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mark_lin
New Member

NJ state tax for retired expat

I lived and worked in New Jersey in the last 30 years. Now, I plan to retire in Taiwan for the rest of my life full time.   My only income when living in Taiwan will be just withdrawal from IRA and social security.    Do I need to pay NJ state tax?   Do I need to renounce, say, my NJ driver license to actually prove that I no longer live in NJ any more?

1 Best answer

Accepted Solutions
ToddL
New Member

NJ state tax for retired expat

If you cease being a resident of NJ, you do not have to pay NJ state income tax on your retirement income.

It is not really necessary to turn in your NJ driver's license to prove you are no longer a NJ resident - your driver's license is only one factor considered in determining state residency. You just have to take steps to show you no longer live in NJ and do not intend to return to NJ; just moving to Taiwan and establishing legal residency there is sufficient. 

Factors determine the Date You Established Residency: The date you choose as the first day of residency can coincide with one of the following events:

  • You or your spouse arrived in the state or country
  • Your belongings arrived
  • You or your spouse started work
  • You started renting your new place
  • You purchased your new home
  • You or a family member enrolled in school
  • You or your spouse registered to vote
  • You or your spouse applied for a state driver's license

What makes you a resident of a state (or country)? 

Generally, you're a resident of a state (or country) if you intend to either stay there permanently, or return there after a temporary absence. It's where home is – where you come back to after being away on vacation, business trip, overseas or out-of-state employment, or school. Many factors are considered, not the least of which are where you are registered to vote, own homestead property and are licensed to drive.

Residency rules vary from state to state. For example, if you spend more than a certain number of days in some states, you're considered a resident whether it makes sense to you or not. If you have any concerns, check with your State Department of Revenue for specific residency rules, especially as they apply to your particular situation. 

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2 Replies
ToddL
New Member

NJ state tax for retired expat

If you cease being a resident of NJ, you do not have to pay NJ state income tax on your retirement income.

It is not really necessary to turn in your NJ driver's license to prove you are no longer a NJ resident - your driver's license is only one factor considered in determining state residency. You just have to take steps to show you no longer live in NJ and do not intend to return to NJ; just moving to Taiwan and establishing legal residency there is sufficient. 

Factors determine the Date You Established Residency: The date you choose as the first day of residency can coincide with one of the following events:

  • You or your spouse arrived in the state or country
  • Your belongings arrived
  • You or your spouse started work
  • You started renting your new place
  • You purchased your new home
  • You or a family member enrolled in school
  • You or your spouse registered to vote
  • You or your spouse applied for a state driver's license

What makes you a resident of a state (or country)? 

Generally, you're a resident of a state (or country) if you intend to either stay there permanently, or return there after a temporary absence. It's where home is – where you come back to after being away on vacation, business trip, overseas or out-of-state employment, or school. Many factors are considered, not the least of which are where you are registered to vote, own homestead property and are licensed to drive.

Residency rules vary from state to state. For example, if you spend more than a certain number of days in some states, you're considered a resident whether it makes sense to you or not. If you have any concerns, check with your State Department of Revenue for specific residency rules, especially as they apply to your particular situation. 

ToddL
New Member

NJ state tax for retired expat

As an aside, if you vote in NJ, you would likely continue to be a resident of NJ.
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