, which may be difficult or impossible to do.

For tax purposes, if the Army is withholding money to a state other than Florida, then you'll need to visit the finance office to have that fixed. It's a relatively simple form. If you've established your domicile in Florida by way of voter registration, car registration, etc., then you should be on solid legal footing if another state were to ever come looking for their chunk of your pay.

The Navy is currently using Florida as my domicile, which is also my HOR. So, I'm going to keep my current state's DL until I get to FL to get a new one (which could be a few years), but still register to vote in FL (as you don't need a DL to do that).

 

[NavyFP]

I do not think this information is correct. In late 2009, the Military Spouse Residency Relief Act became law, which allows a military spouse to pay taxes in their state of domicile. There are some conditions; namely, the spouse has to be living in their new location for the sole purpose of following the active duty servicemember. The spouse can still choose to pay taxes in the new location, if it's advantageous to do so.

This is why you pay a tax professional. They are supposed to know all of the ins and outs.