The remote work environment has facilitated the ability for workers to take advantage of newfound freedom. Instead of finding themselves stuck in one location near an office, they can now work from virtually any place in the world. Some are choosing destinations based on family needs, hobbies and personal interests, and the financially savvy are also considering tax benefits.
New York and other high-tax states are cracking down on those who relocate to low or no-tax states like Florida to make the most of these benefits. As such, those thinking of or have recently made such a move are wise to review their situation to ensure they do not find themselves the subject of a residency tax audit. States like New York will look through various factors to determine if the move was legit or just a cover to take advantage of a tax break.
What will the taxing authorities look for during a residency audit?
Primary considerations include where you live and spend most of your time, where your home is located, and where you keep things that are near and dear, like a family pet. The auditors can even look into your voting history to help build their case.
Does where I vote really matter?
The government considers where you vote connected to the address of your home. As such, it is no surprise that when it comes to New York residency tax audits, where you vote matters. Although not a primary factor of consideration, voting history can play an important role during a residency audit.
Three tips to help ensure you pass this portion of the audit include:
- Check requirements. See if your new home state has any voting requirements.
- Register. In Florida, voters can register at the driver’s license office, tax collectors’ office, voter registration office, or online.
- Vote. If you plan to vote, do so in the state you intend as your new home for tax purposes.
The state taxing authority encourages the auditor to consider more than just general elections in November. This means the auditor may also look at participation in the school board and other local elections.
This is just one of many things to review when making a move. The attorneys at Goldburd McCone are familiar with these and related tax matters. They can review your situation and help to reduce the risk you find yourself the subject of a surprise tax bill after making a big move.