# Keeping an Address in the U.S.



## Bircher (May 17, 2011)

I'm moving to Canada from Michigan and plan to keep an address in the U.S. for banking, etc. What I'm wondering about is state tax. Say, for example, that $1,000 in interest is reported on a 1099 that has a Michigan address. I would, of course, report that on my Canadian tax form (and the one to the IRS), but I wouldn't file a Michigan return at all. Would Michigan somehow be informed of the 1099 (I know banks send copies to the IRS, not sure about to states) and expect a cut?


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## philobert (Apr 9, 2011)

Bircher said:


> I'm moving to Canada from Michigan and plan to keep an address in the U.S. for banking, etc. What I'm wondering about is state tax. Say, for example, that $1,000 in interest is reported on a 1099 that has a Michigan address. I would, of course, report that on my Canadian tax form (and the one to the IRS), but I wouldn't file a Michigan return at all. Would Michigan somehow be informed of the 1099 (I know banks send copies to the IRS, not sure about to states) and expect a cut?


they willl expect a cut. head out to neveda (reno etc.) where there is no state income tax and get a PO box in a UPS store or some such (there are several). have some other bills sent there and if your bank or other investment companies give you grief send them copies of the other bills to show proof of resident. btw, they will, for a fee, forward your mail to you anywhere in the world, if need be.

it can work...well, that's what i heard from a friend of a friend. 

cheers


phil


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## Newyorkaise (Nov 30, 2010)

You are not a resident of Michigan simply because you maintain an address for convenience; you are a resident only if Michigan is your permanent home: "the place you intend to return to whenever you go away" as the state so nicely puts it.

As a nonresident you must pay state income tax on a limited number of items, such as salary, wages or other employee compensation earned in Michigan, gambling or lottery winnings in the state, capital gains from sale of Michigan real estate...check the state's website and read the instruction booklet for individual income taxes (the info on nonresidents is on page 7 of the 2010 instruction booklet). I don't see interest income from a bank account mentioned, although you may have other interests in the state that would be included.

There's no reason to pretend to be a Nevada resident - the whole point of becoming resident in Canada is that you're not going to be a resident anywhere in the US, right? It's enough that (as you clearly understand) you're going to have to file with the IRS for the rest of your life just because you hold US citizenship.


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## Bircher (May 17, 2011)

Thanks for the replies. An article I read at suite101 (I'd list the URL, but it's not allowed...go to the site and search on "expat") also recommends switching my address to a no-tax state.

However, that is an inconvenience and extra expense, and I'd prefer to simply use an address that I have quick access to (less than one hour away). 

I understand that I would actually be a nonresident, and therefore would not have to file a tax form, but I would think that Michigan would see the Michigan address and expect a return. 

I know there are a lot of expats using U.S. addresses for investment reasons (Canadians can't use their address with Vanguard, for example), so others must have run into this situation before.


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## philobert (Apr 9, 2011)

[QUOTE(Canadians can't use their address with Vanguard, for example[/QUOTE]

how do they do this? don't they need a US ssn#?

just curious.

cheers

phil


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## Bircher (May 17, 2011)

There are many Canadians who worked in the U.S., then return to Canada. What to do with the IRAs they leave behind is a major problem. If you have it at a place like Vanguard, you have to quickly transfer it or they'll close it, creating a taxable event. So, a number of people simply supply a friend or relative's address instead of their Canadian one. 

Then, there are also U.S. citizens who move to Canada and have IRAs and other investments. 

My question is: what if the address you use is in a state that taxes investment income? Is that a problem?


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## philobert (Apr 9, 2011)

Bircher said:


> There are many Canadians who worked in the U.S., then return to Canada. What to do with the IRAs they leave behind is a major problem. If you have it at a place like Vanguard, you have to quickly transfer it or they'll close it, creating a taxable event. So, a number of people simply supply a friend or relative's address instead of their Canadian one.
> 
> Then, there are also U.S. citizens who move to Canada and have IRAs and other investments.
> 
> My question is: what if the address you use is in a state that taxes investment income? Is that a problem?


and how do you get around the USA ssn# requirement?

phil


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## Bircher (May 17, 2011)

A Canadian who has a visa to work in the U.S. would have a Social Security number.

I, as a U.S. citizen, have a SSN. 

My problem doesn't have to do with lack of a SSN, but rather with the possibility of being taxable in the state where my mailing address is located.


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## Newyorkaise (Nov 30, 2010)

If the nature of your income falls into one of the limited categories for which Michigan taxes nonresidents, then you may have reason to worry, but apart from that, I would think you should be OK. As I've said before, simply having an address there doesn't make you a resident, and you'll have all the indicia of residence somewhere else if the state comes asking.

If you're going to be subject to nonresident tax based on the nature of the income, then it may after all make sense to "move" to another state - but in this economic climate, I wouldn't be so sure that the states that currently don't have an income tax are going to be able to sustain that position indefinitely.

Good luck in any event.


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## Bircher (May 17, 2011)

I called the state tax department and asked whether having a 1099 with an address in the state would make me taxable there. The answer I received was that I probably would hear from the state if I didn't file a return, but if I proved my residence was elsewhere, it shouldn't be a problem. So, that's exactly what you said.


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## philobert (Apr 9, 2011)

JohnDeep said:


> Hey jude!


I am the eggman and just where the hell did the walrus get off too!!!!




phil:tongue1:


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