Snowbirds - Which state do you claim residency?

[Michael 61]

Buying in TV very, very soon. At this point, I am planning on splitting my time evenly in Colorado, though that could eventually change. Question - do you keep you drivers license, voting registration, and pay state taxes still in your non-Florida sate, or have you declared Florida as your primary residence?

[retiredguy123]

It is usually better to become a Florida resident to avoid the state income tax in another state. Another advantage could be the Florida homestead exemption to lower your property tax.

[Laker14]

It is usually better to become a Florida resident to avoid the state income tax in another state. Another advantage could be the Florida homestead exemption to lower your property tax.

exactly. I spend 7 months in Florida and 5 in NY State. I am a Florida resident for the reasons explained by retiredguy,above.

[Babubhat]

Buying in TV very, very soon. At this point, I am planning on splitting my time evenly in Colorado, though that could eventually change. Question - do you keep you drivers license, voting registration, and pay state taxes still in your non-Florida sate, or have you declared Florida as your primary residence?

Check the Colorado state audit manual to insure compliance with requirements. Avoid a nasty surprise in the future

Individual Income Tax Guidance Publications | Department of Revenue - Taxation (https://tax.colorado.gov/individual-income-tax-guidance-publications)

Income Tax Topic: Part-Year Residents & Nonresidents | Department of Revenue - Taxation (https://tax.colorado.gov/income-tax-topics-part-year-residents-nonresidents)

[thelegges]

Which ever home has the highest taxes, is where you might want to consider residency

[Laker14]

Which ever home has the highest taxes, is where you might want to consider residency

huh?

[thelegges]

huh?

Property taxes are much higher in some states, than Florida. So worth while to stay in Florida for 4-5 months as a secondary vacation home.
Paying State income tax didn’t even come close to make up for the how much higher property tax was on northern homes. Plus many not a fan of the heat, so 4-5 months for many in Florida winter and north for summer, fall.

[Hape2Bhr]

property taxes are much higher in some states, than florida. So worth while to stay in florida for 4-5 months as a secondary vacation home.
Paying state income tax didn’t even come close to make up for the how much higher property tax was on northern homes. Plus many not a fan of the heat, so 4-5 months for many in florida winter and north for summer, fall.

huh?

[Garywt]

Property taxes are much higher in some states, than Florida. So worth while to stay in Florida for 4-5 months as a secondary vacation home.
Paying State income tax didn’t even come close to make up for the how much higher property tax was on northern homes. Plus many not a fan of the heat, so 4-5 months for many in Florida winter and north for summer, fall.

Not sure why it matters where the higher taxes are, you have to pay both and you can claim both on taxes so it doesn’t matter.

[Garywt]

We are in Mass more than Florida so we haven’t changed anything.

[Laker14]

as others have stated, you have to pay the property tax whether or not you are a resident of the state, if indeed, you own property in the state. If one state, such as Florida, offers a Homestead advantage, and the other state does not, then it is advantageous to claim the Homesteading state as your state of residence. That is the case between Florida and NY. There is no Homestead advantage in NY.
On top of that, as a resident of Florida, as long as I don't stay more than 180 in NY, (or it might be 184, it doesn't matter because I don't come close) I don't pay income tax to NY State. BTW, NY State does NOT tax Social Security, and if you draw from a pension or IRA, you get a 20K exclusion, as does your spouse as long as they are drawing from their own separate pension or IRA, and approximately a 16K Married Filing Jointly Standard Deduction, so it probably doesn't work out to a huge savings for us, but it's still better to have it than give it to NY.

[Lyn Wagner]

One thing you might want to consider, if you should need a nursing home some day and your not private pay you will be stuck in the state you call home. Is it near your children or family so they can come visit you? Thats why i still call NY my home because it is near my family and grand children whom i may not see often if I’m a fl resident. Food for thought.

[dewilson58]

WOW, some of these posters' "logic" is very scary.

It's a financial decision, do the financial comparison.
If you are not confident with doing this..........spend a couple hundred dollars and have a CPA do it.

There MAY BE non-financial reasons............but none have been posted yet.
The nursing home post............there are ways around what was posted.

Good Luck.

[JanaR]

Find out how much declaring Homestead in your area will reduce your taxes and compare that with here. Homestead doesn’t reduce your taxes here as much as it does in other states.

[mkjelenbaas]

Buying in TV very, very soon. At this point, I am planning on splitting my time evenly in Colorado, though that could eventually change. Question - do you keep you drivers license, voting registration, and pay state taxes still in your non-Florida sate, or have you declared Florida as your primary residence?
About the residence - what did your tax man say when you called him? Best to get info from the “horses mouth”!!!

[Ohiogirl]

As a couple of people mentioned, there are many reasons for declaring/maintaining residency. Different states have different homestead property/and income tax laws. And some states have personal property taxes when licensing cars as well. You just have to do your homework and do what is best for your particular situation.

And tax "man"? Really?

It's sort of like "when should you take you social security benefit?" It differs - one person's situation is not like another's.

[RiderOnTheStorm]

Which ever home has the highest taxes, is where you might want to consider residency

You need to consider more than just property taxes, namely the benefit of Florida's zero state income tax. Those with higher incomes are likely to benefit more by becoming Florida residents, even if their out-of-state homes have much higher property taxes relative to their Florida home.
Also, while Florida welcomes new residents with little or now challenge, you are most likely to encounter difficulty from the state you are leaving which doesn't want to see the loss of your state income tax. The higher your income the more likely your tax return will be audited. Keep good receipts for all of your purchases, and not just things like utility bills which don't prove your your presence in Florida.

[RiderOnTheStorm]

WOW, some of these posters' "logic" is very scary.

It's a financial decision, do the financial comparison.
If you are not confident with doing this..........spend a couple hundred dollars and have a CPA do it.

There MAY BE non-financial reasons............but none have been posted yet.
The nursing home post............there are ways around what was posted.

Good Luck.

Absolutely, 100% right - it is largely a financial decision. Hire the CPA if you are uncomfortable with the math. Money very well spent.

[ElDiabloJoe]

For the sake of these two comparisons, property tax is moot - since it has to be paid on houses regardless of where they are located. The only way around this is to have a much smaller (townhouse/condo) in one state versus a lake house, mansion, or estate in another state.

Florida vs Tennessee: Both states have no state income tax. Florida has higher property tax. Tennessee has no homestead exemption. Car insurance / registration is cheaper in TN.
SOLUTION: One spouse becomes a FL resident, and obtains a FL driver's license. Claim the homestead exemption. The other spouse remains a TN resident and registers all vehicles through that address.

WIN-WIN. Tie. Takes advantage of maximum savings from each state.

Florida vs California: CA has 10-14% state income tax. CA also has phenomenally high vehicle registration and insurance costs. CA's vehicle reg is on a declining scale based on value and age of vehicle. My then 13-year old pickup truck still cost $171/year. A new car of approximately $65,000 costs approximately $800/year. Claiming FL is a huge raise just walking in the door. CA sales tax in my old county is 7.75% versus 6% in FL. That's 1.75% more! Not a ton, until you go to buy a car, or golf cart, or you enjoy stocking up for the year at Costco.

If you maintain residences in CA, they will do everything, including subpoena where your doctor visits are and where you spend money (credit card and bank statements) to auto-tax you. It is up to YOU to sue and beat them to prove you are not a CA resident. SOLUTION: Ditch California as hard and as fast as humanly possible. Sell any property there. Leave no traces for the draconian Board of Equalization to get their tentacles into you. If you visit there, pay for everything in cash - leave no credit card trail. Move to another tax-friendly state if you do not want to be in Florida full-time. Submit the DL 142 form (https://www.dmv.ca.gov/portal/uploads/2020/05/dl142-1.pdf). Make sure to put reason as: MOVED OUT OF STATE PERMANENTLY. Keep a copy. In fact, I'd sent it certified or return receipt requested.

WINNER: Florida

[MrFlorida]

Make your residency in the state that you spend most of your time.

[Nell57]

It’s great that you can keep properties in two states.
At the moment my only investments that are going UP in value are my homes.
My son lives in Arvada….so I’ve seen Colorado’s appreciation over the years. Going there next week .
I changed residency from OH to FL.
As others have commented…just crunch the numbers.

[MidWestIA]

Villages mainly NY, NJ I'm surprised you are not looking at Sun City by Austin we are in Denver now hearing CO is full of TX people.

We lived in Frisco last year awesome people there

Buying in TV very, very soon. At this point, I am planning on splitting my time evenly in Colorado, though that could eventually change. Question - do you keep you drivers license, voting registration, and pay state taxes still in your non-Florida sate, or have you declared Florida as your primary residence?

[cj1040]

Buying in TV very, very soon. At this point, I am planning on splitting my time evenly in Colorado, though that could eventually change. Question - do you keep you drivers license, voting registration, and pay state taxes still in your non-Florida sate, or have you declared Florida as your primary residence?

Go for FL...no state tax return and no estate taxes. Stay 6 mos and 1 day. Change your car, bank account etc. File in the office by the DMV so you can get the Homestead tax exemption too. So much better than NY and many other states to be a FL resident

[Rich42]

Most states have laws requiring your residency designation to be that state where you spend the majority of days in the year. It’s pretty straightforward and that doesn’t give you a lot of options as to which to choose.

[RICH1]

After visiting Colorado , try to remember to bring back some of that Recreational Moon Cabbage and drop off two “ Lids” at my house.. that skunk weed is a lot more potent nowadays and can make a person Question what State they are really in

[UpNorth]

Go for FL...no state tax return and no estate taxes. Stay 6 mos and 1 day. Change your car, bank account etc. File in the office by the DMV so you can get the Homestead tax exemption too. So much better than NY and many other states to be a FL resident

+++ Yes, all of the above! But I wish I could stay up north for 7 or 8 months, since Spring, Summer and Fall are great. Just hate the cold and snow of Winter. Enjoy the best of both worlds if you can.

[Ski Bum]

Best just to be honest. If you work a couple of days in one state, that will cause problems. If you get audited, they can ask for cell phone and credit card records to prove where you were.

[Haggar]

Most states have laws requiring your residency designation to be that state where you spend the majority of days in the year. It’s pretty straightforward and that doesn’t give you a lot of options as to which to choose.

Considerations:

Homestead tax savings-exemptions differ, tax rates differ - you need to do the math
Medical insurance - if you change your residency you may have to change your insurance.
Car insurance rates based upon residency or tax spent.
How your current state taxes part-year residents- does it tax based upon days, income derived within the state only - as examples.

If you trying to change residency yes you have to change your state your driver's license and voter registration is in.

As a "taxman" I get these questions a lot.

[JMintzer]

And tax "man"? Really?

Ask George Harrison...

[Deden]

In NY every county has different tax deductions, this includes Veterans.

[Lillypoo]

Also if you plan to eventually sell one home,if it is not your primary residence you will pay capital gains on sale. You must live as a resident 2 out of last 5 years to skip capital gains on $500,000 as a couple,$250,000 as a single. See accountant before you switch to Florida residency.

[jpvillager]

Florida does a better job of protecting you assets and retirement than many states.

[Aces4]

We kept our residence in our home state. We love our home state and pay the taxes for which we are responsible there to support and uphold it.

We enjoy Florida but aren’t in love with it and the crowding that’s happened in the last 18 years since we began coming to The Villages is a big turnoff for us. No need to jump all over me. If we all loved the same square inch of dirt, the world would be a mess.

We also find that even with a state tax, we can live less expensively in our home state. Florida has a beauty of it’s own, just has to be in your wheelhouse.

[chicksinger]

Buying in TV very, very soon. At this point, I am planning on splitting my time evenly in Colorado, though that could eventually change. Question - do you keep you drivers license, voting registration, and pay state taxes still in your non-Florida sate, or have you declared Florida as your primary residence?

In terms of finance, Florida has no state tax or Colorado's "proud to be there" tax lol. Taxes are higher in Colorado as memory serves....we came down here from there and live here permanently, though I go back every so often to see family and friends and former students. In fact, I'm going back in November again for a couple of weeks. I miss the mountains too and my old music studio and students! But I sure don't miss shoveling!

[Ritagoyer]

Buying in TV very, very soon. At this point, I am planning on splitting my time evenly in Colorado, though that could eventually change. Question - do you keep you drivers license, voting registration, and pay state taxes still in your non-Florida sate, or have you declared Florida as your primary residence?
Just remember that if you are in Florida for more then 90 days you need to change your car insurance to Florida

[justjim]

Not sure why it matters where the higher taxes are, you have to pay both and you can claim both on taxes so it doesn’t matter.

Wish that was true (you can if less than 10,000) but one, two or three homes you can only claim $10,000 in property tax when you file your federal income taxes.

[justjim]

Just remember that if you are in Florida for more then 90 days you need to change your car insurance to Florida

It’s true but rather a dumb law that few snowbirds even have any knowledge about.

[retiredguy123]

It’s true but rather a dumb law that few snowbirds even have any knowledge about.
I agree. But, I wonder what would happen if you were involved in a major, expensive accident, and the insurance company could prove that you violated the Florida insurance law.

[biker59]

A lot of factors go into this decision. One of them is tax law in each state: one could be legally a resident of two different states depending on their rules, so check this with your tax preparer. It is rarely a case that, for tax purposes, one gets to choose which state they declare as their residence; it's a matter of counting days and seeing if you meet that test.
As I recall, income from sources such as pension, Social Security (if taxed), interest, capital gains, etc., all go with the location of the taxpayer. Timing may also matter: When I moved from MD, I took my IRA withdrawals after the move to avoid MD tax. Income from real property and other sources that are fixed is taxed in the state of the property; e.g., unemployment paid by a state.
Another, as others have mentioned, is the homestead exemption, which lowers property tax. If you switch to FL you pay lower tax here, but you pay in turn pay higher tax in CO; check the rules there.
A third is the home sale exclusion on Federal taxes. You can exclude up to $250000 of gain ($500000 if filing jointly) if the home that was sold was your primary home for 2 of the preceding 5 years before the sale. If you change residence to FL, that starts the clock on the CO home. So if you don't plan to sell it within 5 years, you start to lose some of the exclusion.
Some things to consider.

[retiredguy123]

A lot of factors go into this decision. One of them is tax law in each state: one could be legally a resident of two different states depending on their rules, so check this with your tax preparer. It is rarely a case that, for tax purposes, one gets to choose which state they declare as their residence; it's a matter of counting days and seeing if you meet that test.
As I recall, income from sources such as pension, Social Security (if taxed), interest, capital gains, etc., all go with the location of the taxpayer. Timing may also matter: When I moved from MD, I took my IRA withdrawals after the move to avoid MD tax. Income from real property and other sources that are fixed is taxed in the state of the property; e.g., unemployment paid by a state.
Another, as others have mentioned, is the homestead exemption, which lowers property tax. If you switch to FL you pay lower tax here, but you pay in turn pay higher tax in CO; check the rules there.
A third is the home sale exclusion on Federal taxes. You can exclude up to $250000 of gain ($500000 if filing jointly) if the home that was sold was your primary home for 2 of the preceding 5 years before the sale. If you change residence to FL, that starts the clock on the CO home. So if you don't plan to sell it within 5 years, you start to lose some of the exclusion.
Some things to consider.
As I understand the exclusion rule, if you move from Colorado to Florida, you would only have 3 years sell the Colorado house and qualify for the 2 out 5 year primary residence rule requirement. And, you either qualify for the entire exclusion or none of it. You cannot get some of it.

[manaboutown]

Remember the Dorrance finding that his estate owed taxes to two very needy greedy states?

"When Campbell Soupmaker John Thompson Dorrance died in 1930 leaving a $100,000,000 estate, two States greedily claimed him as a native son. New Jersey asserted his residence was Cinnaminson Township, N. J.; Pennsylvania protested that he officially lived in Radnor, Pa. First to win out in this long litigation was Pennsylvania which last year received a juicy $14,500,000 slice of inheritance taxes.

Last week when the U. S. Supreme Court refused the harried estate executors a rehearing, implicitly approved was the first double state death-tax payment on record. To Camden rushed New Jersey's Inheritance Tax Bureau Supervisor William D. Kelly to pick up a $15,620,793.45 check from the disconsolate executors. Hastily stuffing it in his vest pocket, he bustled off to Trenton, triumphantly deposited it.

More than ordinarily grateful for this money was New Jersey. For the first time in 50 years the State faced a deficit, $13,000,000. Persistently loud has been the demand for additional taxes for Relief (TIME, May 4). Equally loud has been the Legislature's reluctance to legislate a tax bill. That the Dorrance largess, one-fourth of which was interest on the original amount due, was a beautifully-timed blessing seemed apparent to everyone but State Senator Charles E. Loizeaux. Snapped he: "This is just staving off the evil day. . . . Next year there won't be any Dorrance money.""

From: NEW JERSEY: Soup Relief - TIME (https://content.time.com/time/subscriber/article/0,33009,756285,00.html)

[thelegges]

Just remember that if you are in Florida for more then 90 days you need to change your car insurance to Florida

Applies if you change your residence to Florida, then you have 90 days to change plates, title, and insurance. If you keep your residence in home state, you can travel anywhere you want, without change of car status. My family members are travelers (contacted to work in different states up to 4 months). None of them claim that state as residence, and have never in 15 years changed their car insurance in the state they are working in.

[centralillinois]

Since the majority of my income is made in my home state, I have to pay state income tax on it anyway. Also, my homestead exemption is higher there. You just have to do your research to see which is best for you.

[Pgcacace]

Property taxes are much higher in some states, than Florida. So worth while to stay in Florida for 4-5 months as a secondary vacation home.
Paying State income tax didn’t even come close to make up for the how much higher property tax was on northern homes. Plus many not a fan of the heat, so 4-5 months for many in Florida winter and north for summer, fall.
In CT you had to spend 6 mos. in FL to claim residence and avoid the state income tax in CT. However, that meant you gave up your capital gains exemption when or if you sold your high priced home there. Best to talk w your accountant.

[MrFlorida]

Applies if you change your residence to Florida, then you have 90 days to change plates, title, and insurance. If you keep your residence in home state, you can travel anywhere you want, without change of car status. My family members are travelers (contacted to work in different states up to 4 months). None of them claim that state as residence, and have never in 15 years changed their car insurance in the state they are working in.

Not true, the law says if you reside in Florida for 90 days, you must have Florida auto insurance.

[retiredguy123]

Applies if you change your residence to Florida, then you have 90 days to change plates, title, and insurance. If you keep your residence in home state, you can travel anywhere you want, without change of car status. My family members are travelers (contacted to work in different states up to 4 months). None of them claim that state as residence, and have never in 15 years changed their car insurance in the state they are working in.
Not true. From "floridabar.org",

"Any person who has a car in Florida for more than 90 days during a 365-day period must purchase PIP and property damage liability insurance. The 90 days do not have to be consecutive."

Also, there are many website legal articles about the requirement for a non-Florida resident snowbird to have a Florida auto insurance policy if they use a vehicle in Florida for more than 90 days per year.

[Lisanp@aol.com]

I found "The Florida Domicile Handbook" and "The Official Snowbird's Guide to Becoming a Florida Resident" (both available on Amazon) very helpful in educating myself about this process. Claiming Florida to be your home state is more complicated then just being there for 180 days if you don't want to risk being audited by your previous home state, especially if you are keeping the old residence there. Good luck with the move!

[Kjbatl]

One thing you might want to consider, if you should need a nursing home some day and your not private pay you will be stuck in the state you call home. Is it near your children or family so they can come visit you? Thats why i still call NY my home because it is near my family and grand children whom i may not see often if I’m a fl resident. Food for thought.

I don't believe this is correct. My mother in law was in a facility in Florida under medicare/medicaid and we lived here. We moved to Georgia and we had her moved to Ga. to be close to us, took small amount of work to accomplish, nothing major.

Also, my ex-wife went into a nursing home in Georgia after living there for 3-4 years as a resident. She was under medicare/medicaid. My son had her moved to a facility in Florida to be closer to him in 2019/2020 timeframe.
It takes a bit of paperwork and finding a facility willing to do it, but that should not determine your state of residence as Florida is a much better tax friendly state than most.

[Kristin WS]

I claim FL as my primary residence and my husband claims CO as his. It is MUCH less expensive to license vehicles in FL than CO. Vehicle insurance is about the same.

[MrFlorida]

Not true. From "floridabar.org",

"Any person who has a car in Florida for more than 90 days during a 365-day period must purchase PIP and property damage liability insurance. The 90 days do not have to be consecutive."

Also, there are many website legal articles about the requirement for a non-Florida resident snowbird to have a Florida auto insurance policy if they use a vehicle in Florida for more than 90 days per year.


Correct.

[MrFlorida]

Not true. From "floridabar.org",

"Any person who has a car in Florida for more than 90 days during a 365-day period must purchase PIP and property damage liability insurance. The 90 days do not have to be consecutive."

Also, there are many website legal articles about the requirement for a non-Florida resident snowbird to have a Florida auto insurance policy if they use a vehicle in Florida for more than 90 days per year.

Correct, you must have PIP for Florida in addition to your other state of residence if you are here 90 days in a calendar year.

[llamamama]

Ask your CPA or tax adviser! They know state laws and your situation. That is the only way to know what’s right for you. Everything else is others advice that may not pertain to you and Colorado laws/homestead.

[conman5652@aol.com]

Have u or spouse claim one state each.

[Rodneysblue]

Buying in TV very, very soon. At this point, I am planning on splitting my time evenly in Colorado, though that could eventually change. Question - do you keep you drivers license, voting registration, and pay state taxes still in your non-Florida sate, or have you declared Florida as your primary residence?

The state of confusion