12. Thinking of Changing Your Residence for Tax Reasons

Many people in the Northeast want to relocate to a low-cost state in order to reduce their living expenses and avoid high taxes. They still however, want the benefits of living in the Northeast that includes the great climate, unlimited entertainment, best doctors etc. Essentially, they want the best of both worlds, low taxes with a great lifestyle.  In order to determine residency, the government looks at several factors such as voter registration, car insurance, licenses, and credit card bills. Most people feel just changing your voter registration is enough, but all you have to do is look at their bank statements and credit card bills and you’ll see that they spend most of their time in the Northeast. The rules regarding residence can be complicated, so plan carefully.