Just do it!

I did and am keeping all my money besides the FICA and Medicaid thats taken.

As a bonus, claim residency in a state that has no income tax. I used Texas, but there are 6 others I believe.

Goodluck,
Cassius

Claiming residency means you'd better have a plan to support it during an audit. If the feds find ANY discrepancy, they share it with the state revenue services.


You're keeping ALL the money? If you make more than the limit for the exclusion, I hope you've got some set aside for the eventual bill that you'll get once you file.
Unless you live permanently outside the US and you're a true EXPAT, you'll still end up owing on the remainder of your income. Certainly, investing will likely make you more money than letting Uncle Sam keep it until next Spring.

Cassius wrote:

Just do it! I did and am keeping all my money besides the FICA and Medicaid thats taken. As a bonus, claim residency in a state that has no income tax. I used Texas, but there are 6 others I believe. Goodluck, Cassius

Do not be giving advice which could get people jammed up. Keep it legal or don't give it.

This is legal, look up residency. Since no one here is currently living ANYWHERE in the U.S, who is to say what state I reside in? If it wasnt legal, I would not have been able to do it. Think outside the box, but if not thats your call. Please don't accuse me of giving bad advice or breaking the law.

TP 43, TP 44, TP 45, TP 47 and TP 48
Accept self-declaration as verification of residence.

www.texasonline.com/po...en/liv/9/6

A person does not need to live in the state for a specific period of time to be considered a resident.
www.dshs.wa.gov/manual...ency.shtml

Become a Washington State Resident
Its easy to become a Washington state resident. Just say you want to be a resident and then take some action that proves that you intend to stay.
access.wa.gov/living/r...dency.aspx

These are just 2 states that I had time to look up. I am sure the point is made. Back to the 330, it's a wonderfull thing...

Cassius

Cassius, just because you've done it doesn't mean it is legal. One can make a lot of decisions and take lots of action, but they aren't necessarily legal because you've gotten away with it.

The point, speaking from a criminal investigations standpoint, is not made.

Did you buy land there? Do you own land in another state with taxes?
Did you register a vehicle there? Do you own vehicles registered in a state with taxes?

Do you have a driver's license or identification issued by that state or do you still use such documents issued by a state with taxes?

Can you legally buy a gun in that state? If not, you probably shouldn't claim it as residency for tax purposes. To do otherwise is to leave yourself open to scrutiny and financial penalties. Tax evasion is pretty serious to the bean counting agents that work for the states and the IRS.

The box you recommend thinking outside of is quite possibly a 10X10 with bars on one side.

I'm no tax lawyer but claiming residency in a state that you quite possibly have never even been to or actually live in would be lying. Is that not correct?

I agree Jody. Such a strategy smells like tax evasion, not tax avoidance. I hope it works out for you Cassius; you don't want to take it in the hinder on an audit.

Still, Cassius is ahead of some guys I know that decided they just weren't going to file period. I can't wait till one of them gets caught. The IRS isn't shy about passing out penalties to go along with the original tax owed plus interest.

By way of example, my wife rolled-over a small $15,000 IRA and the IRS saw it as a disbursement. They sent us a letter advising that we owed them $11,000 and change in taxes, penalties and interest. As you can see, this is almost as much as the disbursement itself. A letter to the IRS showing that it was in fact a rollover solved the problem, but as you can see, evading taxes is a very expensive proposition.

I use a CPA with experience handling these kinds of cases. Doing the right thing will always work and it makes sleeping at night, as well as looking at yourself in the mirror, much easier.