States Make it Hard for Residents To Escape To Low-Tax Jurisdictions

You might think that moving to a state with no income tax would greatly simplify your tax life. Not so fast.

If you're not careful, it could greatly complicate things and cost you tons in back taxes and penalties.

For example, if you are still planning to spend significant time in your former state, you better limit it to less than 183 days.

Why? Spending any more time there could mean you'll be treated as a resident of that state and therefore have to pay tax.

And it's not just days spent in-state that tax authorities may scrutinize. They will look at a host of factors to see if you legally owe them taxes despite setting up a new home elsewhere.

#Taxes