Where Is My Residency?

Where Is My Residency

Thinking of selling the house, pulling up anchor, and sailing the globe this summer? Got a new job and relocating to a new state after you take that three-month tour throughout Europe that you’ve been planning since college? Taking advantage of the summer to move the kids to a new school system in the next state over? Don’t forget to consider the potential state income tax implications!

Even if you sell your home and leave the state, it’s important to note that many states have stringent regulations with regards to the perpetuation of residency. That being said, the sale of your home does not automatically change your residency status, even if you have every intention of moving out of state. Therefore, even after the sale of your home, you may still be a resident for state income tax purposes in the eyes of the jurisdiction that you plan on leaving.

An important key for many state residency issues may be the often overlooked “leave and land” concept. The act of uprooting oneself from one state is not enough to satisfy some state’s stringent regulations; the “leave and land” concept shows that a bona fide replacement domicile in another state or country is required for an individual to no longer be considered a resident of the former state, and therefore no longer subject to that state’s individual income tax. That being said, unless you plan on paying income tax to your former state, be sure to stick that landing!

For more information, or if you have any questions about this or any other tax matter, please contact your Wilkin & Guttenplan advisor or email us at This email address is being protected from spambots. You need JavaScript enabled to view it..

Mobile Workforce Bill – Simplifying State Income Taxes for Small Business Owners

Mobile Workforce Bill Simplifying State Income Taxes for Small Business Owners

On June 20th, 2017, the U.S. House of Representatives passed a bill that is intended to benefit U.S. small businesses by simplifying their state income tax reporting & withholding requirements. Currently, employers must comply with each state their employees work in, even if the work in that state is infrequent or temporary. Therefore, the compliance with each state’s laws is an arduous process that many businesses simply rely on their CPAs for assistance.

To provide some relief from the inconsistent state tax laws The Mobile Workforce State Income Tax Simplification Act of 2017 would create a de-minimis exemption for most employees. Those employees working in a state, outside the business domicile state, for less than 30 days during a calendar year would qualify for such exemption. But as always, there’s an exception to the rule. The de-minimis exemption will not apply to famous individuals such as professional athlete & entertainers.

This bill has passed in the House of Representative now the Senate must pass a companion bill in order for this legislation to carry on to the President for signature into law.

For more information, or if you have any questions about this or any other tax matter, please contact your Wilkin & Guttenplan advisor or email us at This email address is being protected from spambots. You need JavaScript enabled to view it..

Senate Health Care Bill Significantly Alters House Bill

Senate Health Care Bill Significantly Alters House Bill

The American Health Care Act of 2017 proposed and passed in the House has seen push-back in the form of the Senate’s version of the bill entitled, the Better Care Reconciliation Act of 2017. This bill contains significant departures from the House bill by retaining certain key laws found in Obama’s Patient Protection and Affordable Care Act (PPACA), such as the:

  • 3.8% net investment income tax
  • 0.9% Medicare surtax
  • Federal income tax deduction limitation of $500,000 for compensation paid by a health insurance provider

The Senate bill also introduces a premium tax credit for taxpayers purchasing a catastrophic plan which was once forbidden under the PPACA. Additionally, this bill further revises its HSA rules by excluding any high-deductible plan which provides coverage for abortions.

This bill has yet to be voted on by the Senate and should it pass it would need to be voted on once again by the House.

For more information, or if you have any questions about this or any other tax matter, please contact your Wilkin & Guttenplan advisor or email us at This email address is being protected from spambots. You need JavaScript enabled to view it..

Understanding Your Tax Obligation in the Sharing Economy

Understanding Your Tax Obligation in the Sharing Economy

Over the years we have seen the rise in shared economy services through ride-share programs & room rentals; sites such as Uber and Airbnb have disrupted the industry. While consumers and the willing participants that help fuel these sharing economies have taken advantage of these services there are tax pitfalls to proactively manage. Taxpayers may not understand that their participation as a service provider in these shared economy services binds them to a new set of tax rules.

What you need to know:

The list of all tax implications is exhaustive but two areas we believe to be at the forefront are: quarterly tax estimated payments and record keeping obligations. Due to the (hopeful) increase of income provided by participating in the shared economy taxpayers may be required to remit quarterly estimated tax payments generally due the 15th of April, June, September and January of the following year. Frequently, taxpayers neglect to pay quarterly estimates because they are unaware of such a requirement, but failure to do so may result in penalties and interest assessed in addition to ordinary tax.

Without accurate record keeping (although it may be burdensome) it will be difficult to analyze income for purposes of calculating the amount due with the quarterly estimated payments discussed earlier. Examples of responsible record-keeping include retaining all paystubs, 1099s, checks, and receipts for expenses incurred. Organizing this information in a format that clearly defines gross income and expenses to arrive at a net income or loss will prove greatly beneficial for purposes of calculating estimated taxes.

For more information, or if you have any questions about this or any other tax matter, please contact your Wilkin & Guttenplan advisor or email us at This email address is being protected from spambots. You need JavaScript enabled to view it..

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