The internet offers a wealth of information these days about neighborhoods, from restaurant reviews to local businesses and recreational activities. 15 steps to establishing residency in a new stateĪs we mention in our Checklist for Moving Out of State – Moving to Another State, research as much as possible about your new city before you move. Your nest might be emptying or you are retiring, or you might want a safer environment or a different climate. Those could include wanting a fresh start or a quality-of-life upgrade. Or maybe you’re moving for personal reasons. You could be accelerating your career or changing industries or are being relocated by your employer. Moving to another state for a new job opportunity is another reason, and it’s a common one. Other reasons for establishing residency in a new state could include: Obtaining lower state and business taxes, Obtaining in-state tuition at a university or college, voting in a swing state where your vote is more effective or being zoned for highly rated public schools in another state. Other reasons for establishing residency in a new state For example, snowbirds from New York often set up a second home in Florida and establish domicile in the Sunshine State to avoid paying New York income taxes. state that doesn’t impose state income taxes for at least 183 days. In order for residents of these states to avoid paying state income tax, they’ll need to live in a U.S. However, many residents of these states have second homes in places that do require residents to pay income taxes (think: Connecticut, New York and California, where income tax rates are quite high). These states include Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming. states do not require that residents pay income taxes. You’ll need to actually live there to claim residency come tax season. In other words, simply changing your driver’s license and opening a bank account in another state isn’t enough. Many states require that residents spend at least 183 days or more in a state to claim they live there for income tax purposes. The state you claim residency in should be the state where you spend the most time. So why do you need to establish residency in a new state, anyway? Tax purposes are the most important reason for establishing residency after you move. The main reason for establishing residency in a new state And don’t forget, there could be penalties coming from the IRS and other government organizations for having dual residency. Without it, your ability to pay property and state taxes, vote, drive, pay in-state college tuition fees, attend a public school and so on may be hindered.
Why your state of legal residence mattersĬutting ties with your former state and establishing residency in the new one is essential for a few important reasons.
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For a quick rundown on how to establish residency for tax purposes and personal reasons, keep reading. Before, during and after you move, this task should be a top priority. With so many things to do, it’s easy to forget one of the most important (if not, the most important) steps to relocating to a new state: establishing residency.
Moving to a new state? From finding a place to live and hiring movers to finding a job and meeting friends, moving to an entirely new city and state can be an overwhelming experience.