Don't Mess With Taxes

Photo by cottonbro studio

April is federal tax filing time. In case it’s slipped by you, Tax Day is next Tuesday, April 15. (Here are some tips if you’re working on your return this weekend.)

For most Americans, this month also is home to state tax filing and paying deadlines.

It’s also when the hubby and I get our annual home appraisal that will determine the next property tax bill we’ll get from Austin and Travis County.

So, like a lot of U.S. residents, this collection confluence always makes me contemplate whether moving to a state with lower taxes — notably lower property and sales taxes, since Texas has no personal income tax — would be worth it.

My annual reflection, which the hubby and I have yet to act on, is the motivation behind this weekend’s Saturday Shout Outs.

Are No Income Tax States Better to Live In? That question is posed, and explored, by Kelley R. Taylor in her piece for Kiplinger magazine. I say explored, not answered, because as Taylor’s story intro notes, there are many factors and types of taxes to consider, no matter which state you live in or move to.

Tax matters are especially important to retirees who live on fixed incomes. Or, if they are relying on investments, who live on incomes that can fluctuate wildly when markets go crazy like they have in the wake of Donald J. Trump’s recent tariff impositions and backtracks.

So the second shout out this weekend goes to a story that examines tax deliberations of older individuals.

Retirees Who Move to Lower-Tax States May Not Save as Much as They Think, writes Debbie Carlson for the Wall Street Journal. As other costs rise, retirees need to think about total spending, notes Carlson.

Carlson’s article also cites an observation by Mark Hammrick, senior economic analyst at Bankrate in Washington, D.C., who points to the firm’s research showing that rising shelter costs may make relocating difficult, and retirees “could run the risk of totally mitigating any tax savings with respect to exposure to state taxes.”

So, as has been the end result every year so far, the hubby and I, who are getting older, are opting for now to stay put in suburban Austin, Texas.

Part of the reasons why the hubby and I have, so far, opted to maintain our current abode (and taxing jurisdictions) are the same as those noted in this weekend’s Saturday Shout Out items.

But the main one is that the only thing I hate more than paying taxes is moving!

Here’s to a pleasant weekend (or longer) for you, regardless of the tax situations where you live.

You also might find these items of interest:

• Tax-related relocations within the United States
• Popular home-related tax benefits already in the tax code
• Property taxes have increased in 48 of 50 largest U.S. cities

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