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Has anyone put Turbo Tax (or even better, is anyone on this board a CPA or similar?) and has done some study as to which State is better for retirees taxwise: South Carolina or Georgia? I am wondering if you moved between, say, Hilton Head, SC, and Savannah, Ga., where would the best tax breaks exist? Anyone have any idea?
hard to compare with just turbo as each situation is different... certain states have other taxes which arent deductable... pa has an inheiratance tax which is high, its seperate from the estate tax , new york dosnt unless your over the federal limit.. ,,, there are differences in sales taxes, transfer taxes on sale of property which are non deductable, taxes on registration of vehicles which if you dont itemize wont show up....
some areas have such low real estate taxes they cant even itemize so even if someone did a comparison between states there is nothing meaningful there for you to compare to.
while say a new york state pensione pension may not be taxible in pennsylvania and my taxes lower you may have other income from other sources and so the fact my pension isnt taxed your income will be.
comparing me to you wouldnt be a good comparison in that case
I know you can request the tax forms from each state by calling their local number. I did this and filled them out to see which state was better tax wise.
just becareful as i said above. alot of taxes are not something that shows up in turbo tax... also if you dont make the dollars to itemize then comparing 2 states may look very much alike but you may be spending thousands extra in taxes that arent deductable and not know it
Great idea calling the State for their tax forms. Also, I think most tax accountant types on the border will know, i.e, they work in Hilton Head, SC, but most will be licensed in Georgia, since Savannah is so close. I live in a border city between two States, and you can find a good number of tax types licensed for both States.
Getting tax information together is so difficult that I may have to resort to seeing a tax type ultimately, however, I am attempting to get enough information together to make a rational decision about moving.
Where is a good CPA from the area when you need one on this board?????
I would also look into property taxes. South Carolina currently assesses property based on the purchase price of the property (Point of Sale Assessment). Be careful because if you are looking at the current owner's tax bill you will be unpleasantly surprised. I would seriously look at Georgia.
Before I moved, I used the website for the state of Wisconsin and found it to be very helpful, they sent me alot of information. The county I was looking at also had a website and they sent me phone books, a question and answer quide, lots of stuff, maps, etc.
Another thing to watch out for~personal property tax. I'm not sure if Ga. has it, but SC has it. They tax your furniture, your car, any camper or boat or anything that you own.
The house might be cheaper in the southern states or so it seems. However there seems to be so many taxes your taxed to death. I wonder do most people just turn away from this realization, when researching these states because the house will be cheaper?
I found this helpful tool a few months ago. I was very surprised that Florida wasn't listed in the top 10 places to retire, although it is described as tax friendly.
[url=http://www.kiplinger.com/tools/retiree_map/]State-by-State Guide to Taxes on Retirees[/url]
A lot depends on your income, since most states do not tax Soc Sec benefits. Georgia has new tax laws and won't be taxing qualified retirement income for retirees 62 and older. (income from IRAs, pensions) Residents 65 and older may qualify for additional deductions from property taxes. (see link)
Disclaimer: I'm not an accountant or a tax attorney - just a friendly poster! LOL I am adding this because of a recent experience on City-Data. This is a forum where people share ideas, not necessarily expert advice.
I think we need to look at all the taxes, including property tax and sales tax. Also utilities cost more in some states than others. I don't live in either of the states mentioned in this thread, but I wanted to post the link, since I found it to be informative.
Last edited by justNancy; 07-23-2012 at 03:46 PM..
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