Moving day – Your new home state can change your tax circumstances
Abstract: Someone who is moving out of state can find it beneficial to take a closer look at how the new home state may affect their tax liability. What are the state’s income, property, sales or estate taxes? Are there tax breaks for pension payments, retirement plan distributions and Social Security payments? What about state and local income taxes, which aren’t deductible for AMT purposes? And how do property taxes compare in the city or suburbs vs. a rural area? And, for those who own homes in multiple states, it’s important to take steps to establish domicile in one, or else possibly face unnecessary negative tax consequences.