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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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Im retiring from at&t and moving to San Antonio from Michigan.

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I'm retiring from at&t and moving to San Antonio from Michigan. I want to establish residency in Texas to avoid Mi. state income tax. I'm keeping my condo in MI. and renting a home in SA. I haven't received any monies (payments and distributions should begin by the end of feb.) in 2009 yet.
Hello skiric,

I understand from your post that you are retiring, and you plan to move from Michigan to Texas due to Texas not having any state income taxes.

Is your question related to what you will need to do to establish yourself as a resident of Texas?
Customer: replied 8 years ago.
yes and avoid mi. income taxes

Hello againCustomer

There is no exact formula or checklist that is used in order to establish domicile in a certain state.    Domicile is actually based more on your “intent” of where you intend for your home to be.

However, if a situation were to arise where you were questioned about your residency, the state would look at a number of factors. The biggest factor is physical presence in the state. In other words, do you own or rent or otherwise maintain a regular place of residence in the state. Even though you may have a residence in another state, your domicile state should be your main place of residence, where you spend the majority of your time. Other factors considered in determining your domicile state would be such things as:

·     where your driver’s license is registered
·     where your vehicle is registered
·     where you are registered to vote
·     where you receive your mail
·     where your bank accounts are established
·     memberships with local organizations
·     local church affiliation

If you have a physical presence in the state of Texas, then as long as you have also established some or all of the things on this list, this would be sufficient proof that you intend for Texas to be your domicile, regardless of whether or not you maintain a second home in Michigan. Once you establish your new state residence, you will simply discontinue filing state tax returns in Michigan.

It is actually not likely that the state of Michigan would even contact you regarding this issue. Taxpayers move from one location to another frequently. The only time a state will generally contact you is if they receive a report from an employer or firm that has reported withholding state income tax in that state, but a return has not been filed. As long as your retirement checks have no Michigan tax withheld, this will not likely even be an issue.

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