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There's always something!!! grump, grouch, moan. But I thought for Florida you just declared it as your homestead and that's where you'll pay taxes, not back in your home $tate of CT or MA or $ome other tax happy $tate.
There's always something!!! grump, grouch, moan. But I thought for Florida you just declared it as your homestead and that's where you'll pay taxes, not back in your home $tate of CT or MA or $ome other tax happy $tate.
The year we moved from CA to MO, even though our residency in MO was firmly established within two weeks of moving (car and voter registration, home ownership, drivers licenses, etc.) we still had to pay CA income tax for 3/4 of the year as well as MO tax for the last 1/4 on our pensions and my Social Security.
Good old California. I lived there for seven years in the 80's. I remember a couple of years after that, hearing that they intended to come after me when I retired and demand that I pay them income tax on the portion of my pension earned when I worked in CA. Fortunately that didn't last. I think Nevada and a couple of other states passed or considered passing laws forbidding their residents to comply with any such laws. I think the only way they could actually enforce it was if they were California state pensions.
Back to the subject, though, I've heard that it can be difficult to establish residence in tax-free states, especially if you still own property or are part-year residents of your old state. They are very suspicious of "paper" residences established to avoid taxes. I think I heard something about a great uncle of mine doing that back years ago, claiming residence with his sister, my grandmother, in Miami for tax purposes.
The year we moved from CA to MO, even though our residency in MO was firmly established within two weeks of moving (car and voter registration, home ownership, drivers licenses, etc.) we still had to pay CA income tax for 3/4 of the year as well as MO tax for the last 1/4 on our pensions and my Social Security.
Not retired yet, but hubby had to fly out to Missouri from our state (WA, which has no state income tax) and work for a while. He would fly out, stay a couple of weeks, fly back for the weekend, fly back to MO for another couple of weeks, etc. Evidently you're supposed to fly back every XX weeks, but for some reason, his company messed up and kept him a week longer. BOOM!! We had to file a MO tax return that year. We were so mad!!
Good old California. I lived there for seven years in the 80's. I remember a couple of years after that, hearing that they intended to come after me when I retired and demand that I pay them income tax on the portion of my pension earned when I worked in CA. Fortunately that didn't last. I think Nevada and a couple of other states passed or considered passing laws forbidding their residents to comply with any such laws. I think the only way they could actually enforce it was if they were California state pensions.
Back to the subject, though, I've heard that it can be difficult to establish residence in tax-free states, especially if you still own property or are part-year residents of your old state. They are very suspicious of "paper" residences established to avoid taxes. I think I heard something about a great uncle of mine doing that back years ago, claiming residence with his sister, my grandmother, in Miami for tax purposes.
It was called a "source tax" which, as CA state retirees, would have required us to continue to pay tax to CA even though we no longer lived there. Thankfully, the U.S. Supreme Court struck it down as unconstitutional as it was nothing less than taxation without representation for non-residents. As it turns out at our ages and between our government pensions and Social Security, we pay no state tax here, whatsoever. I was thinking of feeling guilty (for a moment) until I considered that no part of our income comes from MO yet most of our spending goes to it.
When I started posting on this board a couple of months back I was 100% convinced we would retire ABNY - Anywhere But New York. We're taxed and tolled coming and going. But after reading so many other posts from around the country my wife and I realize that everything we love or love to to do is in NY. We're in a nice town just over 2 hours by car or train in to Manhattan. We're 3 hours from Boston, 5-6 to the coast of Maine which we love. We have shopping and healthcare minutes away. The weather is not hot in the summer, beautiful in the spring and summer and winters in our part of the state are not nearly as bad as Western or Central NY. Most importantly, I expect our kids career paths will probably keep them in NY too. We're lucky to have a very good 401K and a pension plan between us. Albany is already licking their chops but they have to wait a few more years. I really appreciate reading everyone else's posts because it helps paint a clearer picture of other states.
Seems like this article is focused on "The perils that could follow you from your previous high tax state, that doesn't want to lose your tax dollars." It doesn't really say anything about the advantages of moving to and living in a 'no state income tax' state. But, the headline "The advantages of not paying state income taxes" is probably too obvious and doesn't provide enough of a 'reader hook.'
Sounds like the person who wrote that article just discovered tax laws. The headline is misleading.
If you MOVE to a no tax state, or any other state, then, to me, that means you establish your permanent residence in that state.
Of course, once you MOVE to a new state, your income is allocable according to the tax laws. It is not really all that complicated. You lived in NY for five months, and Montanna for seven months, you pay NY for five months, and Montanna for seven months. You have other income which, for whatever reason, is allocable to another state, you allocate it.
It isn't like you are being blindsided. Generally speaking, if you move to a no income tax state, you pay no income taxes as compared with a state which has an income tax. It is pretty straight forward.
The author thinks they have just discovered fire...when in reality they have disocvered what it looks like to be a public idjit.
NY State isn't all that bad for retirees...I think they have a $20,000 deduction on all pensions and retirement income and they don't tax social security. $20k is alot more than most other states.
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