Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I was in a similar situation when I retired. I left D.C. on the day that I retired and flew to our new retirement home in no-state-tax Nevada. I did not want to pay the 10% D.C. income tax on my lump-some annual leave payment. In researching the issue beforehand, I found that my employer was going to report the income and withhold the associated taxes based on my state of residence as of my last day at work, March 3rd. We closed on our house in Las Vegas on February 5th, flew out there the weekend of Feb.14th to meet the movers when they arrived, and then I returned to DC to finish out my last 2 weeks. When I returned to DC on the 16th, I submitted paperwork to HR changing my residence from DC to NV. Consequently, that income wasn't reported to DC and I didn't have to pay DC taxes on my annual leave payment.
You may need to do something similar so that you are not a California resident on your last day of employment. If you don't, and your employer withholds California income taxes from the payment you receive six weeks after you've left the state, and reports that income to the state, the burden will be on you to try to prove to the state that your employer made an error and that that income wasn't "earned" in, and reportable as, California income.
I also believe you would not have to buy but can claim residcency if you rent an apartment so......
You won't have to change your online investment accounts, but you should definitely change your Ca. address and phone that they have on file to your new state. Ca. will fight to tax any little bit of income that they can possibly claim!
This thread is an interesting example of what's wrong with Cali, I can't imagine wanting to be rid of any of the states I have lived in quite this bad! I did some work at Livermore though, and I did look into how many days and/or how many days straight I could work and or be present in La-La-Land without incurring any tax obligation.
Mad Man, you are a genius on "how to retire"! Well done. You ought to write a book.
Interesting, too, that places like DC and Cali, with their high tax "bites", are famous for wasting the money they get.
Yep, I'm leaving...reasons?
1. I can save a huge amount by moving to a no- income tax state.
2. I'm renting a brand new ( not even done yet) apartment with vaulted ceilings, nice view, blah blah, for a fourth of what it would rent for where I live in CA.
3. City I'm moving to has a metro area of 250k w lots to do, a great regional airport with 10 direct flights to LAX, VEGAS, Florida, PHOENIX, etc and flights to all the hubs.
4. Everything costs less than CA.
5. I have family there.
6. I can escape for three months every winter and still be WAY ahead financially.
7. I don't like the socialism that most Californians love.
8. Water problems
9. I can think of more.
Positives of CA:
1. Weather...but I can experience nice weather through traveling worldwide or visiting wonderful CA as a non-resident
Last edited by Burkmere; 07-01-2015 at 05:35 PM..
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
