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I have a question about state income taxes?
My wife is planning on becoming a traveling nurse in the next few months and I'm retired so I'm going to tag along with her on her 13 week contracts of work. We live in Florida now and that will be our main residence even while traveling but I was wondering how my retirement check from the Treasury would be affected. Will state taxes be withdrawn from my monthly check if I'm with my wife while she is traveling or does the fact that my check goes into my account in Florida (my home base) make me exempt from that state tax? And, let's say that we decide to put all of our furniture in storage and move out of our Florida residence...would our new temporary (13 weeks) address make us residents of that state? If we no longer have a residential address in Florida then do we have to apply for a driver's license in the state that we are traveling to? Even if temporary? What about our cars? Would we then have to get new tags and registration in the new state even though we may be leaving it in 13 weeks. This is all sooooo confusing...now I know why they pay traveling nurses so much money! Thanks for the help :)
- LynneLv 69 years agoFavorite Answer
Usually working in a state for 13 weeks when you do not intend to stay there does not make that state your domicile. Each state has its own definition of what makes someone a resident for tax purposes.
The wages your wife makes will be subject to the taxes of the state she works in. She would need to file a non-resident return for that state. Your retirement income is not subject to state tax from a state that you are a non-resident even if you received the income while staying there.
Most people I know in your situation keep their state residence in one place. It is supposed to be the place they will return to when they are not away on a temporary absence (the 13 week thing can be a temp absence.)
Have you spoken to anyone at the agency?
- troLv 79 years ago
your tax home is where you work, in your case 'work' is the wife's and you are co taxpayers, probably filing married jointly, and short, temporary less than a year's assignment is not your tax home
if this is 1099 income, she files on Sch C and is able to use many of the travel expenses as business expenses
she will have self employment tax to pay
and as for getting vehicle registrations in each state that would more or less determine that you would be considered citizens of that state
the temporary nature of her work would probably preclude becoming a citizen of any of the states she will work in
when you file your tax return next year you will probably enter the address on that return where you can be reached by IRS if they need to contact you
if you have your SS dd to your account as r'qd you will have problems changing each time you get to a new location
the income she derives will increase your joint income and may possibly cause some of your SS to be taxable which would indicate that you should consider having some withholding
she will need to file 1040 ES each quarter on her anticipated taxes, including her self employment tax and anticipated income tax
- Cathi KLv 79 years ago
Traveling nurses do not become residents where they work. They usually keep their licenses and stuff in their home state. Where will you go between assignments?