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AZ residency requirements when working for 7 months


butch&fonda

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We are looking into our first, seasonal workamping gig.

 

Our season would start, the first of September and run until the first of April. This would be part time, at a private campground, as an employee (W4/W2 not 1099), for a site and rather minimal salary ($500, per month).

 

It occurred to me that there may be some residency requirements involved, that we do not want to get involved in, as we are still and wish to remain (at least for now), Indiana residents.

 

I know we will have to pay, then file the AZ income tax, for income earned there but what about our S.S. incomes?

 

Vehicle and drivers license issues are also main concerns, unless there are others that I'm not YET aware of.

 

Thanks for any info and help, We've got to let our potential employer know in the next few days.

 

Butch & Fonda

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Butch, you need to look into the residency requirements for AZ. In many states if you take a fulltime job there for more than a certain length of time you are required to become a resident. Now, most people with workamping jobs do not do that, but it may still be the requirement of the state.

 

AZ does allow a 6 month stay without requiring residency, but I don't think that allows for working. If you are working there that does change things. You need to look on their website at the residency requirements.

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Butch, as you noted, you will pay Az income tax on whatever you earn while working in Az. Whether you will also owe a proportional amount of Az taxes on all your other income, depends if you are classified as a "part year resident" or "non-resident", which can be a slightly grey area determined on case by case specifics.

 

Az uses the same language as several other states in their definition of "resident":

"Every individual who is in Arizona for other than a temporary or transitory purposes."

secondly they state that anyone who spends 9 months or more within Az is automatically a resident, regardless of your purpose or circumstances.

 

So the root question is, will they consider taking a 7 month part time paid position, a "temporary & transitory purpose". I don't know the answer in Az and I don't think you'll find an answer in writing anywhere. I can say from past experience in Ca that California would consider you a resident.

But the good news is that Az does not tax social security income, so what would be at risk is taxes on any investment interest, dividends, capital gains, etc (or private pension)

 

PS: it is possible to maintain your Indiana domicile and still be a Az tax resident. no where does it say you can't be a resident of more than one state at a time, for tax purposes

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You will have to specifically check AZ, but we are MI residents and I work 6 mo of the year in MS. I am able to file the MS state taxes as a non-resident. I do not have any other ties with MS other than being here in the winter and working a part-time job. $500 month would not be considered full-time income.

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I'm afraid that I don't like the answers that I seem to be getting (other than the "no tax on SS), not that any of them are wrong, they just haven't provided the "exception" that I've Been looking/hoping for.

 

From the AZ Drivers license manual: State law requires that you obtain an Arizona driver license and registration immediately if any one of the following applies. If you:

Work in Arizona (other than for

seasonal agricultural work).

 

Place children in school without

paying the tuition rate of a non-

resident.

 

Have a business with an office in

Arizona, that bases and operates

vehicles in this state.

 

Obtain a state license or pay school

tuition fees at the same rate as an

Arizona resident.

 

Have a business that operates vehicles

to transport goods or passengers

within Arizona.

 

Remain in Arizona for a total of seven

months or more during any calendar

year, regardless of your permanent

residence.

 

Are registered to vote in this state.

 

There is an exemption for students, but the furthest stretch of the imagination couldn't include us in that one.

 

Thanks for all of the information, I'm still open and looking for any and all information & suggestions.

 

Butch

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"Remain in Arizona for a total of seven

months or more during any calendar

year, regardless of your permanent

residence."

Well that seems to answer your question

I seem to remember some discussion a couple years on this topic as it pretains to AZ. The gist was that AZ went after income not earned in their state. But I am not sure of the details.

I would have an in depth conversation with a tax authority who can go to bat with the AZ tax people if needed

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The tax issue, is no problem for us. Since AZ doesn't tax SS benefits, our only taxable income would be from the Workamp position, which is minimal.

 

It was the drivers license/vehicle registration that had me concerned, but we've worked out the arrival date with the employer, to make it less than a full 7 months.

 

Thanks to all,

 

Butch

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Thanks for all of the information, I'm still open and looking for any and all information & suggestions.

I have done a lot of research on this issue and if nothing has changed, AZ is one of the states which have laws that apply to work-campers but which the state chooses not to enforce on them because they are such a significant economic factor. There are so many RV related businesses that are depending upon seasonal RV workers to keep the doors open that there is very little effort to enforce the laws about vehicle registrations or driver's licenses with them. If you contact the officials, they talk as though the laws were uniformly applied to all seasonal workers but that is not true. AZ is well known in the construction trades for being very aggressive with them over those two issues, but on rarely hears of that happening to a work-camper. So it really comes down to your comfort level. It is not likely that any enforcement officer will bother you, but the law says that he can if he should wish to do so. :huh:

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Thanks Kirk, the General Manager told us, that thru all the years, they've never run into a problem.

 

The current people, have been working there for 7 years, they're from out of state and have had no problems either.

 

The reason the position is open, he's 73 and wants to "retire again", for good this time. But they will be coming back to the park, again next year. To train and assist, on a more limited basis.

 

Thanks again for all of the input,

 

Butch

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We worked in Montana and had to file a Montana tax return, but this did not affect my disability or retirement incomes as we were only temporary residents. We were paid w2 for 600 a month. Everything we paid in was refunded back to us.

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