Wednesday, March 21, 2012

Commentary

Several queries have been received regarding change of residence to a more tax friendly RV state. Before jumping the fence, I suggest you do your homework. As you know, almost every state is financially strapped and your state of residence isn't thrilled at the prospect of losing you, especially if you are a contributing member to their financial coffers! If any state has a lower income tax, or no income tax, than the state you're currently in, the state with the lower income tax rate has to make up the revenue source somehow. It is my experience, having prepared tax returns in multiple states, you will find either higher property taxes, higher sales taxes, and higher vehicle license fees. Also, just because you have moved out of your current state, don't think the state you left behind is finished with you! Believe it or not, here in California I've attended tax seminars where one of the topics is "How to Become a California Non Resident!"

Notice the link to all the states on the left. If you click on the link to each state, start with Filing Requirements for Non-Residents. Notice how many states want an income tax return even if you have only $1 of source income from that state. It will be a real eye opener. Remember, the technology now exists where you can (and will be) followed wherever you go. I could go on and on, but remember one thing: there is more to life than taxes, just be smart about any move you may be contemplating.

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