Ethical question for the board

Thanks for hearing my problem.

My employer, since it's so large and moves people around so much, allows us to claim a legal state of residence. Right now, my legal residence is Mississippi, but I live in Alabama. However, as long as I work in my current job, I'll never be back in Mississippi. I have the opportunity now to become a resident of a state that doesn't collect state taxes, unlike Mississippi. I currently live and work in Alabama, a state that collects taxes, but am temporarily located, and will spend quite a bit of my career in Texas.

Should I change my legal state of residence to Texas, in order to save a couple hundred bucks a month?

I just don't feel comfortable paying taxes to Mississippi, when I neither live there, nor drive on its roads, nor use its schools. I could change my residence to Alabama, but in a year and a half, I'll be in the same boat. A ton of people claim the no-tax states, like Florida, Tennessee (I think) and Texas. I understand that doesn't make it right. Just sayin'.

I have to make the right decision, here. An unethical one is unacceptable to me.

 

How much will the saved money help you out in the long run?

 

It could certainly be turned into a college fund. It would be just above $200 a month.

 

If you're gonna be in Alabama for a year and a half, maybe you should establish Alabama residency now and switch to Texas after you move there. That would be the ethical thing.

 

If it were me, I'd do it.

 

Just because a decision is financially beneficial doesn't mean it's ethically compromising. When your life and work is based in Texas, by all means make it your legal residence. That said, I wouldn't do it yet, while you're living in Bama.

 

Sounds like you may have an ethical claim to more than one state, so why not select the one that is beneficial to you?

I give you credit for actually thinking it through and wanting to do the right thing. Honestly, I wouldn't even have to think about it.

 

I for sure would switch out of Mississippi. Like you said, you make no money there, you don't drive the roads and you don't use the schools.
If it were me, I'd jump on the Texas thing, but maybe ethics would dictate a switch to Alabama.
Just a question, of what state do you use the most? Meaning, not just sleep in, but drive, spend money and make money? That state is the one you live in, IMO, and I think that is the choice to make.

 

It's tricky, but although Mrs. t_b_f has made our physical residence there since early July, I won't be there until mid December. Since June, I've lived and worked in Washington, Oklahoma and now Texas.

I don't want to have to go through this each time I move, which'll be about every two years. And, at some point I'll be transferred to the company's Western Asian Bureau for a year and a half or so.

 

Then pick Texas, it's not about ethics, it's about stability and the fact that you won't pay state taxes is just a perk.

 

If she is there, then you are there (even if you're not there there; get it? )

Anyway, you should have no qualms about making Texas your legal residence if she is living there now. Again, just because it's financially beneficial doesn't make it ethically compromising.