How to avoid paying state income tax?

Question

My ex CFO told me that as a Florida resident, he does not pay any state income tax. How do I go about setting that up for myself? I am self employed and living in NYC.

Thanks.

Answer 1

There are a number of states that have no state income tax and it would be to your advantage to become "domiciled in one of those. South Dakota and Texas are the two most commonly used for this purpose.
To obtain a South Dakota address from a company called MyDakotaAddress.com, you simply complete the Mail Forwarding Service Agreement, and PS Form 1583 found on their web-site. Their address becomes your new physical street address and qualifies for your South Dakota Vehicle Registrations, South Dakota drivers license, and voter registration.
There are a number of issues that must be addressed and NYC is not the best local because I understand they attempt to tax any money you make in the city with a non resident city tax. If you are self employed and all of your income goes to your new domicile in South Dakota rather than NYC you may be onto something.

Answer 2

There is no way you can get away from paying State Income Tax unless you live in the States don t have State Tax. The best way to avoid paying taxes is making yourself totally exempt from both Federal and State Taxes. Remember if you do exempt from Federal Taxes you will NOT get money when you retired. Think before you take Federal Taxes off.

Answer 3

Florida doesn't have a state income tax. NY does. The way to get out of paying state income tax is to move to a state that doesn't have one.

By the way, what Matthew is suggesting is tax fraud unless you really live in the state you claim as your address.

Answer 4

If you claim your deductions right, enough state taxes will come out of your paycheck and you shouldn't owe any at the end of the year.