Mail Forward/Address in Michigan

flyfishing48 wrote:
So keeping our Michigan residents status is important for state income tax breaks.

Why don't you move your residence to a state with NO income tax? When quit full timing, you can "move" back to Michigan. Florida, South Dakota and Texas are very popular with full timers. When I full timed, I "moved" from Georgia to South Dakota and saved a ton in income tax for many years.

We also were MI residents, rented out our house and wanted to retain our residency as long as we did own property. We used a mail forwarding service in FL and changed our "mailing" address on everything to that address. We then requested to have mail sent to us when we stopped somewhere for a week or so. We used our daughter's MI address as our residence address on everything including our taxes. Since we were reporting rental income for the house, we couldn't continue to use that. Isn't there someone in MI that you know that would let you use their address as your residence and then just sign up for mail service only with one of the companies that provide these services to full-timers? Fl, S Dakota and TX are the most popular. Just because you use the mail services does not make you a resident of that state. Keep your banking, drivers licenses, insurance etc in MI, just change the address to the MI address an acquaintance allows you to use.

DownTheAvenue wrote:

flyfishing48 wrote:
So keeping our Michigan residents status is important for state income tax breaks.

Why don't you move your residence to a state with NO income tax? When quit full timing, you can "move" back to Michigan. Florida, South Dakota and Texas are very popular with full timers. When I full timed, I "moved" from Georgia to South Dakota and saved a ton in income tax for many years.

When MI changed their income tax laws we were grandfathered in to a discount. If we move out of the state and move back we would lose the discount. So while a no tax state would be great, it might only be short term.

flyfishing48 wrote:

DownTheAvenue wrote:

flyfishing48 wrote:
So keeping our Michigan residents status is important for state income tax breaks.

Why don't you move your residence to a state with NO income tax? When quit full timing, you can "move" back to Michigan. Florida, South Dakota and Texas are very popular with full timers. When I full timed, I "moved" from Georgia to South Dakota and saved a ton in income tax for many years.

When MI changed their income tax laws we were grandfathered in to a discount. If we move out of the state and move back we would lose the discount. So while a no tax state would be great, it might only be short term.

I understand, and thanks for the explanation. Now the question becomes solely based on math. How much is that discount? How much would you save using that discount over so many years verses how you will save by paying NO tax?

Two questions as part of the equation that have to be considered but impossible to answer are how long will that discount be in place before the politicians remove it so they have more money to spend? After full timing, how long will you live to take advantage of that discount?

Good luck!