Is it possible to claim residency in a state like Alaska or Texas (where there is no state income tax) in a legal way even if you technically live in another state with high taxes? What are the requirements for claiming residency and are there any loopholes to exploit?
I seriously doubt it is possible to legally do this. Even it it was, it would probably be so difficult after a year you’d decide it wasn’t worth your time.
Google is your friend!
http://touchngo.com/lglcntr/akstats/AAC/Title15/Chapter023/Section143.htm
15 AAC 23.143. Establishing and Maintaining Alaska Residency
(a) An individual’s intent to establish residency, remain indefinitely in Alaska, or to return to Alaska and remain indefinitely is
demonstrated through the establishment and maintenance of customary ties indicative of Alaska residency and the absence of
those ties elsewhere. Acts that are required by law or contract or are routinely performed by temporary residents of Alaska are
not by themselves evidence of residency. In evaluating whether an individual claiming Alaska residency has demonstrated an
intent to remain indefinitely in Alaska, the department will consider whether or not an individual has:
(1) taken steps to establish Alaska residency and sever a previous state residency;
(2) ties to another state which indicate continued residency in the other state; and
(3) taken other action during or subsequent to the qualifying year that is inconsistent with an intent to remain in Alaska
indefinitely.
(b) An individual may not become a resident while absent from Alaska.
© Physical presence in Alaska is not, by itself, sufficient to establish residency. Before January 1 of the qualifying year, an
individual must have taken at least one step beyond physical presence in Alaska to establish residency. The department will not
consider external indicators, including those listed in 15 AAC 23.173(g) , established less than six months before December 31
of the qualifying year as evidence of the establishment of Alaska residency in time to qualify for the current year dividend.
And in Missouri (probably some other states as well) you’re responsible for paying the state income tax in the state where you earned your money, and then deducting it on your return in the state where you reside.
And in case you still don’t know how to search,
http://www.utexas.edu/student/giac/residency.html#Anchor-49575
Q. How do I establish residency?
A. One must be an independent (not claimed as a dependent for income tax purposes), US citizen or permanent
resident, (have a green card, also known as card I551 or the evidence of I551 stamp in the passport) or international
student who is eligible to establish a domicile in Texas and live in the state of Texas for 12 consecutive months without
attending an institution of higher education and be gainfully employed.
Seems to me your best bet is to leave whatever hellhole of a state is trying to stick it to you and actually MOVE to Texas. It worked great for me…
Ooops, I apologize for the Texas info – that one doesn’t have anything to do with residency as it applies to state income tax. Very sloppy searching on my part.
I am not positive, but after Alex Rodriguez signed with the Texas Rangers, I think I remember hearing that his pay would be taxed for the team’s away games in states with income tax. Rodriguez’s salary for the Rangers’ 81 home games would not be taxed.
So if you work outside of Texas, even if you’re a resident of The Lone Star State, you’ll probably have to pay income tax on the income you receive where ever you’re working.
Join the military!
I did (not for tax reasons, tho), and claimed my home state of New Jersey on my finance forms. New Jersey doesn’t excise state income tax if you are active duty serving outside of the state. My paychecks are larger because of it. 
Tripler
God bless America.
To continue the uncited info, I am pretty sure that many states with professional sports teams passed specific laws taxing out of state atheletes at a special rate. IIRC, one state began this practice and all the others followed suit when they realized it could be a decent money maker.
Sorry, zedan, but odds are, just changing residency won’t help.
IAAL; this OPINION is not legal advice; this OPINION is not an offer or acceptance of legal representation; YMMV, don’t try this at home…
For instance, in California, if you make any money in the state, you must file as a non-resident, but you still pay the tax.
The only way to get around state taxes is to make all of you rmoney for the year in a state that has no income tax.