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I have a Soldier who wants to change either their home of record or legal residence for tax purposes. She took the oath of enlistment in NM but is stationed in TX. Big tax differences.
Posted in these groups: 
Taxes
Military Entrance Processing Station (MEPS)
Taxes Military Entrance Processing Station (MEPS)
Posted >1 y ago
Responses: 10
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Home of record is a bit more complicated and difficult. Legal residence is an easy switch. They have the form at S1
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SFC (Join to see)
Good answer, but I have not found a single S1 shop that can process it or change it. Most S1 shops say go see retention, or legal....
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SFC (Join to see)
SFC (Join to see) that's a terrible S1 shop then. We at retention can't change that. My S1 has the form sitting right there for everyone.
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I would recommend that your Soldier check all benefits associated with Legal Residence. There are far more benefits state to state than simply tax breaks. Simply googled state benefits for Active Duty and Veterans. She might be surprised. Thank you for your service.
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You probably be surprised at the number of Soldiers who enlisted in states that tax military pay (HOR), even when not residing in their HOR state, who changed their HOR to TX for the sole purpose of not paying state income tax.
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SFC Ralph E Kelley
SFC (Join to see) - Maybe - but I owned 'Homes' in 4 different states that were considered as legal residency by those states. Using the Kentucky Home of Record as noted in my 201 field file kept me from paying state income (not to be confused with properety tax) taxes in 3 of them.
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SFC (Join to see)
SFC Ralph E Kelley yes that is not what im referring to we are talking about the ERB and Home of record not residence
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1SG (Join to see)
Had my HOR (state I entered service from) taxed my military income I would likely have changed my HOR to TX. That's what I understood folks to do during my period.
What's the risk (based on regulations as I understood them during my period of service)?
Shipment of HHG and transportation costs paid to your HOR upon separation.
Were I to have found myself stationed in TX when I separated, I would have had to pay the difference to ship my HHG and family to WV (not certain if waiver would have been available). I haven't researched to see if there is a restriction on how many times you can change it, but that's the only risk I see.
With regard to state bonuses, WV's Veterans Bonus ($600) required that I "must have been 'bona fide' resident(s) of the state at the time of and at least six months prior to the time I (they) entered into active duty."
By the way, some folks may have state bonuses out there that they aren't aware of. May be worth the Google search.
Whether changing state of residence to impact collection of state income tax (or not) is possible without changing HOR, I defer to the current SMEs on here.
What's the risk (based on regulations as I understood them during my period of service)?
Shipment of HHG and transportation costs paid to your HOR upon separation.
Were I to have found myself stationed in TX when I separated, I would have had to pay the difference to ship my HHG and family to WV (not certain if waiver would have been available). I haven't researched to see if there is a restriction on how many times you can change it, but that's the only risk I see.
With regard to state bonuses, WV's Veterans Bonus ($600) required that I "must have been 'bona fide' resident(s) of the state at the time of and at least six months prior to the time I (they) entered into active duty."
By the way, some folks may have state bonuses out there that they aren't aware of. May be worth the Google search.
Whether changing state of residence to impact collection of state income tax (or not) is possible without changing HOR, I defer to the current SMEs on here.
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