# Maintaining a legal residence in US



## OMTO (Jan 24, 2021)

Is it better to maintain a residence( Fl) in US for purposes of Taxes, health insurance, credit cards etc than completely move to Mexico and return to US every 180 days or temporary residency in Mexico.


----------



## MangoTango (Feb 8, 2020)

OMTO said:


> Is it better to maintain a residence( Fl) in US for purposes of Taxes, health insurance, credit cards etc than completely move to Mexico and return to US every 180 days or temporary residency in Mexico.


The key word in your title is LEGAL. You can only have one LEGAL residence. The requirements are readily available online.


----------



## eastwind (Jun 18, 2016)

I am not a lawyer but,

But regardless of your _residence, _you also have a _domicile. _Domicle is a legal term of art used to designate the state that you are _legally _assumed to be intending to return to. It is generally the state you last had a legal residence in when residing in the US. (For it to be another state would require various legal evidence). Just as you are under obligation to file US federal income taxes while living overseas, you are obligated to file state income taxes in your state of domicile as long as you are a US citizen. With a domicile in florida, you are in luck, no income taxes to file. If you were, for example, a resident of New Jersey, I'd recommend that you move to Florida or Texas for a year to establish a different domicile before moving on to Mexico.

It is helpful to maintain a US mailing address, but that's not a residence. There are 'commercial mail receiving agencies' in some states that will give you a mailing address, open and scan all the mail that comes to you at that address, and either email you the scans or provide them to you online via their web site. I use one such service in Texas.


----------



## MangoTango (Feb 8, 2020)

But I am not sure anyone will ever ask a US expat in Mexico what their domicile is. Am I right ?


----------



## MangoTango (Feb 8, 2020)

MangoTango said:


> But I am not sure anyone will ever ask a US expat in Mexico what their domicile is. Am I right ?


Adding on - years ago - when we moved to Mexico - we had our mail forwarded to a friend in a nearby county. Not only did the elections supervisor automatically register us to vote in that county - the major credit agencies now set that as our default US address. Of course those agencies can't accept a Mexican address - so we are doomed to perpetuate an address which is no longer our own (or throw way decades of credit history - not that we need it that much any more).


----------



## eastwind (Jun 18, 2016)

If your domicile is in a state that collects estate taxes, it will eventually matter, if you are above their exemption limits. 

If your residence before moving to Mexico is in a state that collects income taxes you will not be able to just wave your hands and declare that you are a resident of another state for state income tax purposes - you will have to really establish residency in another state and have the documentation to prove it to the satisfaction of your old taxing state. Virginia is notorious for being extremely "sticky" and doing their best to collect state taxes from ex-residents.

Many US companies (banks) will keep records of your last known residence, and they won't update it unless you tell them specifically you are no longer a US resident, in which case they may want to close your account. Retirement fund companies like Fidelity may, if you tell them you are not a US resident, limit your investment options and/or force you to switch to an international investment account.

Your cell phone carrier may require you to have a US mailing address in order to keep your US number and account open, if you wish to do that. There are other ways to keep a US phone number, however.

The point is maintaining a US mailing address can avoid awkward questions and issues. If you aren't going to have any US bank accounts or retirement accounts, or try to keep a US phone number, then it doesn't matter.

This whole issue is not connected to the issue of what your immigration status in Mexico is - the OP's question was a little confused on that point. It's perhaps helpful to keep a US mailing address regardless of whether you return every 180 days and live on a tourist visa or obtain mexican residency. 

If you can afford to maintain two physical residences, i.e. a home in Florida and a home in Mexico, then I think it's better to do so for at least a limited time to ease your transition to Mexico and give you a lower-cost "bail out" if you don't like it (verses giving away or selling off a lot of stuff that you don't want in Mexico, then moving back and having to buy it all back).


----------



## OMTO (Jan 24, 2021)

MangoTango said:


> But I am not sure anyone will ever ask a US expat in Mexico what their domicile is. Am I right ?


Probably not.


----------



## OMTO (Jan 24, 2021)

eastwind said:


> If your domicile is in a state that collects estate taxes, it will eventually matter, if you are above their exemption limits.
> 
> If your residence before moving to Mexico is in a state that collects income taxes you will not be able to just wave your hands and declare that you are a resident of another state for state income tax purposes - you will have to really establish residency in another state and have the documentation to prove it to the satisfaction of your old taxing state. Virginia is notorious for being extremely "sticky" and doing their best to collect state taxes from ex-residents.
> 
> ...


I think that seems to be the best is to have a place in Fl until complete transition which will never will come since I will want to use my Medicare A and B use my car etc.


----------



## OMTO (Jan 24, 2021)

OMTO said:


> I think that seems to be the best is to have a place in Fl until complete transition which will never will come since I will want to use my Medicare A and B use my car etc.


Thank you


----------

