Husband and wife with 2 different domiciles?

Sunshine cindy · February 28, 2017

So I will continue to work remotely as we venture out on our retirement plans. Husband is retired and when I retire we will most likely change the domicile out of WI to either SD or TX. What would be the benefit/reason for husband to claim SD/TX as domicile now but since I work for company in WI would remain tied to WI, or can I change Domicile also even if I am employed in WI? Will by buying used RV and of course the lower taxes would be nice to claim from SD or TX! Has anyone done this or is it possible or feasible?

Kirk W · February 28, 2017

If you do not share domicile, it might mean you can't file joint federal income tax, so check on that. I'm not sure that it would mean such but it is something to check on. Your husband moving to SD or TX could save you some money on the registration fees and state income tax, but if he actually stays in WI for too long the state could force registrations there. For him to do that, you probably should put all vehicle so registered into his name alone to keep things clear. I have never researched this type situation.

The key to your domicile options is your employer. Only they can tell you how a change of domicile may effect you as it might void any insurance you have through them of some other benefits. There could be tax issues for them or they could even have rules that make no sense, but are the rules. They are the only ones who can tell you these answers.

Dutch_12078 · February 28, 2017

Being domiciled in one state while working in another is really pretty common. As Kirk said though, check with your employer and health insurance carrier for any implications in those areas. A tax advisor could be another useful resource.