Alex is the founder of 9Kilo Moving, which he started to help people easily find and choose the right moving company to make their move as stress-free and seamless as possible.
He has spent over 20 years working in the moving industry, so he knows every aspect of the business and uses his knowledge to write about the industry and give moving advice.
Moving to another state will give you exciting possibilities such as new friends, new jobs, new opportunities, new house, and new surroundings. However, moving to a new state can be overwhelming, especially if it is your first move to another state.
Without proper planning, you may easily undermine the essential procedure in moving to another state: establishing residency. This task should be a top priority for you before, during, and after relocating to a new state. Failure to do so may land you in trouble with government institutions such as the Internal Revenue Service.
In addition, lack of establishing residency could limit your ability to vote, drive, and possess a vehicle. However, with the right planning, you can capitalize on your new location and the exciting opportunities it promises. Here is a guide on why establishing residency is vital and how you can go about it.
The Main Aim of Establishing Residency in Another StateWhy are you required to establish residency after relocating to a new state? Tax is the main reason for establishing residency after relocating. Because each state in the United States has its tax laws, you may want to take advantage of tax benefits available in another state by establishing residency there.
See also: 7 States with Lowest Taxes
The state you claim as your residency should be the state where you spend most of your time. Most states will need you to spend at least 183 days to claim you live there on income tax grounds. This merely means opening a bank account, and changing your driver’s license in a new state isn’t sufficient as you will indeed have to live there to claim residency during the tax period.
The 183-day rule is in place because a number of states do not require their residents to pay income tax. These states include New Hampshire, Florida, Alaska, South Dakota, Washington, Texas, Nevada, Tennessee, and Wyoming. However, most inhabitants of these states have other homes in states that need inhabitants to pay income tax, such as California, New York, and Connecticut.
So as to achieve not paying income taxes, residents of the states mentioned above will need to live in another state that doesn’t levy income tax based on the 183-day rule. For instance, residents of Snowbird in New York usually set up second homes in Florida and establish residence to avoid paying New York state taxes.
See also: Should You Move to a State with No Income Tax
Further reasons for establishing residency in another state
Further reasons for establishing a permanent home in another state include; gaining lower business and state taxes, securing in-state tuition at a college or university, being close to a highly esteemed public school in a new state, and voting in another state where you vote will be more effective.
CALCULATE MY MOVE
12 Steps to Establishing Residency in Another State
This should be the first step when relocating to another state as you will need a place to reside in. Be it buying a home or renting an apartment, ensure you have a permanent street address. Bear in mind private mail box address does not count.
If you aim to make the new state your primary home, you need to establish legal residency immediately after relocating. In addition to this, you will have to fill the “Declaration of Domicile,” an official document proclaiming your new home as your permanent residency. In states like Texas, which have tax benefits, people who relocate there are required to fill out this document.
Make sure you research on the new state’s exact requirements for establishing residency.
After purchasing a home or signing a lease, make sure you change your postal address with United States Postal Service by visiting the closest post office and filling out a change of address document. If you established a new domicile before relocating, you could forward your mail as you prefer.
To forward your mail, simply go to the U.S. Postal Services website and select a date from which you wish to start forwarding your correspondence.
See also: Change of Address Checklist
Before relocating, make sure you contact your service providers and inform them about your impending change of address. If you are moving to a neighboring state, you should program on and off dates for services such as water and sewer, gas, satellite, cable and internet, security systems, and phone. You should also ensure that you inform your insurance provider of your change in address.
When relocating to another state, we advise you to shop around and differentiate various insurance rates from multiple insurance companies.
When you relocate to another state, make sure you immediately revise your information with the Internal Revenue Service. This will make it possible for you to get tax refunds and mail in time. To submit your new address, fill in form 8822.
See also: IRS Moving Expense Deductions
Ensure you register to vote when establishing a permanent home in a new state. To register, call, or visit your local town hall for information. You may also register to vote when getting a new driver’s license at your town Department of Motor Vehicles.
Do you want to drive in your new state? If yes, then you are required to apply for a new driver’s license. Luckily, if you had one in your former state, getting a new one wouldn’t be difficult. Make sure you find out about local prerequisites before visiting the DMV.
Odds are you will be required to bring your present driver’s license, social security card, proof of residency, and any other type of identification. While at this, make sure you register your car to acquire a new license plate.
If you do not drive, you are required to apply for a non-driver’s state ID card.
For you to establish residency in another state, you must revise your bank account details and credit card billing addresses immediately after moving.
Paying taxes is a tiresome process, and relocating to another state only makes matters more complicated. To establish a permanent home in another state, you are required to submit your tax returns in that state. We highly recommend you hire an accountant during the first year to ease the transition.
If you own a professional license from your previous state, you should transfer it to the new state. To do this, contact the governing body of your profession in the new state. Temporary licenses are usually approved as soon as you apply while you wait on the permanent license.
Are you relocating with a pet? Your new state may need you to register your pet and buy a license during the first month of moving. This is to make sure your pet has up-to-date vaccines for purposes of public safety. Make sure you research the details on registering a pet when relocating.
Lastly, when establishing a permanent home in a new state, it is crucial you inform your family and friends about your move. You can quickly notify them by making a social media post, sending an email, or an official moving notice.
Are You Ready to Move?
Moving to another state involves a lot of hassle. Luckily for you, 9Kilo.com will assist you with your moving needs. We boast of a vast network of dependable and reputable movers, making it easy for you to contract the best moving company that suits you. Make sure the moving company that you hire is insured and licensed; so that, there’s no concern about your possessions’ safety!.
Enjoy your moving!
Also See: Why People Move to Another State or City
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