Indeed!
One of the challenges of being a DoD civilian is moving around.
I was asked out of the blue would I like to put down TX for state tax, as they are one of the few states that don't have it.
I didn't actually understand what they meant, thinking that they had me confused with someone else since I was leaving HI.
This is what I was told by my deputy director:
"When we take jobs overseas, some people try to change their state to TX to avoid taxes. I hear it is not supposed to be allowed and I am not sure if the IRS or State of Hawaii will question it. I used to be a tax advisor. My question to you is, where is your home of record in the US, or do you have a home or other foot hold in another state? You technically are a resident of Hawaii because you live and work here, but your domicile is where you intend to return."
The crux of the biscuit is that last sentence: '...your domicile is where you intend to return'.
The DoD may send me anywhere after my tour to Europe is up. It can be NH, DC, OR, or they can send me back to HI. I simply cannot know where I will end up next.
When I signed up to military service, I was originally a dual citizen having lived in the UK for the majority of my life. In order for the military to pay me, I needed to have a US 'home of record'. My father lives in NY, so I naturally used his address for the sake of simplicity.
All I want is to do the right thing because I know of one individual who was hired out of HI and went to Japan for 11 years.
After he came back to HI, he was told to pay about $4K in back taxes, which turned out to be a goat-rope because of paperwork and bureaucracy of course!
This is precisely what I want to avoid IF and WHEN it is that I come back. As mentioned. I don't know when that will be or if I will ever return to HI, but it's better to get it done right.
Thank you.
Kind regards,
Andrew
