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    mividafantastica's Avatar
    mividafantastica Posts: 3, Reputation: 1
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    #1

    Jan 6, 2008, 05:16 PM
    Dual residency and tax filing
    I have a close friend who lives full time in NJ and for the purposes of his divorce and his tax returns, claims NJ residency. He also works in NJ. However, he has a Pennsylvania driver's license, car registration and insurance - he uses an empty house that belongs to his dad for an address in Pennsylvania. Since he grew up in that house, he feels he should be able to keep it as an address. Should he file taxes in NJ or in Pa or both? Can he claim dual residency if he does not live in the Pennsylvania house, yet does not have a NJ driver's license? Is he putting himself at risk of violating any laws with this arrangement? Thank you!
    twinkiedooter's Avatar
    twinkiedooter Posts: 12,172, Reputation: 1054
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    #2

    Jan 6, 2008, 05:52 PM
    He's setting himself up for more headaches having the arrangement of drivers license in a different state from where he actually lives and car registration in wrong state also. A person needs to have their drivers license and car registration at the address where they actually reside. A person generally has 10 days from when they move to properly notify the DMV of their new address. For starters he should get the d/l in the state he actually lives in. If say, he has an auto accident and wishes to claim damages or wants to claim physical injuries he quite could have huge problems come at him where he least expected them to come from. Legally you live where you have your clothing... not the house where you grew up in. If he is doing this for income tax purposes and wishes to pay lower taxes, then I would say to him. "Mr. stop fooling yourself and get with the program of paying your fair share of where you actually live and work". The telling phrase I picked up from your post is the "divorce" aspect. What is he trying to hide?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #3

    Jan 7, 2008, 07:34 AM
    I agree with Twinkiedooter.

    Your friend is making his life a hell of a lot more complicated than necessary.

    He has to file in NJ regardless, because he works there. By maintaining residence in PA, he obligates himself to file in PA as well. The tax credit offered by PA for paying NJ taxes will keep him frombeing double-taxed, but he has to file a PA tax return when it is NOT really necessary.

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