Get smart with your money
Today’s top story: Teach your teens about college costs long before they apply. Also in the news: Haggling for vacation souvenirs, getting cheap car insurance for new drivers, and what to do with unexpected money.
Teach Your Teens About College Costs Long Before They Apply
Prepare them for reality.
Save Money on Souvenirs: Learn to Haggle
Make a plan and stick to it.
Getting Cheap Car Insurance for New Drivers
Discounts can add up over time.
What to Do With Unexpected Money
Be methodical.
Today’s top story: How your vacation spending can help fund next year’s trip. Also in the news: How much you’ll really pay for that student loan, the 5 best and 5 worst states for retirement, and what NOT to buy on Amazon Prime Day.
Record Summer Vacation Spending? Pay It Forward to Your Next Trip
Consider a travel rewards card.
How Much You’ll Really Pay for That Student Loan
Interest rates can be shocking.
Here are the 5 best and 5 worst states for retirement
Did yours make the list?
What NOT to buy on Amazon Prime Day
Not all sales are created equal.
Today’s top story: Stocking up for school can be eco-friendly and economical. Also in the news: Why this Southwest Airlines card is a solid choice for budget travelers, how to choose a secured credit card, and the best tip calculator apps.
Stocking up for school can be eco-friendly AND economical
Look for freebies first.
Why This Southwest Card Is a Solid Choice for Budget Travelers
Putting the Companion Pass within reach.
How to Choose a Secured Credit Card
Not all secured cards are created equal.
Best Tip Calculator Apps to Download Now
Make tipping much easier.
Many families struggle to pay college expenses for one or two kids. Certified financial planner Sarah Carlson, mother of two sets of twins, will soon have all four of her children in college at the same time.
The older twins are already there, to be joined soon by the younger two. But years ago, Carlson started teaching her children how to get an affordable education. One of the first steps was making clear what she would contribute.
“I let them know early on what I was comfortable spending and what I wasn’t,” says Carlson, who’s based in Spokane, Washington.
In my latest for the Associated Press, why you need to teach your teen about college costs long before the first application essay is written.
Today’s top story: 5 good times to shop for almost anything. Also in the news: How one woman ditched $36K of debt, how to nag new coworkers to save for retirement, and saving on airline booking fees by buying your ticket at the airport.
5 Good Times to Shop for Almost Anything
Spend a holiday weekend shopping.
How I Ditched Debt: ‘I Just Pretended I Didn’t Have Money’
How one woman paid off $36K of debt.
How to Nag New Coworkers to Save for Retirement
The good kind of nagging.
Save on Airline Booking Fees by Buying Your Ticket at the Airport
The savings can add up when booking a family trip.
Dear Liz: My husband and I will be trying out several different areas after the sale of our Los Angeles area house, which will be some time this summer. What happens if we end up renting in three different states? I’m under the impression that we need to be able to prove that we resided in a particular state for six months and one day in order to say we are residents of that state. Even though my husband has been retired for many years, he still does a small amount of business through a company based in Southern California. Will we be forced to pay California tax even though we are residing elsewhere?
Answer: California, like other higher-tax states, has residency auditors whose specialty is asserting that affluent people who have left the state are still legal residents and thus are subject to its taxes. The audits can be stunningly thorough, looking at everything from the doctors you visit to where your artwork and other valuable possessions are stored.
If audited, you would need to prove that you have a fixed, permanent residence elsewhere and that it’s truly your home. And yes, it’s up to the taxpayer to prove this — there’s no presumption of innocence in tax audits, says tax attorney Mark Klein, chairman of Hodgson Russ LLP in New York City. (New York is another state with notoriously hard-nosed residency auditors.)
Just leaving the state for six months and registering to vote elsewhere typically won’t be enough. You likely would need to spend substantially more time in your new “home” state than in California. Klein, who recently taught a session on establishing residency at the AICPA’s annual ENGAGE conference, tells his clients to spend at least two months in the new place for every month they spend in the old one.
Also, you should “stick the landing,” in Klein’s words. Let’s say you try to establish residency in Nevada but then move to Florida by the time California’s auditors find you. They may well decide that your Nevada stay was temporary and that you were still subject to California taxes during the time you lived in the Silver State.
Escaping the long arm of California’s tax auditors could be tough while you’re still figuring out where to live next. You’d be smart to consult a CPA experienced with California residency audits for advice on how to cut ties to the state cleanly.