Hi All,

I'm about to begin working overseas nearly 100% of the time. As I won't be a physical resident of any state, how is my residency determined? My work has offices in DC, California, and Texas and I'm currently paid through our DC office (I rented an apartment when I lived there). I would like to switch to being paid through the Texas office so as not to incur the much higher tax burden of DC (where I won't physically live anymore).

I do not have a home or other residence that would be considered my primary residence (I'll be living out of a suitcase and in hotels overseas). Best I can tell, Texas residency is determined by having a drivers license, registering to vote, and mortgage or car registration (I will have neither a mortgage nor car in Texas). I will probably be physically in Texas less than two weeks a year and I'll be in a hotel for that. I just want to make sure I'm not committing tax fraud or something here by claiming residency in Texas? Thanks very much!

-Dave

You may look at getting a address with a mail forwardng service.

If DC determines residency based on domicile (most states do), then you will be considered a resident of DC until you physically move to another location and intend to remain there indefinitely. Intent is determined by your actions. Some states (and possibly DC) have special rules that treat you as a nonresident if you are located outside of the state for most of the year, even if you continue to be domiciled in that state.