PCSing out of CT, should I change my state withholding?

[Denno1]

I am AD military, and CT is my home of record. I am currently stationed in CT, and will be moving out of state where my cumulative days spent in CT for 2024 will be <183. Based on this I believe that for 2024 I will be a part-year resident. As a part year resident, should I change my state income tax withholding to be exempt once I leave the state, or maintain it as is? It was unclear to me whether I will owe CT state income tax as a percentage of my time in the state, since none of my income is CT-derived, it's solely my military income, or if I will owe tax higher than let's say 122/365*(what I would have owed if I were a full time resident). Thanks!

[SteamTrain]

@Denno1 

No, do not change it.  You are still considered a "Resident" of CT for the entire year, no matter where stationed ...at least for 2024

CT does have some complex situations where you will be considered to be taxed as a non-resident of CT (for state tax purposes)...but that doesn't mean you are a resident of the state you are posted to...that is just for CT tax purposes.  Read the examples lower down on the page on the following CT web page:

IP 92(2.5) Connecticut Income Tax Information for Military Personnel and Veterans

___________________________________

Note: that even though you may be posted out of CT for entire year...sometime in the future, you do not become a domiciled resident of any other state that you are posted to, unless you take legal steps to become a domiciled resident of that state that you are posted to.  In order to do that, you would need to file a DD form 2058 with your Military HR/Personnel and finance offices to change your "State of legal Residence" (SLR).  Such a DD2058 submission must usually show you have taken steps to change your Banking, Drivers Lisc, Car registrations, registered to vote etc...etc.. to the new state.

BUT, as a military member, you are not required to do so, even if posted in another state for a few years. Most military service people do not do that if they are only in service for a few years  (tthus limiting the mess of part-year tax returns), and are then only subject to the state tax rules for their HOR state....but some occasionally do change their SLR if they decide to make a career in the service.

Read also the following TTX "Help" page:

What is my military state of residence? (intuit.com)

[Denno1]

Okay, understand. I’ve PCSd from CT to HI before, but it was at the end of the year so never had the part-year portion. So for 2024 treat it as if I’m a resident and then since I’ll meet all three conditions to be considered a non-resident in 2025+ (I will maintain a permanent abode outside CT and spend <30 days in the state each year), shift to an exempt withholding status and file nonresident if for some reason taxes get withheld.

[TomD8]

@Denno1 --

Here is Connecticut's rule:

"If your domicile was Connecticut when you entered the military, your domicile does not change unless you have voluntarily given up your Connecticut domicile, established a new domicile in another state, and taken necessary actions to change your legal home of record with the Armed Forces."

https://portal.ct.gov/drs/publications/informational-publications/1992/ip-9225-connecticut-income-ta....

In other words, as long as you are on active military duty you must file taxes as a CT resident no matter where you are stationed, unless you change your SLR (State of Legal Residence) with the military. This Army memorandum (which applies to all service branches) explains the process of changing your military SLR:

https://home.army.mil/stuttgart/application/files/1415/4712/5692/HRSLR.pdf

Bottom line: unless you officially change your SLR with the military, you should continue withholding for CT.