03/31/2021
As a taxpayer, you should proactively consider some of the challenges that you could face. It's always good to be prepared for old problems that could resurface and a set of new issues that could emerge. For personal income tax, some of the most common issues include overlooking or underpaying estimated tax payments, being unable to file state tax returns after moving, and neglecting to file state income tax returns as a nonresident.
It's important to remember that estimates should be deposited quarterly to avoid penalties from overlooked payments. Also, remember when you're moving to another state, you must spend at least 183 days of the year in your new address and maintain a primary residence there. Note that even after you file for a change of address with the postal service, change your voter registration, and get recognized as a resident by your new state, the state that you left is likely to also still treat you as one. Finally, keep in mind that if you have business or rental income in another state, you may be required to file state tax returns as a nonresident. If this income is significant, it can end up producing a large tax bill if you're unprepared.
To avoid these issues and many more, contact us so we can help with your state and local taxation. https://koataxgroup.com/https://koataxgroup.com/https://koataxgroup.com/https://koataxgroup.com/