SDGFP cracking down on non-resident resident licensing?

ND and MI have tax reciprocity laws. If you are a ND resident, you can work in MN and pay ND taxes (not tax free, but it is far, far less than MN).

Michigan of all places ... strange one.

Per MN Tax Department:
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BRITTMAN said:
I do not buy that one. I would like real proof; newspaper article, state publication, etc...
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Not suggesting MN, or whatever state felt slighted, succeeded in their complaint, but the issue was raised and discussed in a political environment. I understand the issue, don’t care one way or another.
 
BRITTMAN said:
I do not buy that one. I would like real proof; newspaper article, state publication, etc...
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It’s real. It’s called the “source tax”. Forgot the name, knew it was real. There are a handful of high tax states, many out
East, that come after certain sources of retirement income that was deferred while living there if one moves to a low/no tax state. If one jumps through enough hoops it can be avoided, but the hoops are a PITA. Fodder for your CPA. I was a Financial Advisor for 34 years, bumped up to some of these issues, but would play hot potato before giving advice on complex tax issues like that. Had to, not my deal.
 
I think what can happen is people retire and their life changes. Might spend 5 months a year in Florida. A couple months somewhere else etc. I think for MN if you spend one day more than half the year in the state, then they want your tax$$$.
 
My parents, retired, were taking to me about moving to SD or IA. Either state would save them about $40k a year based on tax implications. I don't know all the ins and outs. My dad has been captain finance his whole life.
 
Bob Peters said:
My parents, retired, were taking to me about moving to SD or IA. Either state would save them about $40k a year based on tax implications. I don't know all the ins and outs. My dad has been captain finance his whole life.
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I may get a sex change and propose to you…I need in-laws like that!!! 🤓🍺👍
 
WOw did I open up a can of worms. From what I gather you can be a resident of SD for tax purposes and vehicle registration for far less time than to qualify for a resident hunting license. That I can understand,AK requires you to be a resident for 1 year to get a resident fishing and hunting license, but you have to be a resident for over 180 days to get the permanent fund dividend. I think SD is one of the states that doesn’t tax social security just like AK so it is beneficial to be a resident of those states. For me I will keep my AK residency and buy nonresident license.
 
benelli-banger said:
Mullin/Barens/Sanford Financial posted an article 4/11/23 about this…
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This article is better.

cm.wipfli.com

Make your plan for nontaxable retirement income

With the right planning, your retirement income could be nontaxable. Learn more about state taxation of retirement income and how you can prepare effectively.
cm.wipfli.com cm.wipfli.com


Not sure I would ever say ... Yea President Clinton ;)

I doubt I will ever lose MN residency, but one never knows.
 
BRITTMAN said:
This article is better.

cm.wipfli.com

Make your plan for nontaxable retirement income

With the right planning, your retirement income could be nontaxable. Learn more about state taxation of retirement income and how you can prepare effectively.
cm.wipfli.com cm.wipfli.com
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Not playing tax expert, just mentioned a concept that seemed at least tangential to what was being discussed. I’m not planning to leave my home state, not really sure where I‘d go if I did…not Florida, that much I know…I‘m not a fan of heat. I suppose SD…but I’d need my summers here next to Lake Superior. I guess 4/1-5/31 in SD, then 10/1-1/31 in SD or something along those lines. I doubt I’ll ever be anything but a MN resident.
 
Bob Peters said:
My parents, retired, were taking to me about moving to SD or IA. Either state would save them about $40k a year based on tax implications. I don't know all the ins and outs. My dad has been captain finance his whole life.
Click to expand...

Stay on their good side. $40K in MN state tax payments ... Married couple would have more than $500K in taxable income (after deductions).
 
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