income taxes help


Moving to Texas. How do I prove residency for income tax purposes?

I want to make sure that I am able to take advantage of the 'no state income tax' law asap, (coming from Cali), so what do I need to do. We bought a house, so we will have closing escrow documents. Thanks!

Public Comments

  1. Get your driver's license and car registration changed right away. And getting a library card wouldn't hurt. Closing on the house doesn't prove you moved into it.
  2. I think to be a resident of any state you have to have resided there at least 183, so over 6 months of the year. So, if you are planning to live there for the rest of the year, you will be a resident of texas and a non resident of california when you do your taxes if you had any income from cali. Depending on the state requirements for cali, you may or may not be required to file a non-resident state tax of cali for 2008.
  3. unicorn is wrong. The 183 day rule applies when going back and forth. For the year of a permanent relocation, you file as a part-year resident. Also, moving to Texas does automatically exempt you from all state income taxes. If you work in another state, have a business in another state, etc., you can be taxed by that state on the income from that state, even if you live in Texas.
  4. You must register your car and get a TX license within 30 days of taking up TX residency. That's usually sufficient, however NOTHING trumps registering to vote. Register to vote and if there's any question of your domicile, that will stop CA cold. BTW, don't get too excited about TX lack of an income tax! You've had it incredibly easy under Prop 13. Prepare for your property taxes in TX to be at least quadruple what you're accustomed to paying. Prop 13 limits real estate taxes in CA to around 1.25% of FMV when you purchase and limits increases to 2% per year. TX will start around 4% to 5% of FMV and there is little limit in how much they can potentially rise. Unless you're out in some godforsaken hole in the middle of the Big Bend region, the property taxes will take your breath away! TX and Texans like to brag about the lack of an income tax, but they are REALLY quiet about property taxes. And don't put a lot of stock in what the seller paid. The local appraisal district will re-asses the taxable value to the selling price you paid for it. TX law requires property taxes to be based upon FMV of the property and reassessing at sales time is a cheap and quick way for the appraiser to comply with the law.
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