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Originally Posted by Patents111
Hi, I’m a federal retiree living in Virginia. I plan to sell my house; and sell or re-register all personal property in Florida; and buy and become a full-time Villages resident. My local CPA will file my part-year Va taxes, but Virginia had/has a reputation for seeking taxes from former residents on the theory that their retirement income was the result of living in the state while earning that retirement.
I’m interested in hearing your story of settling up with, and disengaging from, your home state tax collecting system whether Virginia or other, what you used as your transition-to-Florida date, and any advice to avoid pitfalls. Many thanks in advance.
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Usually when you move from a state that has a state income tax, and sell your property that you owned in that state, the former state doesn't try to continue to tax you with their state income tax. If you become a snowbird and keep your property up north, then you have to be much more careful.
For example, in Minnesota, you have to be gone from Minnesota a minimum of six months plus one day. If you are in Minnesota for one minute, it counts as one day. I don't think it counts if you are at an airport in Minnesota where the starting point and destination is not Minnesota, and it shouldn't count in Minnesota if you fly over the Minnesota airspace. But it would count as being in Minnesota if you drive across Minnesota.
In addition to the six months plus one day rule, there are also 26 other residency consideration factors. These are things like your driver's license. The factors include things like, where your vehicle is registered, insured, and stored, and the information you tell your insurance company. Address where mail is received. Where bank accounts are located. Where you are registered to vote, but casting an illegal vote does not count against you! The state could also ask for your location records from your cellphone company.
New York has a department that's dedicated to going after people who left New York. New Jersey is also has a reputation for going after people who leave New Jersey. But California's proposed taxation rules are the most extreme. California's proposed taxation laws would probably be thrown out by the courts if it ever passed legislation. California wanted the right to force you to pay the California state income tax up to 20 years after you move out of California. At first, this tax would only impact multi millionaires. But if it ever passed, that income threshold would likely drop down, so that everyone who leaves California would have to pay the California state income tax, up to 20 years after leaving California.
Make sure that you take the necessary action to reduce the chance that your former state might attempt to force you to continue paying their state income tax, after you moved from their state. You can also file the declaration of domicile document in your Florida county, which is more paperwork to indicate that you are a resident of Florida. The declaration of domicile document fees are a little over $20.
You should also file for homestead in Florida. Homesteading your property will cap the future annual property tax increases, and it will reduce your property's taxable base.