“How Do We Pay Taxes?” This post is an answer to one of our followers’ questions.
What are the two things we spend our lives trying to avoid?
Death and Taxes!
So far, by the grace of God, we haven’t been called home yet, but…NO ONE can avoid the tax man!
If you go back and read the post from January 20, 2024, you’ll see all the research that went into what state we would claim as our domicile. This decision was based on MANY factors, but one of the more weighted topics was TAXES!
So, how do we, who are “on the road” all the time, pay taxes? And, which state(s) do we pay taxes to? Settle in…here is the answer to this question.
Just like you, we file our federal taxes and pay “the man” every year during tax season. With regard to state income taxes, one of the reasons that we chose to remain residents of Illinois is that retirement income isn’t taxed in Illinois. This helps to keep the crooked Illinois politicians’ hands off of Ken’s teacher pension. So, as a result, we don’t pay any state tax to Illinois from Ken’s pension. Last year (2024), we earned income from our regular careers in Illinois, from Knutson Farms in Crookston, Minnesota, and Bowlin Travel Centers in Albuquerque, New Mexico. As a result, when we stopped in Joliet in March, one of our visits was to our tax accountant, who filed taxes for us with the Federal government and the states of Illinois, Minnesota, and New Mexico.
But, what about the income from Shamrock RV Service? The company is a registered LLC in Illinois, so no matter where we do the inspection or RV work, we pay income tax to the state of Illinois. The good news is that SRVS income is considered “flow-through” income to us personally, so we use the expenses of the company to offset the company’s gross revenue, and if we’re lucky, create an income deduction for us personally.
This year, we will have earned income in Michigan (March-October) and likely, Texas (November & December). Our job in Silverton, Texas, from January to March was a “site only” pay position, meaning we stayed on site at no cost and volunteered our work time in exchange for the site.
So, the bottom line is we still pay federal taxes on our income like everyone else, but because we earn income in different states, we need to file taxes in every state where we earn income. It’s not a big deal, and in fact, it’s a small price to pay for the lifestyle we get to live.
Please comment below with what you are wondering about regarding our RV lifestyle!
There is also a photo story below.
Sheila and Amber had a BBQ at their place in Somonauk, IL. We did a quick road trip to join in on the fun. Liam drove over from Fort Wayne, also. Well worth the drive!
The camp host site (our site) at Wonder Woods RV Park & Cabins.
Ken is inflating one of the two new kayaks we bought. SO FUN!!! The kids gave us gift cards for “parent’s” day so we put them towards these!
Benny made a cameo appearance in the Beard Cooking Show!
We had some visitors at the campground who preferred to have someone else get their rig into the campsite. Don’t ask Ken twice!!
During this month’s visit to Springfield, Chris brought her Mom to meet with most of her Mom’s siblings halfway between Springfield and Columbia, IL. A number of spouses and four cousins also joined in! It was very last minute and sometimes that works out the best! They had a great time!!!
Here is Chris making her way from the sandbar back to the public access area on Round Lake!
The RV Park owners bought two RVs to add to the accommodation roster. This one is called Wonder Woods “HideOut”!
Slowly, but surely!
This didn’t make for a great day. While backing one of the new rental RVs into its site, Ken allowed himself to get distracted and sideswiped a light pole. Having an aluminum body truck is great until it needs bodywork. Please send donations!
Mike Bowe and his Dad stopped by for a surprise visit. Chris and Mike travelled together in Up With People way back in 1984!
Us, out on Round Lake.
We added Michigan to our map of states where we have “work-camped.”
Here we are on our maiden inflatable kayak voyage!
This is an unbelievable story…Ken posted on FB asking if anyone had the entire series of M*A*S*H on DVD and if they did, could he pay for postage and return the set when finished. A long-time friend, Steve, just bought the set on Amazon and shipped it to Ken at the campground. Ken still isn’t sure why someone would do something SO nice. Fact: When M*A*S*H went off the air in 1983, Ken wrote a letter to Gary Burgoff, the producer pleading with him to keep the series going.
