We are moving to Tx this summer.
I want to make sure that we don't have to pay any taxes once we are there.
Especially on sign on bonuses and relocation compensation.

I want to be sure we meet the legal requirements of Tx citizenship so I can tell RI to stuff it.

I know there may be requirements for exiting RI too.
For example, they may say your a year long resident if you are here in RI for a total of 180 days or more regardless of when or if you move.

They do this to compell the collage students to legally become residents in a compulsory manner. Then they make them pay taxes on their out of state cars and so on.

So what do I need to do?

Get a Texas drivers license. You can do that day 1 you are in the state. That being said...you'll need to have an address in Texas to get one of those.


ETA: I think you need to find out what RI requires to show you are no longer a resident of that state. Texas may require one thing but RI may not accept it. Example, Texas only requires you to live here for a period of 30 days and have bills in your name going to an in state address(the 30 days is waived if you get a TXDL). However, RI may not accept those bills as "residency" in Texas. They may require you to have a TXDL and have surrendered your RIDL to a Texas DPS office.

My accountant said we just stop paying to RI once we are in Tx.

Just be sure to establish residency as proof.

I know about turning in our licenses and our RI car plates.

My cousin didn't turn in her plates and the town continued to charge them the property tax on the car even though they had been Tx residents for more than a year.

It was into 4 figures and the town said "Fuck You Pay Me".

RI has some funny rules about residency so they can get the snow bunnies and collage students to pay up.

For example. Different tax but similar premise. If I leave RI to work and then sell my home they can tax me at the closing 6% as an exit/non-resident tax.

Just watching my step with these libs.

This has little to do with Texas, and mostly to do with what RI says a resident is.

1) The 180 day rule is common. So try to get here well before that.

2) Stop earning money in RI.

3) Cut all ties to RI, (DL, LTC, Car Registration, banks, Voter ID, etc).

4) Get kids enrolled in Texas schools ASAP.

5) Start earning money in Texas.

This is how I want to operate this. Looks like the old lady will be there in June working.

OK i do consulting all over the country.     So some times I get stuck paying income tax for the state I'm working in.      


If you work part of the year in RI and part of the year in TX.    You will have to pay RI their income tax on the money you made in RI.    Your money you make in TX is NOT taxed by RI.

However RI had three tax brackets, 3.75, 4.75, and 5.99% based on your TOTAL federal adjusted income.    

So lets say you are married and made 35K in RI and 35K in TX.    after deductions and what not your federal adjusted income was 65K.      That would put you in the 4.75% tax bracket even thought you only made 35K in RI.     The good news is that 4.75% tax would only apply to the amount you earned in RI not the total amount.

Hope that helps.

And I thought the Romneycare exit free was bad when I escaped Taxachusetts.

You have to file MA taxes since you were in MA for part of the year, and you need form MA-1099-HC to prove you had insurance, but your insurance company isn't required to give you a MA-1099-HC since you're no longer a Massachusetts resident...

Romney needs to go sit on a pineapple and rotate.

This shit is a problem because people are too scared to tell tax authorities to fuck off.

California Franchise Tax Board tried coming after me twice, once in 2003 and again in 2011.  In 2003 they wanted me to "prove" I was a Texas resident. In 2011 they wanted me to give them information on how much business I did in CA in 2010 to see if they could justify taxing me as if I were a CA corporation (I sold 7 digits of equipment into the state).  Both times I told the CFTB that I'd see them in federal court. Both times they dropped it.

We may hate how it's used, but this is why the Constitution includes and interstate commerce clause.  The states have no right, at all, to tax residents of other states. Period.

Establishing TX residency was explained above.  Do that BEFORE you accept compensation (bonus, etc.) and have that compensation delivered to you in TX (e.g. direct deposited into an account that lists your TX address) and no other state can touch it. Ever.

That last part is flat out wrong.

If you do work in state X, or spend money in state X, then state X absolutely can charge you income or sales tax on that money. Same applies to property taxes...Etc..

DPS has made it harder to get a TXDL.  My wife just got a letter from them about renewing her DL.  Blame it on identity theft and illegals.  You might want to look into this further.  

One of the things you have to prove is you are a citizen.  So you're going to need either a S.S. card or passport.

No it was not DPS, it was Congress.

How is this harder? Every grown adult should have their social security card and birth certificate available at a days notice. Also, I'd say more adults I know have their passport than not. If you mean harder, as in....she'll have to go into the DPS office this go round to renew rather than via mail or internet. Then yes, that is harder. We're talking about an out of state individual moving to Texas and establishing residency. Anyone getting a TXDL for the first time will have to go into a DPS office.

The DPS website clearly and concisely lays out what EXACTLY you need to do procure a TXDL, after moving from another state. 99% of the issues that arise are self inflicted due to lack of documentation. Oh...you thought we didn't really need that copy of your (insert x document here)? Yeah, come back when you have all your shit.

Change your address through payroll to Texas, from then on you're paying TX state tax (aka nothing).  You will be accountable for RI tax on anything prior to that.  Technically speaking, you must be working in Texas at that point, so make sure you have a residence in TX (i.e., purchased home or lease) at that point and start moving all your stuff over.  When you file taxes the next year you'll have to file in RI for anything up to the point you moved.  Sounds like you have an accountant so he can figure that out for you, it's not even hard doing it yourself.

I've lived in 5 different states, there's not much to it.  If RI dings you for car registration, property tax, whatever, you'll be responsible for that as long as you have the asset located there... getting Texas plates requires inspection, so that's a defacto point in time to tell RI to fuck off for auto taxes.

When I left CT for Texas last year, I received two W2s, one for the income while living in CT, one for Texas. Just tell payroll and be done with it.

Go to the Peoples Republic of Rhode Island Embassy.

Stand just outside the gate and tell them you have renounced your Rhode Island Citizenship because you have Defected to the great freedom of Texas...

Fling your Cut up Rhode Island Drivers license and other "State Documents" and over their wall...

Live Happy in Texas!