By Sidney Kess, James R. Grimaldi, and James A.J. Revels
CPA Journal
May 2018 Issue
Americans average 11.7 moves over their lifetime, according to the U.S. Census Bureau (“Calculating Migration Data Using ACS Data,” http://bit.ly/2pRvXxn). People move because of a job, retirement, health, or for any number of other reasons; in view of the new cap on the itemized deduction for state and local taxes, a growing number of individuals might move to reduce their overall tax burden. United Van Lines reported in 2017 (2017 National Movers Study, http://bit.ly/2pPmVSp) that Vermont was the top inbound destination, followed by Oregon, Idaho, Nevada, South Dakota, and Washington (the last three of which have no state income tax). Atlas Van Lines found different moving patterns, but also showed considerable relocation into certain states other than those already listed, including Tennessee (which taxes only interest and dividends now, but will have no tax starting in 2022), Alaska (no state income tax), Idaho, and Maine (2017 Migration Patterns, http://bit.ly/2pOkNdM). This article does not address whether a move to another state is advisable, how to handle the stress of the move, or how to acclimate to a new state’s culture. It focuses on what needs to be considered from the financial, legal, and tax perspectives when a move to another state is made.
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Published with permission from the CPA Journal.
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