State residency during residency

[thesauce]

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Many of us claimed state residency in another state during medical school, but does everyone claim state residency in the state that they're currently doing their medical residency?

I remember seeing a debate on whether residents were students or employees and it seems that the outcome would come into play in this circumstance.

Thanks in advance.

 

[jdh71]

Many of us claimed state residency in another state during medical school, but does everyone claim state residency in the state that they're currently doing their medical residency?

I remember seeing a debate on whether residents were students or employees and it seems that the outcome would come into play in this circumstance.

Thanks in advance.

As I understand it . . . it's a bit of a gray zone. I've kept my residency in my home state, even during training. I've not really run into any problems with this, but if I ever did, I'd simply change my residency. Most states don't seem to give a crap as long as you pay them income taxes.

 

[NOsquid]

Is your car still registered in your home state as well then?

 

[jdh71]

Is your car still registered in your home state as well then?

yup - again, as I understand it, kind of a gray area . . . though I don't think I'd beat a ticket if push came to shove

 

[NOsquid]

Just wondering. I have an old beater and I'm kinda skeered it won't pass inspection in taxachusetts in a couple of months 🙂 They probably test emissions n ****, where I'm from they kick the tires and see if the lights work, lol.

Might see if I can pull it off but I think the commies are gonna bust me.

 

[Neuro or Derm]

So if I have a license in another state but I need to buy a car in my new state must I get a new state license to buy the car or is that a grey area too? I just renewed my license a couple of months ago Arrgghh!

 

[jdh71]

So if I have a license in another state but I need to buy a car in my new state must I get a new state license to buy the car or is that a grey area too? I just renewed my license a couple of months ago Arrgghh!

Hmmm, this one I don't know about, but I'd guess probably if you buy a new car there, you will end up paying their taxes and get their license, even if you probably can techincally get it licensed in your home state.

 

[thesauce]

So if I have a license in another state but I need to buy a car in my new state must I get a new state license to buy the car or is that a grey area too? I just renewed my license a couple of months ago Arrgghh!

No you don't need to change your license to buy the car. Just buy it and register it in whatever state you want to and during the registration process, you'll have to pay the taxes on the vehicle.

So jdh71, do you pay income tax in the state you're training in or in the state you're claiming as your residence? Thanks for the input.

 

[gutonc]

So jdh71, do you pay income tax in the state you're training in or in the state you're claiming as your residence? Thanks for the input.

I can't speak for jdh, but most (all?) of the time, the answer is "both." You will need to pay income tax in the state where you get paid and the state where you maintain a primary residence.

This is why I think it's a fine idea for college student or med student to do this (no income to deal with anyway) but a poor idea once you get out in the real world. Your income's going to be crappy enough as it is. What are you going to gain by maintaining residency in a place you no longer live that won't be far offset by paying income tax to 2 states? Nobody will care about residence when you apply for fellowships or jobs.

Also, as far as the vehicle licensing thing goes, it's all well and good to have your car (and self) licensed and insured in State X while you're living in State Y 1000 miles away. But if/when you get in an accident in State Y, your insurance company can deny the claim because you lied to them about where you were living/driving the car. Again...for a non-student, way more potential trouble than it's worth.

 

[thesauce]

I can't speak for jdh, but most (all?) of the time, the answer is "both." You will need to pay income tax in the state where you get paid and the state where you maintain a primary residence.

That would actually be pretty unusual. Typically only if you're claiming part-year returns (6 mo in each state for example). Generally, you would file a non-resident return in one state and a resident return in the other, effectively paying income taxes in only one. It would be very odd to pay full taxes in both states.

Also, as far as the vehicle licensing thing goes, it's all well and good to have your car (and self) licensed and insured in State X while you're living in State Y 1000 miles away. But if/when you get in an accident in State Y, your insurance company can deny the claim because you lied to them about where you were living/driving the car. Again...for a non-student, way more potential trouble than it's worth.

Your car and personal license are two separate issues. Every state in the nation requires that you provide them with proof of insurance in that state in order to register your car in that state. That should be the state you're primarily driving in. However, your personal license can be from any state so long as it's valid.

 

[jdh71]

No you don't need to change your license to buy the car. Just buy it and register it in whatever state you want to and during the registration process, you'll have to pay the taxes on the vehicle.

So jdh71, do you pay income tax in the state you're training in or in the state you're claiming as your residence? Thanks for the input.

I file income tax in the state where I work, mostly because it simply comes out of my check anyway.