Daily Money - Filing Taxes as a Mobile Worker

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February 22, 2022

Used to be, snowbirds would wait until retirement to take flight. But the pandemic has increased mobility for many workers, and some are starting to split their time between states much earlier than before. Money noted this phenomenon back in the fall. Now, it’s time to settle up with Uncle Sam. Having more than one home can complicate your income taxes. States are going to greater lengths than before to make taxpayers prove that they actually spend the bulk of their time in the place they call their primary residence. Keeping track of the number of days you spend in a given location is only the start. One expert described the “teddy bear test”: where do you keep your most prized possessions? You may claim to be a Floridian, but if you keep your will and other important documents back in New York, you might have a harder time making your case. In today’s edition, learn more about filing your taxes as a mobile worker or retiree.

Best wishes,
 
 
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Timely Retirement News, Insights and Advice

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Reader of the Week

What are you up to these days?

I’ve been retired for nearly four years now, but my version of retirement includes my wife and I working part time for our son-in-law’s electronics business. It’s the kind of work that allows for plenty of flexibility to pursue other interests, such as traveling (pre-pandemic Alaska cruise-tour and an upcoming trip with grandkids to Disney), walking and me trying to learn the saxophone (wah-wow).
 
Our seven grandchildren – ranging from a 22-year-old to 3-year-old twins – all live nearby and we love spending time with them, from going to their sporting and school events to playing backyard games to hosting sleepovers. We also are on school drop-off and pickup on a regular basis for two of them, so sometimes my wife Cindy and I feel like we’re living the split-shift lives of school bus drivers. But we love it because it gives us more precious time with them. This isn’t necessarily how we’d foreseen retirement but it keeps us on the go and we love it.
 
I admit that for much of our early retirement I was obsessed with looking at the markets and their effect on our finances, as often as several times a day. It drove my wife nuts. But, as even my wife will admit, I’ve gotten better. I’ve always updated our net worth quarterly; now, however, I’m resisting the urge to peek, and I feel less stressed.
 
Whew! What’s your best advice about retirement?

 For those of you on the precipice of taking the big leap into retirement, save, save, save (hopefully you’ve been doing that), plan, plan, plan … and then be prepared for many variations you didn’t see coming. But embrace them. Don’t feel derailed. When you’re young, you think you’ve got a whole lifetime to hit all the things on your bucket list, but you probably won’t. Maybe you won’t have the time, or good health, or something completely different comes along that you fall in love with. I remember I started retirement with a daily to-do list and got frustrated if I didn’t get to all of them, but I soon realized, “Hey, I’m retired. I’ll get to it tomorrow!” Hopefully we’ve all got enough tomorrows to accomplish our goals, even if they aren’t as exciting as parasailing. Maybe just a relaxing evening with a good book in front of a fire, or a few laps in the pool at the Y.
 
Lovely! Tell us something (or someone) you’re grateful for.

I’m grateful to my grandmother, a schoolteacher who lived with us when I was a kid. She taught me the value of a dollar. She encouraged (no, make that insisted) that I participate in a grade-school savings program with a local bank. She gave me $1 a week to deposit into my passbook savings account. It wasn’t a lot of money, but it ingrained in me the importance of being prepared for that rainy day, and, by extension, retirement.

Retirement News From Around The Web

Workers: Social Security Info Is Eye-Opening
Not enough workers create a my SocialSecurity account to get an estimate of their future retirement benefits, but those who do find it revelatory. SQUARED AWAY BLOG

What You Need to Know About the Job Market in 2022
Before quitting your job, explore ways to turn your current position into a more attractive role. NEXT AVENUE

Most Investors Don’t Need to Worry About the Alternative Minimum Tax Hitting Their Muni Bond Holdings
Here’s why the once-dreaded AMT tax could be less of a factor these days. CNBC

Boom? Doom? Be Wary of Wall Street Crystal Balls
The important reason why your weather forecaster sounds different from stock market pundits. AARP

Elizabeth O'Brien is deputy editor at Money. She has covered retirement and health care for nearly a decade. A Brooklyn resident and mom of two boys, she navigates the alphabet soup of Medicare and the New York City subway system with equal ease. You can email her at elizabeth.obrien@money.com and follow her on Twitter at @elizobrien.

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