Author Topic: Recommendation for establishing domicile in no income tax state?  (Read 604 times)

tenant13

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Recommendation for establishing domicile in no income tax state?
« on: December 09, 2018, 04:11:33 PM »
So within a year or two I'd like to become a full time nomad with a summer residential "base" in EU but with the US tax residency in one of the 7 states that forgo individual income taxes. I don't plan to live in that state so here are my criteria for choosing one:

1. the least hassle free move of the residency - I hear that I could do it in a day in South Dakota but anything that doesn't require prolonged (more than two weeks) presence or repeated visits would be fine

2. set-and-forget scenario: I really would like to avoid showing up in person for things like Driver License renewal - are any states better than the others in that respect?

I've done some research and found:
https://www.escapees.com/,
https://www.sbimailservice.com/#tab-id-3,
https://travelingmailbox.com/, https://ipostal1.com/expat-mail-service.php,
https://physicaladdress.com/, https://www.myrvmail.com/,
https://dakotapost.net/rates-services/south-dakota-residency
Any thoughts on these? I'm leaning towards travelingmailbox since it has Miami address available.

3. reliable mail forwarding service with the address that wouldn't be questioned by any institutions (banks, brokers, mobile phone companies, health insurance companies, possibly medicaid etc)

4. easy access - in case I have to physically show up in the future; I guess Florida would be the clear winner here and specifically Miami since it has a huge intl airport

5. existences of services that help in moving residencies - if anyone thinks I actually need them?

YttriumNitrate

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Re: Recommendation for establishing domicile in no income tax state?
« Reply #1 on: December 09, 2018, 04:23:05 PM »
I grew up in the DC area, so there were tons of military brass moving in and out on a regular basis. A good chunk of them kept Florida as their state of legal residence. Things may have changed in the past two decades, but my guess would be that Florida is still probably the best choice.

terran

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pmac

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Re: Recommendation for establishing domicile in no income tax state?
« Reply #3 on: December 09, 2018, 10:20:07 PM »
Don't forget to factor in Healthcare costs.

Wyoming and Texas are both no income tax states, but Wyoming only has one provider, Blue Cross Blue Shield so premiums are much higher than Texas.

I know with Texas for your first driver's license renewal you can do it online.

I've researched this a lot, and it seems like at least in the eyes of the IRS you "live" in the US if you DO NOT qualify for the foreign earned income tax credit.

Also, look into the individual 401k since you'll be self employed. Really good investment/retirement vehicle.