Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Taxes and unearned income
Old 08-25-2008, 09:57 AM   #1
Recycles dryer sheets
 
Join Date: Sep 2007
Posts: 79
Taxes and unearned income

Talking with a freind of mine this weekend, I mentioned to him I might become a Florida resident because there is no state tax. He said he doesn't pay any tax in Wi. on a 43k SS and retirement income. He said this is unearned income. I am gonna run this buy my accountant, but whats the opionion about this?
__________________

__________________
lynxville is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-25-2008, 10:09 AM   #2
Thinks s/he gets paid by the post
FIRE'd@51's Avatar
 
Join Date: Aug 2006
Posts: 2,322
Don't know about WI specifically, but your friend may well be correct. Most states, but not all, exempt SS from taxation, and some do not tax pensions. A few (PA comes to mind) do not tax IRA withdrawals. So it varies on a state-by-state basis.
__________________

__________________
FIRE'd@51 is offline   Reply With Quote
Old 08-25-2008, 10:24 AM   #3
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Florida has some personal property taxes that may get you if you become a Florida resident. If your goal is to be a resident of a tax friendly state, consider Texas. There is no income tax or personal property tax although the state has an oppressive property tax.

I'm planning on eliminating my home ownership in the state and become a "visitor" of other states. I'll have a mail box in Texas and possibly a very cheap "flop" for when we come back to Houston.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Old 08-25-2008, 10:39 AM   #4
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,134
Quote:
Originally Posted by 2B View Post
If your goal is to be a resident of a tax friendly state, consider Texas. There is no income tax or personal property tax although the state has an oppressive property tax.

I'm planning on eliminating my home ownership in the state and become a "visitor" of other states. I'll have a mail box in Texas and possibly a very cheap "flop" for when we come back to Houston.
2B has it all figured out: Texas is a great place to retire - as long as you don't live there.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 08-25-2008, 11:12 AM   #5
Thinks s/he gets paid by the post
FIRE'd@51's Avatar
 
Join Date: Aug 2006
Posts: 2,322
Quote:
Originally Posted by FIRE'd@51 View Post
Don't know about WI specifically, but your friend may well be correct. Most states, but not all, exempt SS from taxation, and some do not tax pensions. A few (PA comes to mind) do not tax IRA withdrawals. So it varies on a state-by-state basis.
Found the link I was looking for before:

Taxes by State
__________________
FIRE'd@51 is offline   Reply With Quote
Old 08-25-2008, 01:19 PM   #6
Dryer sheet aficionado
 
Join Date: Dec 2005
Posts: 28
Quote:
Originally Posted by 2B View Post
Florida has some personal property taxes that may get you if you become a Florida resident. If your goal is to be a resident of a tax friendly state, consider Texas. There is no income tax or personal property tax although the state has an oppressive property tax.

I'm planning on eliminating my home ownership in the state and become a "visitor" of other states. I'll have a mail box in Texas and possibly a very cheap "flop" for when we come back to Houston.

How do you get a physical address without living in Texas? PO Box type of address?
__________________
DallasFH is offline   Reply With Quote
Old 08-25-2008, 01:37 PM   #7
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,134
Quote:
Originally Posted by DallasFH View Post
How do you get a physical address without living in Texas? PO Box type of address?
This Texas based RV club specializes in it. www.escapees.com
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 08-25-2008, 02:20 PM   #8
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
Yup, Florida has no income tax but they make up for it with property taxes.
__________________
73ss454 is offline   Reply With Quote
Old 08-25-2008, 03:00 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Maybe this will help clarify:

http://www.revenue.wi.gov/taxpro/news/080402.html
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 08-25-2008, 03:02 PM   #10
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,487
Quote:
Florida has some personal property taxes that may get you if you become a Florida resident.
Florida abolished the intangible asset tax - now only property tax and sales tax.
__________________
MichaelB is offline   Reply With Quote
Old 08-25-2008, 03:29 PM   #11
Recycles dryer sheets
mn54's Avatar
 
Join Date: Sep 2007
Location: mpls, mn
Posts: 442
Quote:
Originally Posted by 2B View Post
Florida has some personal property taxes that may get you if you become a Florida resident. If your goal is to be a resident of a tax friendly state, consider Texas. There is no income tax or personal property tax although the state has an oppressive property tax.

I'm planning on eliminating my home ownership in the state and become a "visitor" of other states. I'll have a mail box in Texas and possibly a very cheap "flop" for when we come back to Houston.
It's my understanding you have to be able to verify that you lived in the state for 6 months to claim residency.
__________________
mn54 is offline   Reply With Quote
Old 08-25-2008, 05:54 PM   #12
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Quote:
Originally Posted by mn54 View Post
It's my understanding you have to be able to verify that you lived in the state for 6 months to claim residency.
Personally, I've lived here for over 20 years. If a newcomer shows up and rents an apartment, they have to have a Texas drivers license within 30 days unless they can prove residency somewhere else. Get the Texas drivers license and you're a resident. Once you've done that, the other state has to prove you are really a resident there. It's a big difference and makes you pretty safe unless you are highly visible.

If I become a "wanderer," I can get my mail sent to either a child or a "mail drop." Some mail drops have street addresses. An earlier post has a link for some of the many RV-ers that "live" in Texas while going all around the world.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Old 08-25-2008, 08:45 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,515
Quote:
Originally Posted by mn54 View Post
It's my understanding you have to be able to verify that you lived in the state for 6 months to claim residency.
Which state? Florida? Not true for TX

Audrey
__________________
audreyh1 is offline   Reply With Quote
Old 08-25-2008, 11:49 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,626
I would hardly call the property taxes in TX "oppressive" since home prices in the Houston area are dirt cheap and don't keep up with inflation.
__________________
LOL! is offline   Reply With Quote
Old 08-26-2008, 04:36 AM   #15
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Quote:
Originally Posted by LOL! View Post
I would hardly call the property taxes in TX "oppressive" since home prices in the Houston area are dirt cheap and don't keep up with inflation.
I'll be paying over $7,000 for a $240K house. If I moved to Missouri, I wouldn't pay anywhere near that even if I paid state income tax and property tax on a similar property. Since I plan to not pay state income tax soon, it will be even cheaper.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Old 08-26-2008, 05:59 AM   #16
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,132
Quote:
Originally Posted by REWahoo View Post
2B has it all figured out: Texas is a great place to retire - as long as you don't live there.
Ditto, we'll be moving back in 19 months, using it as a base.
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is online now   Reply With Quote
Old 08-26-2008, 11:40 AM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,515
Since we were already TX residents, we decided to remain so after we retired. It seemed best tax-wise to us anyway. In all my figuring, state income tax on our investment income would dwarf any property taxes we were paying which was around $4K.

Now, of course, living on wheels, we pay no property taxes. Just like 2Bs idea.

We do spend at least 3 months of the year in TX. We prefer the winters there, and we have family there.

Audrey
__________________

__________________
audreyh1 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Income Taxes After ER Retire Soon Life after FIRE 11 01-25-2008 06:28 PM
Book About Income Taxes TromboneAl FIRE and Money 17 01-15-2008 11:09 AM
Shielding income from taxes. modhatter FIRE and Money 26 04-04-2007 10:46 AM
Taxes on income. Can. Q My Dream FIRE and Money 22 11-01-2006 09:54 AM
Are You Still Paying Income Taxes? MetryOp Other topics 4 06-23-2005 12:06 PM

 

 
All times are GMT -6. The time now is 02:27 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.