11 décembre 2022
When Are You Considered a Legal Resident of a State
Posted by under: Non classé .
Why do you need to move to a new state? Tax purposes are the most important reason to establish residency after your move. The state where you claim residency should be the state where you spend most of your time. Many states require residents to spend at least 183 days or more in a state to pretend they live there for income tax purposes. In other words, it`s not enough to just change your driver`s license and open a bank account in another state. You must live there to apply for residency during tax season. The reason? Several U.S. states do not require residents to pay income taxes. These states include Florida, New Hampshire, Alaska, Nevada, South Dakota, Texas, Washington, Wyoming, and Tennessee. However, many residents of these states have second homes in places where residents have to pay income taxes (think: Connecticut, New York, and California, where income tax rates are quite high). In order for residents of these states to avoid paying state income tax, they must live in a U.S. state that does not collect income tax for at least 183 days.
For example, New York snowbirds often set up a second home in Florida and move to the Sunshine State to avoid paying income taxes in New York. First and foremost, when you move to a new state, you need to find a place to live. Whether buying a detached house or renting an apartment, make sure you have a fixed address. Note that mailboxes don`t count. » MORE: What are the income tax rates in some states? Record the time spent in each state, preferably with more time in your new state of residence (due to the 183-day rule). This handy spreadsheet, compiled with information from individual government websites and accounting and payroll software company Patriot, will help. The TaxSlayer.com website is a useful place to find your state`s (or, in DC`s case, your city`s) tax website. Finally, it`s important to let your friends and family know about your move if you`re taking up residence in a new state. Fortunately, in today`s always-connected world, it`s all too easy to contact loved ones. Just send an email, post a message on Facebook, or send an official move announcement after the move. Are you planning to move to another state or are you already spending time in more than one state? Maybe you want to pursue a job opportunity or be closer to your family — or maybe you want to retire to a state with lower taxes. If you`re moving to a neighboring state but continue to work in your former state, be sure to check if both governments offer « reciprocity » when it comes to income tax.
This is a special arrangement between states where you only pay taxes where you reside, as long as your work in the other state was your only source of income. Any income from other sources, such as rental income or lottery winnings, is generally not included. Moving with a pet? Your new state may require you to register your pet and obtain a license within a month of your move. This is to ensure that the animal is up to date with vaccinations and public safety vaccines. Be sure to check with your state for details on how to register a pet during a move. If you move from one state to another, you may need to file your return both in your new state and in your previous state as a part-time resident. According to our research, seven states — Alaska, Nevada, South Dakota, Texas, Washington, Wyoming, and Florida — have no income taxes, and residents of two other states, New Hampshire and Tennessee, only have to pay taxes on dividends and interest. Still, most states require you to file a tax return if you earned income from it — whether through salary or self-employment — or if you earned real estate income in the state. Illinois residents, for example, don`t have to pay taxes on income earned in Iowa, Kentucky, Michigan or Wisconsin — they just need to file a return in their home state. If one of these states deducted income tax throughout the year and you lived in Illinois, you are entitled to a refund of that withholding tax. It`s no secret that paying taxes is a lengthy process and, of course, just plain complicated to move. To establish residency in a new state, you must file your tax returns in that state.
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