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residency audit

Thursday’s need-to-know money news

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Today’s top story: Moving to escape taxes? Make sure it’s a clean break. Also in the news: 4 smart ways to split bills with friends while traveling abroad, 5 auto-buying tips from a former undercover car salesman, and 7 tips for becoming an ethical shopper.

Moving to Escape Taxes? Make Sure It’s a Clean Break
You could face a residency audit.

4 Smart Ways to Split Bills With Friends While Traveling Abroad
Thinking outside the app box.

5 auto-buying tips from a former undercover car salesman
Don’t get taken for a ride.

7 tips for becoming an ethical shopper
Finding companies that align with your values.

Moving to escape taxes? Make it a clean break

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Breaking up can be hard to do if the other party doesn’t want to let you go. People who move out of high-tax states may learn this the hard way — through a residency audit.

States such as New York, California and Illinois use the audits to claim that your recent interstate move was just a tax dodge and that you still owe their state income taxes. Proving you’ve actually moved and plan to make the new place your permanent home — yes, the burden of proof is on you in a residency audit — often requires far more than flashing your new driver’s license or spending a certain number of days outside the old state. In my latest for the Associated Press, how to prepare for a residency audit.