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Reduce Your Taxes by Moving

As I plan my 'great escape', I am going over all the little minute details that can either make my life easier or give me more time on the road by saving me money to begin with. As a person that has spent a few decades living life, I have accumulated some "stuff". A lot of this will be sold on eBay and CraigsList within the next week, but I will still have sentimental items that I cannot or do not want to part with, so I must keep them someplace.

I live in Massachusetts & my father lives in Alabama, so I plan on stashing my stuff there, but the issue of a mailing address has sparked my interest lately. I found that by "moving" to Alabama from Massachusetts before I leave to travel, I will save myself money on doing my taxes for the IRS.

Alabama Taxes:
Personal Income Taxes
Tax Rate Range: Low - 2.0%; High - 5.0%
Income Brackets: *Lowest - $500; Highest - $3,000
Number of Brackets: 3
Personal Exemptions: Single - $1,500; Married - $3,000; Dependents - $300
Standard Deduction: Single - $2,000; Married filing joint return - $4,000
Medical/Dental Deduction: Limited to excess of 4% of adjusted gross income
Federal Income Tax Deduction: Full

Massachusetts Taxes:
Personal Income Taxes
Tax Rate Range: Flat rate of 5.3% of federal adjusted gross income
Personal Exemptions: Single - $4,125; Married - $8,250;
Dependents - $1,000
Standard Deduction: None
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None


Do a Comparison Yourself:
Taxes By States

Traveling SAVES Money

First things First. Your housing costs, whether it be a mortgage or rent is probably costing you MORE by staying where you are and working a conventional job. The cost of rent for one month in South East Asia can be anywhere from $300 - $500 USD. This can dramatically decrease the amount of money you are expending per month, and essentially SAVING MONEY WHILE YOU TRAVEL.

You CAN SAVE Money when you Travel

Most people's idea of saving money while traveling is to get the BEST deal on airlines or hotel accommodations. This can be a great way to decrease your travel budget, but I plan to show you great tricks and tips of a perpetual traveler on how to actually save money while traveling.