I have always kept my South Dakota residency. My driver's license, car registration, and voter registration is always through them. I've never had an issue.
With the Residency Relief Act, from my understanding of it, it allows the spouse to pay state income taxes for whatever their state of residency is. For example, my state of residency is South Dakota so if I was working in, say Washington, I wouldn't have to pay Washington state income tax, I'd pay South Dakota state income tax (which they don't actually have).
Before the act was passed, DH was able to claim SD as his state of residency for tax purposes but I would have to claim the state we lived in for state income tax purposes.
My understanding is the MIlitary Spouse Residency Relief Act has remedied this. Dh and I also decided to establish TN residency back in 94(this was his first duty station and they also have no income tax). I have maintained my driver's license and voter registration there. For many years we continued to license our vehicles there, but as we have bought vehicles here in TX we have licensed them here. I have had to pay income tax on any income that I have earned in other states over the years (OK and KS). So the lady who did your taxes is probably right, but it didn't matter since you weren't earning income. However, it sounds like she isn't up to date on the new Act.. I also think the rules regarding licenses and registrations will vary from state to state. HTH.
I have always kept my South Dakota residency. My driver's license, car registration, and voter registration is always through them. I've never had an issue.
With the Residency Relief Act, from my understanding of it, it allows the spouse to pay state income taxes for whatever their state of residency is. For example, my state of residency is South Dakota so if I was working in, say Washington, I wouldn't have to pay Washington state income tax, I'd pay South Dakota state income tax (which they don't actually have).
Before the act was passed, DH was able to claim SD as his state of residency for tax purposes but I would have to claim the state we lived in for state income tax purposes.
I'm not sure if that makes sense and I'm sure
Cammie
Your tax preparer was wrong. Where did you get your taxes done?
I believe that up until the MSRRA was passed in 2009, you would have been legally obligated to change residency every time you moved.