Showing posts with label Virginia. Show all posts
Showing posts with label Virginia. Show all posts

Tuesday, May 25, 2010

Home is Where...?

In the touchy-feely times of yesteryear, "Home is where the heart is." If that were true, I'd probably still be in southeast Ohio, but that is neither here nor there.

Because as far as the government is concerned, "Home is where you have domicile."

For many foreign service families, home is where you lived before you came to Virginia for training. Your children went to school in your home district; you still have many relatives there; and you might still own property there.

We are local hires, so one would probably assume that means Virginia or D.C. would be our home. But not so quick.

As of Aug. 1, assuming Natalie's successful completion of her Spanish test, we will be homeless - save for the home we'll occupy in Hermosillo, the one the government owns.

So it would appear we will be without a home. We're fine with that. Natalie's ancestors were gypsies anyway, I think. Uncle Sam won't care too much, because he'll still get our federal income tax. Oh, but wait, some state will be asking for a handout in the way of state income tax because we don't have any ties to Alaska, Florida, Nevada, South Dakota, Texas, Washington state or Wyoming.

I suppose to be fair, it isn't a complete freebie to our "domicile-hosting" state. After all, we will be able to vote in which ever state we choose. So let's round up the candidates.

Virginia:
This has been our home for the past three years
We have Virginia driver's licenses
Our car is registered here
We've been voting here
The company I'm most likely to do most of my work for is here
In all likelihood, during any D.C. tours, we'll probably come back here, too

That is a pretty strong argument for Virginia, though the first point has no bearing on the future, the next three can be easily switched to any other state in which we can establish residence, and the last two points are speculation.

Kentucky:
This is where we have the most familial ties
I was born here

For now, that is about the only thing keeping the Bluegrass State in the running, but that is more concrete than Virginia as we can establish residency here before moving to Mexico and then do the car and voting stuff in Kentucky.

Ohio:
This is where our second most of familial ties are
Natalie was born here
We got married here

Essentially the same key points as with Kentucky.

Washington, D.C.:
Natalie's employer is based here
We lived here for two years
We could live here during a D.C. tour

D.C. is much like Virginia, but just with weaker ties, but that could change in a few years.

The tricky thing about claiming a domicile is the issue of intent to live there. It is tricky for us because we don't have any intent to live anywhere other than where the government sends us. We don't intend to do a D.C. tour for at least four years, to ask us if we intend to live in either Virginia or D.C. (or <gasp> Maryland) now doesn't seem like a fair question.

Because choosing a domicile is essentially choosing which state we want to pay income taxes to, at least for our immediate purposes, it seems worthwhile to do another comparison exercise - comparing tax rates for our likely income bracket.

Washington, D.C.: 8%
Kentucky: 6%
Virginia: 5.75%
Ohio: 4.695% or 5.451% (the split occurs in our approximate income range)

So long to "My Old Kentucky Home" and I never liked living in D.C. anyway. Now we just need to decide if all that paperwork and legwork is worth "switching" our domicile from Virginia to Ohio, especially if we end up in the higher tax bracket.

Too bad we just can't build a little hut on the Texas-Mexico border and call that home. Who cares if our heart won't be in the hut, because "Home is where you pay your income taxes (if applicable)" anyway.

Thursday, February 25, 2010

A Hodge Podge Kind of Day

Too much going on these days that I'm going to have to bust out some bullet points to cover events. But I'll lead off with some highlights from last night's Fatiguing, Self-Inflicted (FSI) course on the logistics of moving overseas.

First, let me say that I did learn some good pointers about preparing for the movers. Piles, people. From anecdotal evidence, the movers pack everything in site, so you're best off creating piles of things you want packed together. Some examples included the movers packing a family's garbage, which they received with their second shipment*. Another funny story was about a cat getting packed. Fortunately, depending on your perspective, they realized the cat was packed before boxes left the building and were able to get it out**.

*I plan on addressing this more later, but the State Department uses the expressions (and acronyms) unaccompanied baggage (UAB) and household effects (HHE) to denote the two shipments of luggage you receive after arriving at your post. Wouldn't be a lot easier just to call them the first and second shipment? That seems less confusing.

**I like animals, even cats. But cats make terrible pets. Sorry, it's just how it is. If a house cat weighed 90 pounds instead of 9 pounds, it would eat you. Even at 9 pounds, cats spend most of the day thinking if they could fit you in their mouth. As an historical side note to this, cats are last animal that have been domesticated (dogs were the first), so maybe in another 50,000 years, they'll make for better pets.

So while the class had some good stuff, the main pitfall was that it was too general to be applicable. And I noted as much on my evaluation. Maybe start with the general stuff and then break into groups that will have similar pack-out day experiences. For example, the people moving to China will have a different experience - and therefore need different information - than those of us driving to Canada or Mexico. Or maybe create courses called The Logistics of Moving Overseas...in (X Country).

To wrap up, so far I haven't had great FSI experiences, but I'll keep going if for no other reason than to get more material to write about. That's right, I'll keep sacrificing my own time for you, the readers. Now let's tackle some bullets:

• First a shout-out to my local in-laws, and regular EF'M readers, Eric and Mindy, for taking Natalie and me to a Wizards game Monday night. I'm not much into the NBA, but seeing a game in person is an entirely different and more enjoyable experience than watching it on TV. Secondly, as bad as the Wizards have been the past two years, when I attend the game, they've gone something like 5-1. (Wizards, you should treat me to every game, and maybe you'd win more.) We plan on returning the favor by taking Eric and Mindy to a Naranjeros baseball game when they come to Hermosillo (2010 Mexican Pacific League Campeones! That is number 15, baby!)

• A member of our Hermosillo contingent had a baby boy earlier this week, so congratulations are in order.

• You probably won't be getting any weekend updates because Natalie and I are going to Charlottesville, Va., to hit up some wineries and Monticello with another couple. We created a list of things we wanted to do while living in Virginia, and this has been on there for a long time. And we realize this is not the last time we'll be living in this area, but this is kind of a farewell-see-ya-later tour that we are doing because we are foreign service rookies, and this is the kind of things rookies do.

• And finally, there is a new, unofficial countdown as Natalie received word from the Hermosillo Consulate that they would like her first day to be June 28. This moving thing keeps becoming more real every day.