Thinking About Moving to a New State?

[Ashish Acharya]

Relocating to a new state is exciting—whether it's for a new job, the freedom of remote work, or a fresh start in a warmer climate or near family. Plus, some states offer tax benefits that make moving even more appealing.

But here’s the catch: If you don’t take the right steps to establish your new state as your official domicile, you could end up dealing with taxes in BOTH your new and old states—or even face disputes over your estate.

To make your transition smoother and avoid unnecessary tax headaches, here are a few key steps to consider:

1. Settle into your new state

- Buy or lease a home there and, if possible, sell or rent out your old residence.

- Move your belongings and start living in your new home full-time.

2. Update your records

- Change your address with the post office and on official documents like tax returns, insurance, and passports.

- Register to vote, get a driver’s license, and register your vehicles in your new state.

3. Focus on your new life

- Spend most of your time in your new state, especially during family events and holidays.

- Switch to local banks and transfer items from your old state’s safe deposit boxes.

- Find local doctors, dentists, and other service providers to truly integrate into your new community.

4. Handle your taxes the right way

- File a resident tax return in your new state and a nonresident return in your old state if required. For the year you move, you may need to file part-year returns in both states.

Relocating can be a game changer, but the details matter—especially when it comes to taxes. Take these steps to ensure your move is seamless and worry-free!

Have questions about state residency or taxes? Let’s connect!