When to declare MT residency in transition from owning a home in another state and in MT?

[AlaskaHunter]

We currently own our house in Alaska with intent on selling it this summer.
We purchased a home in MT 1-Nov-2023.
We are registered to vote in AK, AK driver's licenses, AK resident hunting license.
We paid for non-resident MT hunting license in 2023.

We have 2 vehicles registered in AK, 1 vehicle registered in MT.
We pay property taxes for our houses in MT and AK.

We will live in MT Oct 2023-June2024, Alaska June2024-Sept2024 to sell the AK house,
the permanently back to MT.

When do we declare MT residency?
Some of what I found online is we need to live 180 days in MT to declare residency,
yet need to get MT driver's license after 60 days of living in MT.
Thanks.

 

[Threedognight]

You answered your own question.

 

[TheTone]

My opinion is that when everything in your name is tied to MT that’s when your residence begins. Paying property tax doesn’t matter but a homeowner exemption does

 

[OverlordBear]

We currently own our house in Alaska with intent on selling it this summer.
We purchased a home in MT 1-Nov-2023.
We are registered to vote in AK, AK driver's licenses, AK resident hunting license.
We paid for non-resident MT hunting license in 2023.

We have 2 vehicles registered in AK, 1 vehicle registered in MT.
We pay property taxes for our houses in MT and AK.

We will live in MT Oct 2023-June2024, Alaska June2024-Sept2024 to sell the AK house,
the permanently back to MT.

When do we declare MT residency?
Some of what I found online is we need to live 180 days in MT to declare residency,
yet need to get MT driver's license after 60 days of living in MT.
Thanks.

For hunting purposes it is most likely one whole calendar year of residency in MT. It was that way for Colorado and 6 months for Idaho. When I did my moves.

 

[Threedognight]

To purchase a resident hunting or fishing license you must live in state for 6 months.

 

[Islander]

Residency requirements are fully defined in Montana Code Annotated 87-2-102


Residency Requirements
To be a lawful Montana resident and eligible to purchase any Montana resident fishing, hunting, and trapping licenses, you must,

have been physically living in Montana for at least 180 consecutive days immediately prior to purchasing a resident license;

register your vehicle(s) in Montana;

be registered to vote in Montana if you’re registered to vote at all;

not possess (or have applied for any) current resident hunting, fishing, or trapping privileges in another state or country;

file Montana state income tax returns as a resident, if you are required to file.

Once you have established your residency, you must continue to meet all these requirements and physically reside in Montana as your principal or primary place of abode for not less than 120 days per year (days need not be consecutive).

 

[Islander]

Residency requirements are fully defined in Montana Code Annotated 87-2-102


Residency Requirements
To be a lawful Montana resident and eligible to purchase any Montana resident fishing, hunting, and trapping licenses, you must,

have been physically living in Montana for at least 180 consecutive days immediately prior to purchasing a resident license;

register your vehicle(s) in Montana;

be registered to vote in Montana if you’re registered to vote at all;

not possess (or have applied for any) current resident hunting, fishing, or trapping privileges in another state or country;

file Montana state income tax returns as a resident, if you are required to file.

Once you have established your residency, you must continue to meet all these requirements and physically reside in Montana as your principal or primary place of abode for not less than 120 days per year (days need not be consecutive).

Sadly they are happy to let you pay taxes as soon as you live there for one day.

 

[ismith]

We currently own our house in Alaska with intent on selling it this summer.
We purchased a home in MT 1-Nov-2023.
We are registered to vote in AK, AK driver's licenses, AK resident hunting license.
We paid for non-resident MT hunting license in 2023.

We have 2 vehicles registered in AK, 1 vehicle registered in MT.
We pay property taxes for our houses in MT and AK.

We will live in MT Oct 2023-June2024, Alaska June2024-Sept2024 to sell the AK house,
the permanently back to MT.

When do we declare MT residency?
Some of what I found online is we need to live 180 days in MT to declare residency,
yet need to get MT driver's license after 60 days of living in MT.
Thanks.

Hope you’re bringing a supercub with you, you’ll need it.

 

[AlaskaHunter]

Residency requirements are fully defined in Montana Code Annotated 87-2-102


Residency Requirements
To be a lawful Montana resident and eligible to purchase any Montana resident fishing, hunting, and trapping licenses, you must,

have been physically living in Montana for at least 180 consecutive days immediately prior to purchasing a resident license;

register your vehicle(s) in Montana;

be registered to vote in Montana if you’re registered to vote at all;

not possess (or have applied for any) current resident hunting, fishing, or trapping privileges in another state or country;

file Montana state income tax returns as a resident, if you are required to file.

Once you have established your residency, you must continue to meet all these requirements and physically reside in Montana as your principal or primary place of abode for not less than 120 days per year (days need not be consecutive).

That is for hunting/fishing license. My question is declaring residency for state income tax purposes.
As an Alaska resident who has an Alaskan driver's license, Alaskan hunting/fishing license, Alaskan home, registered to vote in AK, etc.
when do I declare Montana residency for the purpose of MT state income taxes?
180 days after living in our new MT home?
or on the closing date of our new MT home?
or 60 days after purchasing the MT home when I am required by law to get a MT drivers license?
or when I sell my Alaskan home this summer?

 

[MtnElk]

If I’m reading your original dates correctly, then effective 1/1/24 I would switch everything to MT, and that three month blip July to September can be claimed as vacation and no need to dual declare.

Sane reason I wouldn’t declare in MT fkr Oct 23-dec23. Keep it clean.

Cars, drivers licenses etc don’t affect income tax. I lived in Minnesota for 7 years on an Illinois DL

 

[Dakotakid]

Try Rule 42.15.109 - RESIDENCY

Rule 42.15.109 - RESIDENCY, Mont. Admin. R. 42.15.109 | Casetext Search + Citator

Read Rule 42.15.109 - RESIDENCY, Mont. Admin. R. 42.15.109, see flags on bad law, and search Casetext’s comprehensive legal database

casetext.com

 

[AlaskaHunter]

Try Rule 42.15.109 - RESIDENCY

Rule 42.15.109 - RESIDENCY, Mont. Admin. R. 42.15.109 | Casetext Search + Citator

Read Rule 42.15.109 - RESIDENCY, Mont. Admin. R. 42.15.109, see flags on bad law, and search Casetext’s comprehensive legal database

casetext.com

Thanks. From that document:
No one factor will automatically determine residency and the order of appearance in the list below does not indicate a level of importance. Residency does not depend upon any one fact or combination of circumstances, but upon the whole, taken together, and the weight to be given to the various facts and circumstances indicative or presumptive of residency depends upon the unique evidence in each case. Factors that may be considered to determine a residency include, but are not limited to:
(a) an individual's residency status for tax purposes in prior years; AK
(b) where an individual votes or is registered to vote (although casting an illegal vote does not establish residency for income tax purposes); AK
(c) where an individual holds a valid driver's license; AK
(d) an individual's residency status evidenced by hunting or fishing licenses; AK
(e) whether a homestead declaration has been filed on a residential dwelling owned by the taxpayer; AK
(f) residency status of the individual's spouse and minor children; AK
(g) whether an individual claimed residency when applying for admission or financial aid at an educational institution;NONE
(h) where important and valuable possessions and documents are kept; AK
(i) primary address used for important mail; AK AND MT
(j) jurisdiction from which any professional licenses were issued; NONE
(k) location of the place of worship where an individual is a member; NONE
(l) location of any social, fraternal, athletic organizations, clubs, or lodges in which the individual is a member; AK AND MT
(m) location of the individual bank accounts or any other transactions the individual conducts with financial institutions; AK AND MT
location where the individual obtains professional services including, but not limited to, lawyers, accountants, dentists, primary care physicians, or other doctors; AK AND MT
(o) oral or written declarations of residency evidenced by documents including, but not limited to:
(i) tax returns; AK
(ii) wills; AK
(iii) automotive insurance; AK
(iv) deeds; AK AND MT
(v) other insurance policies;
(vi) mortgages; MT (AK house paid off years ago)
(vii) leases; and MT winter rental
(viii) contracts;
(p) location where an individual primarily exercises the individual's civil and political rights; VOTE AK
(q) location of an individual's business(es), profession(s), or occupation(s); NONE RETIRED

The burden of proving that residency has been established outside of Montana generally falls on the individual. The burden of proving that residency has been established in Montana generally falls on the department.
Mont. Admin. R. 42.15.109

 

[AvidIndoorsman]

I work remote so not entirely different from your (assuming) retired situation in that when we move I don't have a "first day at a new job" in a new state which is when I think you would typically mark it. Because of that I just pick a day that makes sense for tax purpose. Jan 1, July 1, etc. make it easy for yourself.

If I were you I'd call it Jan 1, 2024.

 

[SAJ-99]

Thanks. From that document:
No one factor will automatically determine residency and the order of appearance in the list below does not indicate a level of importance. Residency does not depend upon any one fact or combination of circumstances, but upon the whole, taken together, and the weight to be given to the various facts and circumstances indicative or presumptive of residency depends upon the unique evidence in each case. Factors that may be considered to determine a residency include, but are not limited to:
(a) an individual's residency status for tax purposes in prior years; AK
(b) where an individual votes or is registered to vote (although casting an illegal vote does not establish residency for income tax purposes); AK
(c) where an individual holds a valid driver's license; AK
(d) an individual's residency status evidenced by hunting or fishing licenses; AK
(e) whether a homestead declaration has been filed on a residential dwelling owned by the taxpayer; AK
(f) residency status of the individual's spouse and minor children; AK
(g) whether an individual claimed residency when applying for admission or financial aid at an educational institution;NONE
(h) where important and valuable possessions and documents are kept; AK
(i) primary address used for important mail; AK AND MT
(j) jurisdiction from which any professional licenses were issued; NONE
(k) location of the place of worship where an individual is a member; NONE
(l) location of any social, fraternal, athletic organizations, clubs, or lodges in which the individual is a member; AK AND MT
(m) location of the individual bank accounts or any other transactions the individual conducts with financial institutions; AK AND MT
location where the individual obtains professional services including, but not limited to, lawyers, accountants, dentists, primary care physicians, or other doctors; AK AND MT
(o) oral or written declarations of residency evidenced by documents including, but not limited to:
(i) tax returns; AK
(ii) wills; AK
(iii) automotive insurance; AK
(iv) deeds; AK AND MT
(v) other insurance policies;
(vi) mortgages; MT (AK house paid off years ago)
(vii) leases; and MT winter rental
(viii) contracts;
(p) location where an individual primarily exercises the individual's civil and political rights; VOTE AK
(q) location of an individual's business(es), profession(s), or occupation(s); NONE RETIRED

The burden of proving that residency has been established outside of Montana generally falls on the individual. The burden of proving that residency has been established in Montana generally falls on the department.
Mont. Admin. R. 42.15.109

I always found this to be one of the most complicated questions to answer. To the point of the doc, you never really "declare" unless you need to. If you are getting a pension check or SS or some other income, you declare to the org sending the check that you moved. Once you change your address with them, the org reports the information to the appropriate agencies (state and fed). They may have a date different than when you thought you declared.

Year ago, When i traveled a lot for work, most states had rules that if you work more than x days (like 20 was NY I think) in the state you have to file a state tax return even if you were a NR. Now I think it is if you earn more than the standard deduction. A lot of times people would just ignore the whole process because it is such a pain to keep track, but the rules get changed all the time because every state wants their cut.

Hunting License is totally different because the draw may be in April and you have to be there six months to get in the R pool.

 

[Mountain Man]

Another vote for 1 JAN 2024. The burden would be on the state to prove otherwise and unless you are earning income from MT sources, then there is no way for them to know. Don’t make it harder on yourself than you need to.

 

[AlaskaHunter]

I always found this to be one of the most complicated questions to answer. To the point of the doc, you never really "declare" unless you need to. If you are getting a pension check or SS or some other income, you declare to the org sending the check that you moved. Once you change your address with them, the org reports the information to the appropriate agencies (state and fed). They may have a date different than when you thought you declared.

Year ago, When i traveled a lot for work, most states had rules that if you work more than x days (like 20 was NY I think) in the state you have to file a state tax return even if you were a NR. Now I think it is if you earn more than the standard deduction. A lot of times people would just ignore the whole process because it is such a pain to keep track, but the rules get changed all the time because every state wants their cut.

Hunting License is totally different because the draw may be in April and you have to be there six months to get in the R pool.

Yes through 2024 my 401-K, social security will be deposited in an Alaska Credit Union.
And our federal tax paperwork will be our Alaska address.
Since we are retired, no earned income specific to the state of Montana.

The plan is to declare MT residency in Jan 2024...MT drivers license, MT voter registration, etc.
since it is likely we will spend 9 months in MT, 3 months in AK in 2024.

 

[SAJ-99]

Yes through 2024 my 401-K, social security will be deposited in an Alaska Credit Union.
And our federal tax paperwork will be our Alaska address.
Since we are retired, no earned income specific to the state of Montana.

The plan is to declare MT residency in Jan 2024...MT drivers license, MT voter registration, etc.
since it is likely we will spend 9 months in MT, 3 months in AK in 2024.

How to fool the system should be its own thread. I'm not sure how that works exactly. Seems like with mobile banking, anyone could set up "residency" in zero tax state if the only requirement was to get SS deposits in your account there. I would guess the IRS has figured that one out.

 

[AlaskaHunter]

Looks like 60 days is the magic number for vehicles:
https://leg.mt.gov/bills/mca/title_0610/chapter_0030/part_0030/section_0020/0610-0030-0030-0020.html
A person who has resided in Montana for more than 60 consecutive days is considered to be a resident for the purpose of vehicle titling and registration .

 

[TheTone]

Yes through 2024 my 401-K, social security will be deposited in an Alaska Credit Union.
And our federal tax paperwork will be our Alaska address.
Since we are retired, no earned income specific to the state of Montana.

The plan is to declare MT residency in Jan 2024...MT drivers license, MT voter registration, etc.
since it is likely we will spend 9 months in MT, 3 months in AK in 2024.

I think having Alaska as your residence on your federal taxes through 2024 will be setting yourself up for failure potentially with MT fwp

 

[westbranch]

Yes through 2024 my 401-K, social security will be deposited in an Alaska Credit Union.
And our federal tax paperwork will be our Alaska address.
Since we are retired, no earned income specific to the state of Montana.

The plan is to declare MT residency in Jan 2024...MT drivers license, MT voter registration, etc.
since it is likely we will spend 9 months in MT, 3 months in AK in 2024.

If you declare MT residency Jan 24 your income will be taxable in MT even if your address is still AK. Once you're a resident of a state virtually every state taxes your "worldwide income". Does matter where the bank accounts are. Whether they find out about it is a different matter. Most states have information sharing between departments where things get matched up eventually.