I am leaving for a year-long trip around the world. I will have an income while traveling. Is it possible for me to choose which state will tax me as I will not have a permanent residence in any state? My current state has a flat income tax rate of 5% and I know some states that have a 0% income tax rate. I would like to pay taxes to one of those states, preferably Washington. How can I do this?
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What state are you in and what state is your employer in?– Glen PierceSep 16, 2018 at 7:24
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We are both in Utah– AudusSep 16, 2018 at 7:25
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The simple answer here is "No". They thought of that :)– FattieOct 27, 2018 at 3:27
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I think that If I have no house or car here I don’t have to pay income tax as I will not considered to have a domicile. I believe it is possible to not pay income taxes to any state while I am away.– AudusOct 27, 2018 at 18:42
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1 Answer
You should consult a tax professional who specializes in Utah personal income tax. In short no, you can't choose what state to be a resident of.
The Utah State Tax Commission says "Anyone with a Utah domicile is considered a Utah resident for tax purposes, even if they are not currently living in Utah." There are two ways to get rid of your Utah tax liability:
- Become a genuine resident of another state
or
- You (and your spouse) "are absent from Utah for at least 761 consecutive days" do not return to Utah for more than 30 days in a calendar year, and other requirements.
To become a resident of most states they require that you have an intent to move their long term. Washington State you must "take some action that proves you intend to live in the state on more than a temporary or transient basis.
FYI Utah says "You must file a Utah income tax return (or amended return) and pay any penalty and interest that apply if you did not file a Utah return based upon your belief that you did not meet the domicile criteria."
Unless you inteneed to move to another state after your time traveling
