I'm planning to retire in a couple of months this year and am considering moving to Texas (or another state without state income tax) to save some taxes.
After I moved to Texas, when I withdraw from my IRA account, will I still need to take some withholding for state income tax?
What is the minimum number of days that I need to live in Texas to qualify as a Texas residence for tax purpose?
Will Turbo Tax ask me how many days I have lived in Texas to determine my residency?
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If you are receiving retirement income from a business in your old state but you move to a new state, federal law says that your new state can tax your retirement income, but your old state can't.
Texas will not tax your retirement income.
Texas has no residency requirements for tax purposes other then you need o be "domiciled" there.
How do I indicate residency in Turbo Tax? Where do I enter ask the many days I have lived in Texas?
Thanks!
Your resident state as of 12/31/2023 is asked in the My Info section if using the TurboTax online editions or in the Personal Info section using the TurboTax desktop editions.
You select your resident state from the dropdown. If you lived in another state in 2023 before moving your resident state in 2023 then you indicate you lived in another state. You choose the state you lived in prior to moving and the date you moved to your resident state.
For example:
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