We are retired and are snowbirds between Michigan, 6 mo and Oklahoma, 6 mo. Michigan taxes retired people less than Oklahoma. I have been an Oklahoma resident on my federal taxes. Can I change my resident status to Michigan for better tax treatment? I have been filing partial year residency in both states, allocating my income according to my time living in each state. But the questions presume that the moves are permanent and not temporary, leaving me to question if I am filing correctly. What defines my residency?
You describe yourself as a snowbird, so I assume you originated in Michigan and "flew south" for the milder winter in Oklahoma. So, if your domicile was Michigan during your working years and you intend to return there, as your current pattern of travel would indicate, then Michigan is still your domicile, and is the place where you are a resident for tax purposes. Michigan would have the right to tax you worldwide, year-round income, but should allow a credit for taxes paid to Oklahoma.
You would file a nonresident (not part-year resident) tax return in Oklahoma, reporting only your income earned in the state.
You describe yourself as a snowbird, so I assume you originated in Michigan and "flew south" for the milder winter in Oklahoma. So, if your domicile was Michigan during your working years and you intend to return there, as your current pattern of travel would indicate, then Michigan is still your domicile, and is the place where you are a resident for tax purposes. Michigan would have the right to tax you worldwide, year-round income, but should allow a credit for taxes paid to Oklahoma.
You would file a nonresident (not part-year resident) tax return in Oklahoma, reporting only your income earned in the state.