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It's not hard to prove where you live primarily, but who can know how much time you actually spend "back home" visiting family? Many elders may spend extensive time with family in another state, and yet not legally live there. That's what I meant by drones...how else would they know?
On another note, if you're getting investment income from sources in your former state, you are taxed in both states? Maybe I won't move OOS then.
If the resident does not own or rent a property "back home" and does not work, vote or have a driver's license "back home", then it's not an issue.
It is not whether you're receiving investment income from sources in your former state, but whether your sources are directing the income to an address in your new state.
If the resident does not own or rent a property "back home" and does not work, vote or have a driver's license "back home", then it's not an issue.
It is not whether you're receiving investment income from sources in your former state, but whether your sources are directing the income to an address in your new state.
Yeah, look how many of us have investment income from a company head quartered in NY, Mass, Conn, Delaware or Ohio etc etc. Also we have pensions from other states while living in a new state. Count me in on a number of the above. It is important for many reasons to update your data with investment companies concurrent with moving. If you are legit in what you are doing it is rather simple as long as you are complete and timely. Wife and I never got a pension check from Maryland sent to an address there. Folks wanting to draw on investment income may need to create a time period between moving and drawing down money to help their financial company verify everything with sample mailings etc etc etc to both the old and new address. One thing I was concerned about but was never a problem ( so many others in same boat) is that I still have my out of state cell area code. Another interesting thing ( for some ) is that some banks don't change your routing number to your new state. It is always the state you opened up your account in.
I do not have any tax-exempt income. My pension income falls before this state's [Maine] minimum for paying income taxes. So it works out the same as if they had no income taxes.
Because this is a state with income taxes, they do not focus so much on property taxes. like states who have no income taxes.
I would have to think twice before moving to any state that was going to charge me taxes on my income.
But taxes is not the only thing that determine cost of living overall. government has gone more to fees increase more and more as its politically not wise to raise taxes.Even taxes such as sales tax is not that old.But this is about some states moving to tax people after they move.
After you move there there's no guarantee/assurance the state won't enact additional taxes. With the federal government cutting-back on things more and more of the burden which was borne at the federal level will pass to the state/local level ... and it'll be, for most states, almost impossible to avoid increased taxation. So, for me, the "no-tax state" isn't much of a consideration as I ponder moving someplace other than where I'm now at ... in retirement. Thanks.
After you move there there's no guarantee/assurance the state won't enact additional taxes. With the federal government cutting-back on things more and more of the burden which was borne at the federal level will pass to the state/local level ... and it'll be, for most states, almost impossible to avoid increased taxation. So, for me, the "no-tax state" isn't much of a consideration as I ponder moving someplace other than where I'm now at ... in retirement. Thanks.
There is no guarantee that taxes won't rise - other than the fact that each of those states have an election every two years or so. One recent governor proposed a new income tax in Tennessee a few years back. He was soundly defeated in the next election.
Unlike Illinois, most states have two functioning political parties.
There is no guarantee that taxes won't rise - other than the fact that each of those states have an election every two years or so. One recent governor proposed a new income tax in Tennessee a few years back. He was soundly defeated in the next election.
Unlike Illinois, most states have two functioning political parties.
Yup and in NC there is a possibility that the Republican controlled legislature will start taxing Social Security and possibly eliminate/reduce the mortgage interest deduction. However the changes will benefit some and not others as individuals which could be a change in what they thought they were getting as noted by previous posters.
RALEIGH — Seven years ago, Everett Conn retired from a West Virginia school system and moved to North Carolina.
“One of the incentives for moving here is North Carolina didn’t tax Social Security when you got to that age,” he explained.
Now Conn, 66, is worried that will change. The Senate is pushing a bill to impose a state tax on some Social Security income. And like many seniors living on fixed income, Conn and his wife, Walli, are sitting at their Mooresville kitchen table wondering if they will pay more under the tax overhauls being considered in Raleigh. “I like living here, but I don’t find it a very retirement friendly state,” he said in an interview.
Quote:
As Republicans continue to work behind the scenes to strike a tax deal, Social Security is one major sticking points between the House and Senate bills – and a thorny political problem.
Senate leaders, in an unusual step, sent the tax legislation tentatively approved last week back to a committee Wednesday while they negotiate with House lawmakers and Gov. Pat McCrory to find a compromise measure before the end of session.
The Senate bill puts a state tax on Social Security income for some seniors with other sources of income. The House plan doesn’t touch it. And the governor has expressed concerns about the Senate approach.
Read more here: http://www.newsobserver.com/2013/06/19/2976611/bill-that-would-tax-social-security.html#storylink=cpy
Your point about the peril of one party rule( either party) at the state level is excellent and well made, kudos for highlighting it. Also as you noted there will be new elections and as the past Governor of Tennessee found out the new Governor of NC may learn the same lesson etc etc etc.
Tuborg's account of moving from Maryland to North Carolina reminded me of my own retirement to and from the same states. I almost outsmarted myself, though, when I went to closing on the sale of my house in Maryland. I had already changed my driver's licence to North Carolina. As an out-of-state resident I would have had to pay a hefty tax on the sale to Maryland. My agent said not to worry, however, we would say that was done early for convenience. I was careful in all my tax filings to use the following day as my offical change-of-residence. It meant one pension check tax paid to MD, but saved a lot more in real estate sales tax.
Tuborg's account of moving from Maryland to North Carolina reminded me of my own retirement to and from the same states. I almost outsmarted myself, though, when I went to closing on the sale of my house in Maryland. I had already changed my driver's licence to North Carolina. As an out-of-state resident I would have had to pay a hefty tax on the sale to Maryland. My agent said not to worry, however, we would say that was done early for convenience. I was careful in all my tax filings to use the following day as my offical change-of-residence. It meant one pension check tax paid to MD, but saved a lot more in real estate sales tax.
Yup, it can be tricky. We sold and rent while the new house was being built. There was a major difference in settlement cost between the two states.
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