SCRA Residence & Home of Record Current as of 5 FEB 10

SCRA Residency Briefing Outline Background Some Key Definitions Domicile Tax and Voting Issues

SCRA Definitions

SCRA Definitions Home of Record: Your home of record is the state from which you entered the military. Residence: Your residence it the pleace where you presently live. You are currently a resident of Germany. However, unless you intend to remain in Germany and make it your permanent home, it is not your domicile.

SCRA Definitions Domicile: Your domicile is your permanent residence. It is the place to which, even if you were temporarily absent, you intend to return.

SCRA DOMICILE

SCRA Domicile This could be your home of record, but is not necessarily so. Once you establish a domicile, that place will remain your domicile until you move to a different location with the intent of making that location the permanent residence. You may have many residences but only one domicile. A spouse does not automatically acquire the residence of the other spouse, although they are often the same.

SCRA Changing your Domicile Physical presence in the state where you want to become a legal resident. An intent to remain in the new state. –Register to vote and vote –Register and pay state income taxes –Register POV –State divers' license –The more contacts, the more likely you will be considered a domiciliary or permant resident.

SCRA Residence for Tax Purposes and Voting Rights

SCRA General Rule: A Servicemember neither acquires nor loses domicile based on the presence in a state due to military orders Residence for Tax Purposes

SCRA Military Income: Deemed earned in the state of domicile Personal Property: Deemed located in the state of domicile A Servicemember’s nonmilitary income is not protected by the SCRA Residence for Tax Purposes

SCRA Non-military spouse’s income not protected by SCRA  Taxable by host state  Taxable by state where income earned Spouse Tax Issues

SCRA A state cannot include Soldier’s income when calculating state income tax bracket for the non-military spouse Spouse Tax Issues

SCRA Voting Rights Home state (domicile) voter registration remains valid despite presence in another state due to military orders Be cautious about changing voter registration to the new (host) state.

SCRA Warning Regarding Domicile If Soldier loses “contacts” with state of domicile, the “new” state might pursue domicile status (and attempt to tax the Soldier!)

SCRA Conclusions State residency is an important and can be confusing issue Different states have different requirements on “in-state status,” but they all generally start with your domicile. Consult with a Legal Assistance Attorney for more detailed information regarding specific state law questions.

SCRA QUESTIONS?