A closer look Changing Your State of Residence

In Brief

• For a variety of reasons, including changes in tax laws and the effect of the COVID-19 pandemic on work habits, people have become increasingly interested in changing their state of residency.
• Establishing residence in a new state is possible, but many steps are involved. Failure to complete them properly could cause unwelcome problems, including having your income taxed by both your old and new state of residence. Careful consideration of the many financial and nonfinancial implications of such a change — preferably with your tax and other advisors — is essential.
• In this A Closer Look, we examine some of the most important questions that need to be addressed when contemplating a change in your state of residence.