Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
State Tax
Old 02-17-2011, 08:17 PM   #1
Recycles dryer sheets
 
Join Date: Aug 2010
Posts: 358
State Tax

This seems like an easy question, but I don't know the answer. We are in California and our tax rate is about 10%. If after retirement, we move to another state, or even another country, how do we claim that we are no longer residence of California and stop paying its tax?
__________________

__________________
fh2000 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 02-17-2011, 08:23 PM   #2
Thinks s/he gets paid by the post
steelyman's Avatar
 
Join Date: Feb 2011
Location: Triangle
Posts: 3,218
There are certain criteria that I think technically define it. Google can help point you to the right resources. Things like are you physically residing in the other (non-CA) state for more than half the year (183 days), do you have a state license/ID, where is your car registered, do you own property, where do you vote, and so on.
__________________

__________________
steelyman is offline   Reply With Quote
Old 02-17-2011, 10:45 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,405
You would like file a non-resident return for the portion of the year that you were resident and that return would tell them when you were no longer a resident.
__________________
pb4uski is online now   Reply With Quote
Old 02-18-2011, 02:24 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,450
When I left California, I left late enough, the end of Nov in 1999, that I simply claimed California as my residency as 1999 and Hawaii 2000 to avoid the hassles of filing two returns. Be aware that California is extremely aggressive about going after income of former residents. In fact it took a US Supreme court case before California stop trying to tax pensions of former residents who had moved to other states.

Despite not spending a day in California in 2000, they sent me a bill for $25k, for stock options I exercised while in Hawaii in 2000 that were accumulated while working in California. They backed off with the help of my former California CPA.

If at all possible cut all ties to California as soon as possible when moving, sell your real estate, get a new drivers license, and certainly don't vote in California. If that isn't possible and you still have business ties in California, you'll probably save some hassle if you do some research ahead of moving.
__________________
clifp is offline   Reply With Quote
Old 02-18-2011, 07:34 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
 
Join Date: Dec 2008
Posts: 5,873
California is not the only aggressive state. New York and Maryland will go after you with both barrels too, according to acquaintances who've moved to Florida from those states. All the states are desperate for funds, although it seems like they spend more to recover a few bucks than they'd lose by letting it go.

Amethyst
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success to be able to spend your life in your own way. Christopher Morley.
Amethyst is offline   Reply With Quote
Old 02-18-2011, 07:57 AM   #6
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,412
Residency is not well defined. Whether you own property in the state you leave matters. If you earn no income in California and sell your primary residence, you terminate your California residency by establishing it elsewhere - move to another state, 1) establishing an address 2) domiciling your financial accounts, 3) registering to vote, 4) obtaining your driver's license, 5) registering your vehicle

Leaving the country is a bit more challenging, because some states automatically assume (to their convenience) that you remain a permanent resident of that state. You can first relocate to another state, establish residency there, and then leave the US. This is easier when you have family members in the new state with an address you can use as a base. Otherwise, you move abroad and do the same things as mentioned above: financial domicile, drivers license, voting registration. In addition, all US Embassy and Consular offices have a registration file where you can sign up (for notifications and information) - this helps. Patriot Act make establishing an overseas address onerous, but not impossible for financial accounts.

There have been many threads here on this - try searching. One example State Residency and Taxes???html Martha and Kramer are particularly knowledgeable on this.

Some very good threads over at RADDR's site as well. Look for posts by Kramer on both state residency and moving abroad. Here's one Raddr's Early Retirement and Financial Strategy Board :: View topic - State residency
__________________

__________________
MichaelB is online now   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
State tax map Notmuchlonger Life after FIRE 21 08-26-2009 03:47 PM
Your State Tax Burden JPatrick FIRE and Money 29 07-26-2009 03:19 PM
401K and State tax? huutrinon FIRE and Money 6 12-20-2007 03:57 PM
AGI and State Tax Refund jazz4cash FIRE and Money 12 02-14-2007 09:54 AM
Most Tax-friendly State for Retirees......... jazz4cash Life after FIRE 16 11-17-2006 07:30 AM

 

 
All times are GMT -6. The time now is 05:07 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.