Can't decide on state of Domicile

[wannaclassc]

Originally Posted by keymastr

Washington state is actually a great place for this, just not in King, Pierce or Snohomish counties. Check out the insurance, license and sales tax rates in Eastern Washington and you will be pleased. And no state income tax, plus you keep your Apple health plan. Overall, much cheaper than South Dakota or some of the other options.

Sales tax is still high and I hate most people in the state. I'm moving on from there. Apple Health is really only for Washington State care. It's limited elsewehre.

[wannaclassc]

Originally Posted by Traveler4321

BIG LOOP HOLE.
One can have a billion dallars in a non intrest account or in your matress.
As stated, it goes by taxable income, as I described, in my post.
I live comfortable, on, cash/after tax money and give myself a raise every year.
So, cash, I don't exist, to the IRS, I already paid tax on it. I do, do CD's but the intrest isn't enough to get me to the have to pay/file taxes.. My domicile adds is in SD so no state taxes.
So, as stated, I have to project an income of said $14,000 taxable for the year, but, wont have that much taxable income, so I will file and get all the copay back. $5,200. I didn't need to file for 2018 or 19, but, when the stimulus free money came about, I filed clamed the real number of $6,000 for that year taxable and didn't pay anything, but got a $1,200 check in my account. I am not living high on the hog, but can eat bacon every day.
As long as a single and or couple stay below the need to file number, you don't have to file, taxes.
So, what works for me, from age 53, retired till age 65, is live on after tax saved, secure invested, and then at age 59.5, draw from IRA, but stay below the said need to file tax number. Playing within the rules, of at age 59.5 I can draw about $10,000-12,000 a year out of said IRA and not pay any taxes on that, as long as my total taxable amount is below the now $12,200.
At age 65, its collect 2 pentions and ssn.
I am 56 now will be 57 in a couple months. When I paid for healthcare out of pocket it was $430 a month first year, then $450 a month next year, then I discovered the loop hole. By letting my pentions and ssn sit and gain, I gain 5 times what I would get now.
So, thinking outside the box. A simple $350,000 after tax money invested safe in CD's at a simple average 2% and a simple $250,000 In an IRA, one should be able to live fine doing the rv thingy, for said 12 years till 65.
So the loop hole saves me health insurance costs, till they take it away.
Its not a short explination, but its sweet.

That would require you to not invest your money though. My stocks are up 50% just this year. For your 350k, is an opportunity cost of $173,000 that you're passing up on to avoid paying 5k a year.

[travelorer99]

Originally Posted by wannaclassc

That would require you to not invest your money though. My stocks are up 50% just this year. For your 350k, is an opportunity cost of $173,000 that you're passing up on to avoid paying 5k a year.

I invest in safe and solid, no chance of loosing, but no big gains. I sleep solid at night.
I did mutual funds for years, but before retiring, I went solid and safe.
I just need a certain amount to get me to 65, then money is no object.
I could always go back to work, but what fun is that.
Doing what I am doing saves me $10,000 or more in not paying taxes and paying for healthcare.
The economy and stockmarket can crash, and my would don't change.

[PLDieter]

Originally Posted by wannaclassc

I'm taking some time off work and looking at RV'ing for the winter. I'm struggling to figure out a plan for domicile. I haven't bought an RV yet and would stay in warmer states for the winter probably heading over to Florida

Currently, I live in Washington State. I have no income but savings. I'm on Apple Health in Washington State right now but don't have medical needs really.

Insurance - This seems to be an issue. The options are either Medicaid in some state of something on the exchange. Medicaid would be bad as it doesn't cover people who travel around. There's a PPO option in Florida that looks decent but expensive. South Dakota doesn't seem to have good options.

Washington State - doesn't seem like a great option as I hate the politics, don't want to stay there, there's 10+% sales tax and registration costs are crazy and vehicle values are totally overrated by the tax system.

South Dakota - Lowest taxes for buying motorhome but insurance options suck

Florida - Low taxes for motorhome and a decent PPO option if i choose to buy insurance

Other options - Any i'm not missing? I'm struggling in pulling the trigger on a decision.

Any advice?

Go to Escapees.com. They have some really good info on establishing a domicile, and can help you do so in S. Dakota or Texas. Their mail handling service also seems to me to be the best, and quite affordable.

I, too, face health insurance problems. Although I'm on Medicare, I also have a supplemental plan that is state-dependent. I've decided that I will use my daughter's address here in my home state (with her permission, obviously,) and use that for my domicile residence. That covers vehicle registration, driver's licensing, health insurance and voting.



I then use the mail service for everything else. They have a service that opens and scans every piece of mail and posts the scans on a secure website, allowing you to see each piece and delete, or have them forward the physical letter to you. No more junk mail! They will also automatically toss any advertising fliers, and handle packages from all major carriers.


If you don't have the option of maintaining a domicile in WA, check out Texas. If you don't like WA politics, you will probably feel right at home in TX!

[Kamir]

Originally Posted by wannaclassc

I'm taking some time off work and looking at RV'ing for the winter. I'm struggling to figure out a plan for domicile. I haven't bought an RV yet and would stay in warmer states for the winter probably heading over to Florida

Currently, I live in Washington State. I have no income but savings. I'm on Apple Health in Washington State right now but don't have medical needs really.

Insurance - This seems to be an issue. The options are either Medicaid in some state of something on the exchange. Medicaid would be bad as it doesn't cover people who travel around. There's a PPO option in Florida that looks decent but expensive. South Dakota doesn't seem to have good options.

Washington State - doesn't seem like a great option as I hate the politics, don't want to stay there, there's 10+% sales tax and registration costs are crazy and vehicle values are totally overrated by the tax system.

South Dakota - Lowest taxes for buying motorhome but insurance options suck

Florida - Low taxes for motorhome and a decent PPO option if i choose to buy insurance

Other options - Any i'm not missing? I'm struggling in pulling the trigger on a decision.

Any advice?

Vancouver, WA area is a great choice. No income tax in WA and simply hop across the border into Oregon for any large ticket items with no sales tax. Really, the best of all worlds...

[W5CI]

Originally Posted by Rollin101

Tn doesn’t have a state income tax.

But TN has the Highest sales tax in the country, I know because I am in Ark who has the second highest sales tax in the country

[Roadyacht1]

Another plus on Florida is the mail service ST BRENDANS ISLE in Green Cove Springs.
They are an EXCELLENT mail handling service and will help set you up for all your needs to make the change to FL. I have been with them for decades. They also have a scan service where they will scan your contents and you can them get it from your account. So unless you need original hard copies, you can do most of your mail digitally. I love it.

[RVWannabe1]

Hey, why not California? Income tax is only 9.3% to 13.3%, and registration on a 4-year-old Class B Roadtrek is only $750! And don't forget the mandatory smog check every two years for $60 or so.

[92SafariTrek]

Regarding Florida: I use Good Sam Insurance and the insurance rate differ depending in what zip code u call home

[92SafariTrek]

RegardingCali: at least along the coast I found the rates of RV parks astronomically Extravagantly priced even for average star rated parks

[Grandpa5x]

TN taxes are dependent on which county you live in 9% sales tax real estate is high, vehicle tags are dependent upon where you live. We live in Coffee county, city of Manchester, we pay city and county real estate tax, I drive a 2017 car/toad it costs $26 for a tag, we had a 2002 Mountain Aire that the tag was $25 and it wouldn’t have mattered if it was new. Our daughter and SIL had a 42’ 5 yr old 5th wheel that costs them $25. This is the catch as I said the county you “live” in determines how much you pay. The next county over might be twice that, so it pays to do your homework before before getting a mailing address and they require a form of ID such as a rent receipt before you can register you vehicle or get your DL.

[inkahauts]

I’d suggest looking into Arizona.

[augerdogger]

I found the responses useful. We live in NM with a 5% State income tax and live in Bernalillo county with a combined 7.9% sales tax. Property tax is .81% of assessed value, license plate fees are $100 plus, $2,000 for '83 1 ton pickup. We are considering TN.

[pduggs]

Originally Posted by twinboat

Michigan is the highest, Florida is way down in 3rd place.Attachment 305465

We moved from Michigan to Florida. We saw little change in auto insurance costs. The big improvement was registration fees. Michigan was $1880 per year. Florida $60 per year. Big difference.