Monday, February 23, 2015

You may owe taxes after moving to Florida.

One of the benefits of moving the Florida is that you don't pay income taxes. However, unless you are careful, you may end up owing taxes to you previous state!  Especially if you are moving out of New York State or California.

If you spend more than 183 days in your old state? They may want to collect income tax! Are you going to move before the 183rd day of the year? if not - plan to pay.

Even if you move before the 183rd day, unless you officially cut your ties to your old state, it can be difficult to prove you relocated. For example, imagine if you move but your house takes four months to sell after you left? 

Here is some advice from CNN Money: As soon as you move, you should change your driver's license, car registrations, voter registration and mailing address for all bills and financial statements. You may also need to file a non-resident return to your old state if you earned any income there.

If it looks like you might still have connections to your old state that extend beyond 183 days? The state may come after you! Still have ties to your old church or some other organization? Watch out! Need to travel back to visit family or close a house sale? Be careful during that first year that you don't appear to exceed 183 days.

In case you have to prove you relocated, keep a meticulous travel log, complete with gas, toll and airline receipts, credit card records and the like.

Their goal will be to show that you primarily spend your time in your old state. Your goal will be to prove them wrong.

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