SCRA

Residence & Home of Record

Current as of 5 FEB 10

SCRA

Residency Briefing Outline

• Background• Some Key Definitions• Domicile• Tax and Voting Issues

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Definitions

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Definitions

• Home of Record: Your home of record is the state from which you entered the military.

• Residence: Your residence it the pleace where you presently live. You are currently a resident of Germany. However, unless you intend to remain in Germany and make it your permanent home, it is not your domicile.

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Definitions

• Domicile: Your domicile is your permanent residence. It is the place to which, even if you were temporarily absent, you intend to return.

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DOMICILE

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Domicile

• This could be your home of record, but is not necessarily so. Once you establish a domicile, that place will remain your domicile until you move to a different location with the intent of making that location the permanent residence. You may have many residences but only one domicile. A spouse does not automatically acquire the residence of the other spouse, although they are often the same.

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Changing your Domicile

• Physical presence in the state where you want to become a legal resident.

• An intent to remain in the new state.– Register to vote and vote– Register and pay state income taxes– Register POV– State divers' license– The more contacts, the more likely you will be

considered a domiciliary or permant resident.

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Residence for Tax Purposes and Voting Rights

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General Rule: A Servicemember neither acquires nor loses domicile based on the presence in a state due to military orders

Residence for Tax Purposes

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• Military Income: Deemed earned in the state of domicile

• Personal Property: Deemed located in the state of domicile

• A Servicemember’s nonmilitary income is not protected by the SCRA

Residence for Tax Purposes

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• Non-military spouse’s income not protected by SCRA

Taxable by host state

Taxable by state where income earned

Spouse Tax Issues

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A state cannot include Soldier’s income when calculating state income tax bracket

for the non-military spouse

Spouse Tax Issues

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Voting Rights

• Home state (domicile) voter registration remains valid despite presence in another state due to military orders

• Be cautious about changing voter registration to the new (host) state.

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Warning Regarding Domicile

If Soldier loses “contacts” with state of domicile, the “new” state might pursue domicile status (and attempt to tax the Soldier!)

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Conclusions

• State residency is an important and can be confusing issue

• Different states have different requirements on “in-state status,” but they all generally start with your domicile.

• Consult with a Legal Assistance Attorney for more detailed information regarding specific state law questions.

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QUESTIONS?