Claiming residence in another state

[dilleytech]

I know a guy who does it. Sounded pretty easy when he was talking about it. He’s in his 60’s and says “what are they going to do? Take my birthday away?” Lol

 

Does what ? If he’s claiming resident status and not living there 6 months or more they won’t take away his birthday but they will take his hunting privileges away for years in multiple states along with generous fines. I still believe op wants to legitimately become a resident of Idaho or Montana but work in Washington and possibly spend time there as well

Hey claims residency in Wyoming and lives in WA. You know what you make when you take hunting rights away from a hunter? A poacher.

[follow maggie]

I know a guy who does it. Sounded pretty easy when he was talking about it. He’s in his 60’s and says “what are they going to do? Take my birthday away?” Lol

 

Does what ? If he’s claiming resident status and not living there 6 months or more they won’t take away his birthday but they will take his hunting privileges away for years in multiple states along with generous fines. I still believe op wants to legitimately become a resident of Idaho or Montana but work in Washington and possibly spend time there as well

Hey claims residency in Wyoming and lives in WA. You know what you make when you take hunting rights away from a hunter? A poacher.

Your friend is already a poacher.

[Miles]

You’re not helping your friend much putting that on the internet.  Wyoming doesn’t mess around.  When your phone rings.... enjoy the conversation.

[luvmystang67]

I moved to Idaho this year to become a resident.  I'm days away from reaching that status and getting a lifetime hunting and fishing license.

The big one is going to be the income tax.

As far as what you can get away with? I speculate that if you lived in WA, but claimed Idaho residency, had an Idaho drivers license, had a bonafide Idaho residence and used that to pay your income taxes, but actually spent more or most nights in WA, I don't think anyone would know.  I'm not saying that is legal or the intent, but I can't see how they'd know.

Now if you think you can do the PO Box thing, or any version of that, which results in you not having an Idaho drivers license and NOT paying income tax... they're def going to find you.  They want that tax money.

I hope I never have to leave, I love it here.  Apparently I'm the reason the property values are increasing, but I can't afford to buy anything, so maybe its not me after all.

[CarbonHunter]

Thanks for the helpful comment. Are you working in other states or just in Idaho?  My situation going forward is going to put me working in multiple states and that is why I’m looking for information as to when to make the “move”

[whacker1]

Thanks for the helpful comment. Are you working in other states or just in Idaho?  My situation going forward is going to put me working in multiple states and that is why I’m looking for information as to when to make the “move”

There are lots of people that establish residency in a given state and then work in Prudhoe Bay, North Dakota, etc.  i think you are on the right track if you are buying a house in idaho or Montana, changing residency, drivers licensure, voting, income tax, but work on the road in multiple states.  Very common event for truck drivers, construction workers, sales people, etc. 

I live in Spokane, but i can say that i will have spent more days in Idaho at our secondary property since October 30th due to the kids learning online and working remotely.   averaging about 4-5 days per week.   Does that put me in a path for no longer being a Washington resident?  No, my wife got jury duty summons for spokane county yesterday, my kids are still registered and participating in the spokane school district, etc.   There is a common sense approach to this endeavor.  More power to you on your goal to find a new residence and retirement property.   I do the math on income tax about once per month for Idaho and montana and it doesn't pencil for us yet.

[luvmystang67]

Thanks for the helpful comment. Are you working in other states or just in Idaho?  My situation going forward is going to put me working in multiple states and that is why I’m looking for information as to when to make the “move”

I technically work in WA, but right now that is remote so its a little skewed.  I'm not sure the world is ready for how remote work plays a role.

I could PROBABLY get away with not claiming Idaho residence if I wasn't a hunter, which would keep me from paying state income taxes.  It would be officially not legal, but I think I could get away with it.  However, our ENTIRE purpose for moving her was establishing residency for lifetime licenses, so I'll need to claim residency and pay the income tax.

If it helps, the best I can tell is that Idaho takes your total Jan-Dec income and multiplies it by their rate (which is almost 7%), multiplied again by the number of days you were a resident divided by 365.  So if you made 120k in 2021, and were in Idaho for December, then you'd pay income tax on 10k of it.  Or you could apply it to the rate, either way you get the idea.  If I make a ton in WA in Jan-June and then move to Idaho jobless in September, I still will owe some income tax to Idaho because of my earlier employment that year when I was a non resident.  Just a thing to keep in mind.

I do think WA is more favorable from a tax perspective, depending on what you buy.  Income tax here is 6%, Sales tax (on everything, even food) is 6% and yeah fuel is cheaper, but if you're like me, you'd prefer no state income tax and no tax on food.  But hunting is great, no weird gun laws (yet), fewer people...  all that is pretty great.

[whacker1]

Thanks for the helpful comment. Are you working in other states or just in Idaho?  My situation going forward is going to put me working in multiple states and that is why I’m looking for information as to when to make the “move”

I technically work in WA, but right now that is remote so its a little skewed.  I'm not sure the world is ready for how remote work plays a role.

I could PROBABLY get away with not claiming Idaho residence if I wasn't a hunter, which would keep me from paying state income taxes.  It would be officially not legal, but I think I could get away with it.  However, our ENTIRE purpose for moving her was establishing residency for lifetime licenses, so I'll need to claim residency and pay the income tax.

If it helps, the best I can tell is that Idaho takes your total Jan-Dec income and multiplies it by their rate (which is almost 7%), multiplied again by the number of days you were a resident divided by 365.  So if you made 120k in 2021, and were in Idaho for December, then you'd pay income tax on 10k of it.  Or you could apply it to the rate, either way you get the idea.  If I make a ton in WA in Jan-June and then move to Idaho jobless in September, I still will owe some income tax to Idaho because of my earlier employment that year when I was a non resident.  Just a thing to keep in mind.

I do think WA is more favorable from a tax perspective, depending on what you buy.  Income tax here is 6%, Sales tax (on everything, even food) is 6% and yeah fuel is cheaper, but if you're like me, you'd prefer no state income tax and no tax on food.  But hunting is great, no weird gun laws (yet), fewer people...  all that is pretty great.

well said.  Property tax is lower in Idaho also.  But climbing as assessed values are climbing with the influx of foreigners.    Idaho also has a capital gains tax that washington does not.  Idaho does not have an estate tax.

[whacker1]

CarbonHunter is looking at Montana, so he is also favorable in no sales tax.
Montana has a 6.90% income tax in the 7th bracket of 7 brackets for the state.
capital gains tax in montana is 2%
lower gas tax than Washington and simliar to Idaho.
Property taxes in montana i believe vary quite a bit by county.

[Stein]

Property tax is going to vary widely depending on where in WA you are coming from and where you are going.  When I looked at it, moving from Arlington to Livingston meant spending more for a house, more on property tax (percentage as well as overall) and more on other taxes (income vs sales).  As we all know, property tax depends on the school, fire, police, ambulance, hospital, whatever other levy that exists.  My prospective move would be the equivalent of about a 10% reduction in income give or take for our specific situation.

If you are coming from Mercer Island and moving to Two Dot, it's going to be a very different picture.  If you live in Snohomish and buy a new truck, boat, snowmobiles and ORV every other year, you are going to be paying a bunch more in tax than I do as well.

Home prices in MT are hugely variable, my brother just sold a very average 70's split level on a normal city lot for $650k in Bozeman and the same house 3 hours away in Great Falls you would be lucky to get $250k.  Taxes in Bozeman are stiff, great new schools, shiny new fire trucks and stations, nice parks all over the place, trails, etc.  In Great Falls, not so much.  I'm not sure about ID, but I bet it's at least similar.

A guy needs to look at it with a fairly tight view, you really can't compare WA to MT or ID at the state level with any sort of relevant outcome.

[whacker1]

Property tax is going to vary widely depending on where in WA you are coming from and where you are going.  When I looked at it, moving from Arlington to Livingston meant spending more for a house, more on property tax (percentage as well as overall) and more on other taxes (income vs sales).  As we all know, property tax depends on the school, fire, police, ambulance, hospital, whatever other levy that exists.  My prospective move would be the equivalent of about a 10% reduction in income give or take for our specific situation.

If you are coming from Mercer Island and moving to Two Dot, it's going to be a very different picture.  If you live in Snohomish and buy a new truck, boat, snowmobiles and ORV every other year, you are going to be paying a bunch more in tax than I do as well.

Home prices in MT are hugely variable, my brother just sold a very average 70's split level on a normal city lot for $650k in Bozeman and the same house 3 hours away in Great Falls you would be lucky to get $250k.  Taxes in Bozeman are stiff, great new schools, shiny new fire trucks and stations, nice parks all over the place, trails, etc.  In Great Falls, not so much.  I'm not sure about ID, but I bet it's at least similar.

A guy needs to look at it with a fairly tight view, you really can't compare WA to MT or ID at the state level with any sort of relevant outcome.

Also, well said.   too many considerations to make it simple.

[luvmystang67]

Property tax is going to vary widely depending on where in WA you are coming from and where you are going.  When I looked at it, moving from Arlington to Livingston meant spending more for a house, more on property tax (percentage as well as overall) and more on other taxes (income vs sales).  As we all know, property tax depends on the school, fire, police, ambulance, hospital, whatever other levy that exists.  My prospective move would be the equivalent of about a 10% reduction in income give or take for our specific situation.

If you are coming from Mercer Island and moving to Two Dot, it's going to be a very different picture.  If you live in Snohomish and buy a new truck, boat, snowmobiles and ORV every other year, you are going to be paying a bunch more in tax than I do as well.

Home prices in MT are hugely variable, my brother just sold a very average 70's split level on a normal city lot for $650k in Bozeman and the same house 3 hours away in Great Falls you would be lucky to get $250k.  Taxes in Bozeman are stiff, great new schools, shiny new fire trucks and stations, nice parks all over the place, trails, etc.  In Great Falls, not so much.  I'm not sure about ID, but I bet it's at least similar.

A guy needs to look at it with a fairly tight view, you really can't compare WA to MT or ID at the state level with any sort of relevant outcome.

Also, well said.   too many considerations to make it simple.

If you have a good salary, but are a saver and don't like expensive things then I think WA is better.  I make a decent living, but I like to shop at garage sales.  I buy all my vehicles private party.  I don't eat out.  I invest in the market and do have capital gains often.  I think financially I'm better off in WA.  Right now in Coeur d'Alene, a house ACTUALLY costs as much as a comparable house in Greenlake.  Don't get me wrong, I don't want to live in Greenlake, but that very concept is fairly ridiculous.  Also, Idaho consistently ranks VERY low in quality of education, probably due to their very low property taxes.  If you have kids, you might want to weigh that.  As you're talking retirement, this probably isn't a concern.

For me, I can buy a lot of NR elk tags for the income tax hit.  I'd probably be best financially to live in Spokane.  Especially when I already have the Idaho lifetime license (5 days!).

[dilleytech]

I know a guy who does it. Sounded pretty easy when he was talking about it. He’s in his 60’s and says “what are they going to do? Take my birthday away?” Lol

 

Does what ? If he’s claiming resident status and not living there 6 months or more they won’t take away his birthday but they will take his hunting privileges away for years in multiple states along with generous fines. I still believe op wants to legitimately become a resident of Idaho or Montana but work in Washington and possibly spend time there as well

Hey claims residency in Wyoming and lives in WA. You know what you make when you take hunting rights away from a hunter? A poacher.

Your friend is already a poacher.

👍

[NiteHawk]

I think the main thing is ensuring you don't have resident licenses in two states during the same year and that you are abiding by MT and WA laws. You will want to know any special MT laws regarding residency (residing in MT, living in MT for the specified amount of time before buying resident license, etc.). It's very easy for the state departments of FW to find people claiming residency in two states. The timing of any transition to residency in another state requires attention to detail in order to stay legal.

The rest of it is just figuring out if it pencils out for you personally.

[Stein]

What do you do if you become a resident of another state in the middle of a license season?  Is there a way to turn your WA license in before you buy the new resident one in another state?