Question

residency once retired

Forum|Forum|1 year ago
January 12, 2025
1 reply
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I am a resident of IL and want to maintain my residency in IL when I retire, even though I plan on traveling abroad most of the time. I plan on keeping my driver license, my bank account, and on selling my house. Can I use a friend's home address to maintain my residency? Of course, I will file state taxes in IL.

thanks

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X

xmasbaby0

Illinois does not tax retirement income. So if you get Social Security or distributions from retirement accounts or a pension, you will not be entering any of that on an IL return. Will you have any other kind of income--like investment income? Interest on a 1099DIV? Rental property income? If not, you might not even need to file an IL return.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

E

EnrichettaAuthor

thanks. I might have investment income and maybe rental income. if so, I will have to file, right? can I do that without owning or renting a home?

T

TomD8

Yes----other kinds of income are taxed by IL---just not retirement income.

"Can I use a friend's home address to maintain my residency?"

Your residence for tax purposes is not determined by your mailing address. If it were, everyone would be renting a PO Box in a no-income tax state!

Here is Illinois' definition of resident: https://tax.illinois.gov/questionsandanswers/answer.369.html

The general rule is that your domicile does not change until you abandon it in one state and re-establish it in another state (or country).

The address you enter on your tax return should be the address you want the IRS or state taxing agency to use in case they have to send you a letter or a check.

Also: rental income from a property located in Illinois is taxable by Illinois regardless of whether you are an Illinois resident or not.

Bottom line: if you have not yet established a new domicile outside Illinois, then you should file an Illinois resident tax return. And it's OK to use your friend's mailing address if that's where you want your tax-related mail to go.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.