Merchant Mariner State Income Taxes

[Aahwaanith]

s About Taxes)/Merchant Mariner state income taxes Advertisement Expert: MEdusa - 2/28/2011 To Randall Klein,

I am a merchant mariner with coast guard credentials. I work as a mate on a sailing vessel owned by a non-profit organization. Last year I lived in an apartment for the first 4 months of the year as maintenance was being done on the vessel. I lived locally so that I could work on the vessel - in Maryland. For the rest of the year I was living onboard the vessel and we were in waters of several different states throughout the rest of the year. I make under $30,000 a year working for this non-profit. I am still young and I do not own a house or have a family, so I use my parents address in Michigan for my driver's license and mail and otherwise consider it my address. However, I only spend a few weeks out of the year at their house.  When I file state taxes for 2010, should I consider myself a resident of Maryland for 4 months(and file state and city taxes for MD saying I lived in the state for 4 months) and file no state tax returns in MI? Additionally, in the upcoming year I will spend most of my time living and working onboard a different vessel and will spend no considerable time in any state. The vessel will never sail to the state that its company is located(MA). I will never rent an apartment in the upcoming year. Should I file state tax returns in any state? I will continue to use my parents address(MI) for a mailing address.

Thank you for your help.

[Wing]

first of all - f@cking Kudos to you for taking off and seeing the world.  That take HUGE ovaries and you should be commended for doing it.  I am totally jealous.  Do you have a sixpack or 100 ton? that said.  

in the absence of a true home... home is sort of where your heart is. in no particular order because I like to wander...

yes, you need to file in Maryland for the period you lived there.  For ease of transition, I would claim Maryland as your home and resident state for the whole year.  File final and mark the return as final in 2010.  File a zero return as non resident to Michigan in 2010 if you have filed as a resident in the past.   if you were at dock or in port for a long period in another state in 2010, you should also allocate some of your income to that state and use the non resident forms for that state.  Maryland will give you a credit for the tax paid to the other state so you wont pay any more total. or overall.  

that clears up 2010. Next, landing in port and staying over a few days does not create 'nexus' the required amount of physical presence in a state.  If you stay in port for an extended portion of time in 2011 you should allocate those days in and out of a particular state(each one has a different standard, but generally 10 days is a good threshold - but GA is one day !!!!) Your home resident state moving forward is where you want to be when you get off the ship.  If it were me, I would get really familiar with Florida :)  as they don't have an income tax. ask a new question with a new private inquiry and include your email and I will follow up with my contact information if you want additional help.