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Maintaining residency in one state, while completing residency in another

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  • Maintaining residency in one state, while completing residency in another

    I have a question. Just matched orthopaedics in Ohio. My home state is NC. My wife and I want to keep our permanent residence in NC due to low vehicle property taxes, don't want to change our driver's licenses, decently low income taxes, etc. How can we (on paper for tax purposes) live in NC while doing residency in OH? Any help would be appreciated.

  • #2
    You’ll have to look up NC rules about being a temporary out of state resident. I was able to register my car in UT while living in CA as a med student for a year or two. I’m not sure you can claim being a temporary resident for 5-6 years.

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    • #3
      Are you going to maintain a home in NC?

      Regardless, you might just want to get rid of this notion and come to terms with being an Ohio resident for the next 5+ years.

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      • #4
        It will be a very long daily commute. Or you can commit fraud. Your choice.

        If the car is owned by someone in North Carolina, like your parents, I can see having the car registered in NC. However, your insurer will need to know where the car is garaged.

        Ohio taxes will be deducted from your paycheck, and your local address will be provided to the state taxing authority. If it were that easy to avoid state income taxes, wouldn't EVERYONE say that they lived in Texas or Florida?

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        • #5
          I think you'd probably spend more time/money just trying to pull this off.

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          • #6
            from my quick google search, NC has a flat tax of 5.25% on all your income. Ohio has a progressive income tax where the top bracket is 4.8%. Quick math then tells me that at least on income taxes, you're paying more in NC than OH

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            • #7
              Trick question really.
              Residency is legally an education program. You can have a legal residence in NC. Driver’s license, car ownership, voting are no problem. As long as you actually have an address with a legit claim.

              However, as mentioned when it comes to money it is not so easy. Insurance and taxes don’t follow legal residence. It’s where you are.

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              • #8
                Tax burden on a resident salary in Ohio are peanuts compared to your future tax burden in any state as an attending. You should spend your time finding ways to lower the taxes you’ll owe through your career as an orthopedic surgeon. NC won’t seem so tax friendly when you’re making 500K+.

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                • #9
                  Originally posted by raisehailpraisedale View Post
                  I have a question. Just matched orthopaedics in Ohio. My home state is NC. My wife and I want to keep our permanent residence in NC due to low vehicle property taxes, don't want to change our driver's licenses, decently low income taxes, etc. How can we (on paper for tax purposes) live in NC while doing residency in OH? Any help would be appreciated.
                  Your paycheck will have taxes deducted from it, including OH taxes. It will clearly be shown you live >183 days in that state. There is no way to show that you qualify as a resident of NC. And if you get caught in a tax fraud, it can be criminal or civil and affect your future ability to get hospital privileges and licenses.

                  One accident where you are at fault and your insurer will disown you and not pay on your behalf because you claimed to be in NC. Any suit for injuries can affect your future income as wages can be garnished.

                  Don't be short sighted and try to be too smart for your own good. Just become an Ohio resident and do all the paperwork.
                  Last edited by Kamban; 03-15-2022, 10:58 AM.

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                  • #10
                    Regarding car insurance:
                    You can title and own your car in NC.
                    But you will need to disclose that.
                    Result is you will need a policy issued by an agent licensed in Ohio. Insurance is state licensed and based on the location of the car.
                    As a “student” registration and DL are not required.

                    Any potential savings is actually sales tax. Bringing an out of state vehicle can require sales tax.

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                    • #11
                      Originally posted by Tim View Post
                      Trick question really.
                      Residency is legally an education program. You can have a legal residence in NC. Driver’s license, car ownership, voting are no problem. As long as you actually have an address with a legit claim.

                      However, as mentioned when it comes to money it is not so easy. Insurance and taxes don’t follow legal residence. It’s where you are.
                      We would surely have a legitimate address in NC. Thank you for your input. My family growing up was Military and we always kept or residence in NC, no matter where we moved. Not trying to bend any rules here, just wanted to know what my options were.

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                      • #12
                        Originally posted by Kamban View Post

                        Your paycheck will have taxes deducted from it, including OH taxes. It will clearly be shown you live >183 days in that state. There is no way to show that you qualify as a resident of NC. And if you get caught in a tax fraud, it can be criminal or civil and affect your future ability to get hospital privileges and licenses.

                        One accident where you are at fault and your insurer will disown you and not pay on your behalf because you claimed to be in NC. Any suit for inures can affect your future income as wages can be garnished.

                        Don't be short sighted and try to be too smart for your own good. Just become an Ohio resident and do all the paperwork.
                        Not trying to bend/break any rules here. I am a military kid and we always kept our permanent residence in NC. The only reason I brought up the question was to see what my options were, if there was something out there for medical education. I appreciate your reply.

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                        • #13
                          New Ohio Residents
                          Welcome to Ohio! You are considered an Ohio resident once you
                          • take a job,
                          • sign a lease,
                          • buy a home, or
                          • enroll children in school
                          Within 30 days of establishing residency, you will need an Ohio driver license for yourself, and an Ohio title and license plates for your vehicle.
                          https://www.bmv.ohio.gov/new-to-ohio.aspx

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                          • #14
                            Originally posted by raisehailpraisedale View Post

                            We would surely have a legitimate address in NC. Thank you for your input. My family growing up was Military and we always kept or residence in NC, no matter where we moved. Not trying to bend any rules here, just wanted to know what my options were.
                            When you are active duty in the military the rules are a bit different. But as a civilian you must change your residence when you move.

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                            • #15
                              When I was a resident, one of my co-residents tried to do this -- maintain residency, pay taxes, keep his car registration/insurance, etc. in Kentucky while doing residency in Michigan. The IRS got involved. It did not go well for him. Do not do this.

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