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Topic: Illinois Driving License & State Taxes  (Read 688 times)

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Illinois Driving License & State Taxes
« on: May 09, 2018, 12:54:07 PM »
I'm considering switching my US license from another state to an Illinois one when I visit family this summer. The reason I want to do this is that my other US license is about to expire, and since I'm still working on getting the UK one, I don't want to end up with no license altogether. My main concern is that getting the license might make me liable for Illinois state taxes. I can't find any information online. Do any of you know if Illinois is likely to require this from a state license holder?
« Last Edit: May 09, 2018, 01:30:13 PM by AncestrySpouse »


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Re: Illinois Driving License & State Taxes
« Reply #1 on: May 09, 2018, 01:02:07 PM »
I'm considering switching my US license from another state to an Illinois one when I visit family this summer. The reason I want to do this is that my other US license is about to expire, and since I'm still working on getting the UK one, I don't want to end up with no license altogether. My main concern is that getting the license might make me liable for Illinois state taxes. I can't find anything information online. Do any of you know if Illinois is likely to require this from a state license holder?
I don’t know Illinois but New York certainly took my keeping a NY license as one piece of evidence in their favor. I eventually won because I could prove days away but ... states like their revenue and claiming an address for licence purposes could set them off. However In my own experience what really gets states going is having a tax document (about wages or dividends) issued to an in state address. One former company I worked for did all its data processing in St Louis and one year issued all its W2s for expats with a St Louis address and of course we all got dinged for unpaid Missouri taxes! Again, we won but it was a hassle. My advice would be get the UK license and give up the US one, but i understand the risks of being left without.


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Re: Illinois Driving License & State Taxes
« Reply #2 on: May 09, 2018, 01:05:26 PM »
I'm considering switching my US license from another state to an Illinois one when I visit family this summer. The reason I want to do this is that my other US license is about to expire, and since I'm still working on getting the UK one, I don't want to end up with no license altogether. My main concern is that getting the license might make me liable for Illinois state taxes. I can't find anything information online. Do any of you know if Illinois is likely to require this from a state license holder?

Can you renew your current license online?  Often times you can do this once or twice before having to go in person again.


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Re: Illinois Driving License & State Taxes
« Reply #3 on: May 09, 2018, 01:25:19 PM »
Can you renew your current license online?  Often times you can do this once or twice before having to go in person again.

I probably could renew online, but think I'd need an address in that state to have it mailed to and don't really know anyone living there well enough to ask them to do that. In addition, my most recent state of residence is one of the ones notorious for trying to claim long-term state taxes from expats (whereas Illinois, from what I've read online, is not).


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Re: Illinois Driving License & State Taxes
« Reply #4 on: May 09, 2018, 01:37:20 PM »
Won't you have to prove residency anyway in a new state?

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Re: Illinois Driving License & State Taxes
« Reply #5 on: May 09, 2018, 06:20:48 PM »
Won't you have to prove residency anyway in a new state?

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Yes, but I can easily meet this requirement by having something like a bank statement mailed to my parents per IL's website.


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Re: Illinois Driving License & State Taxes
« Reply #6 on: May 09, 2018, 07:48:14 PM »
Yes, but I can easily meet this requirement by having something like a bank statement mailed to my parents per IL's website.
Ahh. But once you have a bank statement sent, the bank will report interest on the account - they report both to the irs and to the state authorities based on the address. And then your fun will begin.


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Re: Illinois Driving License & State Taxes
« Reply #7 on: May 10, 2018, 09:33:41 AM »
Most states require you to be a actual resident to qualify for a DL, and some are very strict about providing false information, to the point that your license is invalid for insurance and other purposes. I would think very carefully about this - and others are quite correct, if you claim residency, then you are liable for state taxes.

A few states aren't so strict, but I personally have issues with deception. Using an address where you do not reside is deception; end of, but your life, your risk.
Married December 1992 (my 'old flame' whom I first met in the mid-70s)
1st move to UK - 1993 (Letter of Consent granted at British Embassy in Washington DC)
ILR - 1994 (1 year later - no fee way back then!)
Back to US in 2000
Returned to UK July 2011 (Spousal Visa/KOL endorsement)
ILR - September 2011
Application for naturalization submitted July 2014
Approval received 15-10-14; ceremony scheduled for 10 November!
Passport arrived 25 November 2014. Finally done!


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Re: Illinois Driving License & State Taxes
« Reply #8 on: May 10, 2018, 11:10:04 AM »
Ahh. But once you have a bank statement sent, the bank will report interest on the account - they report both to the irs and to the state authorities based on the address. And then your fun will begin.


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This is very useful, thanks. I've actually been using the IL address for the account's permanent address since I moved, with a UK mailing address, because the bank won't let me use a primary address that's not in the US. The account's never earned enough interest to trigger tax filing forms. Is this still a concern?

I am aware it's deceptive to use an address in a state you don't live, however it also seems like many Americans I've met in the UK have maintained a US license despite living abroad for many years and haven't mentioned owing state taxes. Are they just not getting caught? I'm not entirely sure what a good option is here as having no license altogether is also a major concern. I won't be in the US until this summer, and maybe it'd make sense to do some research and anonymously call the DMV or state controller's office for an opinion.


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Re: Illinois Driving License & State Taxes
« Reply #9 on: May 10, 2018, 11:31:22 AM »
This is very useful, thanks. I've actually been using the IL address for the account's permanent address since I moved, with a UK mailing address, because the bank won't let me use a primary address that's not in the US. The account's never earned enough interest to trigger tax filing forms. Is this still a concern?

It is the bit-by-bit part that becomes a problem. If all you have is the address, that’s easy to make go away if they come after you for tax - you simply show you don’t actually live there, use it as a mail drop and -poof- the problem disappears. But if you have applied for a licence claiming residency then all of a sudden there are two things they can point to. When does it become too many? That’s a “judgment” call - not a black and white rule like, for example , the law many places have that if you’ve been there more than 183 days you’re tax liable no matter what. My concern about your plan is that there seems a real difference between keeping your old licence and renewing it because you’re overseas “temporarily “ and making a positive explicit declaration that you are now Illinois resident to get a licence. But I’m not a lawyer - I don’t even play one on TV!


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Re: Illinois Driving License & State Taxes
« Reply #10 on: May 10, 2018, 04:00:27 PM »
This is very useful, thanks. I've actually been using the IL address for the account's permanent address since I moved, with a UK mailing address, because the bank won't let me use a primary address that's not in the US. The account's never earned enough interest to trigger tax filing forms. Is this still a concern?

I am aware it's deceptive to use an address in a state you don't live, however it also seems like many Americans I've met in the UK have maintained a US license despite living abroad for many years and haven't mentioned owing state taxes. Are they just not getting caught? I'm not entirely sure what a good option is here as having no license altogether is also a major concern. I won't be in the US until this summer, and maybe it'd make sense to do some research and anonymously call the DMV or state controller's office for an opinion.

Take a look at some of the RV travelers sites.  there are places where you can get a fixed mailing address, as well as a drivers license.  But I think there are certain requirements you have to meet to get a DL in this states.

I had looked at a service in Florida, mostly because FL has no income tax on retirement.  You can get a DL as a nomad, but IIRC you need to register a RV or boat in that state, to be able to get a DL.


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