A person’s state of residence is a lot more important than most people realize. It determines, for example: Liability for state income taxes, eligibility for “in-state” tuition rates, eligibility for voting in state and federal elections, and where wills are probated.
Legal residence can be particularly complicated when one is in the armed forces because of the transient lifestyle of service members. Where the military sends a service member for duty is not necessarily their “legal residence” or domicile. The duty is considered temporary, whereas ones legal residence is more permanent –where you plan to hang your hat at the end of your service in the military.
A person can change legal residence at almost any time; however, it is important to understand that legal residence is established, not chosen. One cannot simply choose a state that is particularly friendly to military income and decide it is their legal residence; rather, citizens must first meet three requirements. The three requirements to change your state of legal residence are: you must be physically present in the state, you must intend to remain indefinitely in the state; and you must intend to abandon your previous legal residence.
For example, if a soldier grew up in Maryland, but is stationed in Texas and finds that he or she likes Texas a lot more than Maryland, legal residence can be changed from Maryland to Texas. A soldier is in Texas because of being stationed there, so he or she meets the first requirement: “physical presence.”
In order to satisfy the second two requirements, a person can show intent to remain indefinitely in a state and likewise abandoning their previous residence by doing the following:
- Registering to vote and actually voting in the new state,
- Obtaining a driver’s license in the new state,
- Registering vehicles in the new state,
- Updating their most recent last will and testament to reflect the new state of legal residence,
- Purchasing property in the new state, and
- Notifying the former state’s relevant department of revenue that legal residence has been changed.
When changing a state of residence, a service member must complete DA Form 2058 and turn it into their personnel office. Pick up a copy of the form from your finance office. This form tells DFAS which state’s taxes to withhold from your paycheck. Filing this form alone, however, does not change state of legal residence. This form is filed to adjust state income tax withholding after a person has taken necessary steps to meet the requirements to change their state of residence.
One last thing: “legal residence” is not the same thing as home of record. Home of record is a military administrative term used to determine specific military entitlements (e.g., calculation of transportation costs when you get out of the Army). It is typically the state where a person joined the military, and can only be changed if it was done incorrectly at the time of enlistment.
Legal residence is a complex, but very important issue, especially for service members and their families. For those eligible to receive legal assistance services, please contact the Legal Assistance Office at 301-319-7828 or 301-295-6052 to schedule an appointment to discuss questions about state of residence, state taxes, or any other related matter.