Most Sailors don't know this, so here is an item that will save them $1000's.

[Craig]

*** Your sailor can save $1000's ***

Most Sailors don’t know this, so here is an item that will save them $1000’s…..

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Per the state income tax. Each state has different rules concerning how military pay is taxed. Example, I'm from Colorado, our state requires all of it citizens to pay state income tax. It doesn't matter if you're in the miltiary, or, you haven't lived in the state for 20 years, if it's your state of residence you must pay.
To make sure you get the up-to-date info, go to the state links posted in the below links to find what your state income tax rules are.

http://www.jag.navy.mil/organization/documents/tax/2013STATETAXGUID...

Here is what I wrote on my website, NavyDEP.com, a couple years ago...What a lot of sailors did, including me, is change their state of residence. It takes like 5 minutes and will save you a thousands of $$$ over the years.
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Hey all,
Most Sailors don't know this, so here is an item that will save them $1000's.

Nothing ticks me off more than a state that collect taxes on Sailors that aren't stationed there, and will never reap the benefits from that state when they are gone during their enlistment period (ie 4 to 6 years).

To understand this you must know two meanings:

"Home of record" -where they lived when they enlisted- this cannot be changed! 

"State of Residency" this CAN be changed. It depends on the desired state's residency that the sailor chooses. 

These are two different things. It isn't always an advantage for the Sailor to continue to claim residency in their "home of record" state. Colorado is a prime example. They just collect the money and the sailor never reaps any benefits. California on the other hand gives great in-state college tuition rates. The rule of thumb is become a residence of a state that has no income tax. Then, 1 year before your enlistment is up, switch to a state that provides great benefits...

Remember, you cannot change your residence for monetary gain (i.e saving taxes), however, you can change it because you want that state to be your new residence (hint, hint, wink, wink). So don't go into your personnel office and say you want to change residence to save money.... Also, you will need an address in that state. While in Pensacola, most sailors use their base mailing address. You can also use friends or relatives address in tax free states. 

Yes, some states have rules that say if a military member is stationed in another state, that they are exempt from paying taxes. But these states are few and far between. (I beleive they are New Jersey, New York, and Oregon). To get out of pay taxes in these states use DD-2058-1. Which can be downloaded here ---> http://www.dtic.mil/whs/directives/infomgt/forms/eforms/dd2058-1.pdf

So what does the Sailors do from states (ie like Colorado) that make Sailor pay taxes, even though they have nothing there? Well, years ago, when I was fresh out of boot camp and in "A" school, EVERYONE switched their State of Residence (Understand this is totally different than "Home of Record") to a state that don't have State taxes. Since my schooling was in Florida, I had an address in Florida, I became a Florida Residence. 

How do you change your residence? 1st you must have an address in that state that your mail can go to (this is only until you transfer, then you just submit a change of address form thru the post office, just like everyone else does at any duty station you go to). Since I live in Pensacola in the barracks, then I had the address. Secondly, there are 5 different ways to declare another State to be your residence. The easiest is making a "Last Will", however, all the rules are on the form.... To do this, all you need to do is fill out DD-2058 which can be downloaded at the same site above --->
http://www.dtic.mil/whs/directives/infomgt/forms/eforms/dd2058.pdf

So, if your Sailors are tired of paying state tax, then have them change their residence to a state that doesn't collect taxes.
Currently, the 7 states listed below do not tax their residents' income. If you are an official resident of one of these 7 states, you don't need to file a state tax return for that state:
Many other states give breaks to military personnel. Check the below link to see if your sailor will benefit to change their residence.
Alaska
Florida
Nevada
South Dakota
Texas
Washington
Wyoming

http://www.jag.navy.mil/organization/documents/tax/2013STATETAXGUID...

Since alot of Sailors go to "A" school in Florida, they already have the address (ie Pensacola), just have them make a "Will"...... It's that simple!!!

Craig
PIRGifts.com (Providing funding for NavyDEP.com)
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Since alot of Sailors goto "A" school in Florida, they already have the address (ie Pensacola), just have them make a "Will"...... It's that simple!!!

[roaminggnome61]

Does the sailor need to make the Will in the no taxing state, like Florida?

[Dee (CTI3 Spencer&Erin)]

Great info Craig!  I've been telling my daughter-in-law to do this for over a year!  She is from OH and paying their income tax each year and then having to file an OH return to get the money back.  I keep nagging her to change her State of Residency to WA and keep the money upfront!  This will be especially easy for her since she got her driver's license here in WA last year and registered to vote.  She just used our address on her documents.  

I've forwarded her your email and copies my son as well.  Hopefully they will stop procrastinating and get this change made!!!  

[Craig]

Roaminggnome61 - For this benefit (ie State of Residence) you don't need a will.  The will only enforces the paperwork and makes it all legal for those not living in a tax friendly state.   Most sailors really don't need a will, since they really don't have anything.  

Dee - I have been trying to beat this in my daughter's head for a year now.  It really drives me crazy.  Now, when things come up and she needs to borrow money, I always say, "Geez, if you changed you State of Residence" you wouldn't need to borrow money from me....  

[Dee (CTI3 Spencer&Erin)]

Glad it's not just me going crazy!  Think I'll tell them to make this my Christmas present and GET IT DONE! ;)

[idahojeep]

Idaho does not charge state income tax to active duty military personnel.  This has saved my twins mucho $$$.