Should I be a NY, NJ, or CT resident?
November 22, 2011 8:33 AM Subscribe
I'm trying to figure out where I should establish residency. I'm currently a NJ resident because I lived in a co-op apartment that I own there for about 5 years; I have been renting it out for about 2 years now. My current official mailing address is still in NJ (at a UPS store, so it just looks like a regular address). For the past year-ish, I've lived in CT in a house my father owns. Going forward, I will be living half of the time with my fiancee in Brooklyn and the other half here in CT. So, where is the best place for me to establish residency?
The considerations that immediately come to mind are taxes (including what happens to my property tax in NJ if I'm not a NJ resident) and health insurance. I'm currently on Horizon Blue Cross Blue Shield of NJ and I don't know if I have to continue to be a NJ resident to keep it. It's decent health insurance and only costs ~$250/month. Oh, and also auto insurance.
Also, I'm not sure how sketchy it is that I'm using a UPS store PO box as a home address.
And I'd imagine there are considerations I haven't even though of.
The considerations that immediately come to mind are taxes (including what happens to my property tax in NJ if I'm not a NJ resident) and health insurance. I'm currently on Horizon Blue Cross Blue Shield of NJ and I don't know if I have to continue to be a NJ resident to keep it. It's decent health insurance and only costs ~$250/month. Oh, and also auto insurance.
Also, I'm not sure how sketchy it is that I'm using a UPS store PO box as a home address.
And I'd imagine there are considerations I haven't even though of.
Or, phrased more succinctly --
It looks like the only reason you're considering a New Jersey residence is so that you can maintain your existing health insurance. Is there a particular reason you want to do that?
posted by EmpressCallipygos at 8:46 AM on November 22, 2011
It looks like the only reason you're considering a New Jersey residence is so that you can maintain your existing health insurance. Is there a particular reason you want to do that?
posted by EmpressCallipygos at 8:46 AM on November 22, 2011
By having a condo and car in NJ, you are paying a premium on real estate taxes and auto insurance. How likely is it that the money you're saving on health insurance (if any) makes up for the additional money you pay on the other two things?
posted by deanc at 8:48 AM on November 22, 2011
posted by deanc at 8:48 AM on November 22, 2011
For snow birds who split time between Florida and a northeast state, it is simply where do you spend 181 days?
posted by JohnnyGunn at 9:48 AM on November 22, 2011
posted by JohnnyGunn at 9:48 AM on November 22, 2011
Response by poster: Insurance: Yeah, I think comparable insurance would be ~$200 more per month. However, there's a possibility it would have better coverage for the doctor(s) I go to so that might make up some of the difference.
posted by SampleSize at 9:51 AM on November 22, 2011
posted by SampleSize at 9:51 AM on November 22, 2011
Where do you work (what state does your income come from) should be another factor to look into.
posted by WeekendJen at 11:10 AM on November 22, 2011
posted by WeekendJen at 11:10 AM on November 22, 2011
If you have an accountant does your taxes, they would likely do a relatively cheap consultation with you on this and show you the "cheapest" residency setup.
posted by WeekendJen at 11:13 AM on November 22, 2011
posted by WeekendJen at 11:13 AM on November 22, 2011
Response by poster: I work freelance from my laptop at the moment, though I may be getting a "real" job soon. Not sure what state that will be in yet.
posted by SampleSize at 11:16 AM on November 22, 2011
posted by SampleSize at 11:16 AM on November 22, 2011
Response by poster: Most of my clients are NY-based.
posted by SampleSize at 11:17 AM on November 22, 2011
posted by SampleSize at 11:17 AM on November 22, 2011
One thing to consider is that in CT you pay property tax on your car. This could be significant, depending on the value of your car and the mill rate of the town where you establish residency. A car valued at 15K in a town with a mill rate of 40 is going to be taxed $600 per year.
Car insurance is generally cheaper in CT, but again I think that can really depend on where you live. I had cheap car insurance in NJ and I have cheap car insurance here in CT.
CT also just raised income taxes for 2011, and made them retroactive until the beginning of the year. I don't really know anything about income taxes and living in a different state than where you work, I just wanted to point that one out.
posted by smalls at 3:50 PM on November 22, 2011
Car insurance is generally cheaper in CT, but again I think that can really depend on where you live. I had cheap car insurance in NJ and I have cheap car insurance here in CT.
CT also just raised income taxes for 2011, and made them retroactive until the beginning of the year. I don't really know anything about income taxes and living in a different state than where you work, I just wanted to point that one out.
posted by smalls at 3:50 PM on November 22, 2011
This thread is closed to new comments.
The only other person I know of who was in a situation like yours (Maintaining a residence for a state they didn't live in) it was also becuase she had insurance in the state in question, and wanted to keep it because the costs of changing would have been prohibitive. So are there similar reasons why you need to maintain the New Jersey insurance?
If not, then... I'm not seeing the reason to keep New Jersey as a residence after all, and then you'd only have to pick between the New York and Connecticut residency.
posted by EmpressCallipygos at 8:39 AM on November 22, 2011