Moving

ME25615 — Wed, 28 Jul 2021 16:43:22 GMT

I will be retiring by the end of the year and moving to a different state. I am currently in New York and moving to New Hampshire/Vermont. What do I need to know about taxes and expenses and what is tax deductible.

Re: Moving

Donna F 77 — Wed, 28 Jul 2021 16:49:48 GMT

Congratulations on your retirement! Once you determine which state you will be moving to, you can check out their tax information on their website.

New Hampshire

Vermont

Generally, unless you are active-duty military moving for PCS, you are unable to deduct moving expenses. Please see this link for more information:

Can I Deduct Moving Expenses

Re: Moving

drc845443 — Wed, 28 Jul 2021 17:36:00 GMT

Hello there,

Since you will only be retiring and moving at the end of the year, you will need to file a New York state income tax return as a resident. There should be no significant changes to your tax situation for the current year.

As you are not moving for a job, you will not be able to deduct your moving expenses. Here is a resource that discusses the rules for deducting moving expenses:

https://turbotax.intuit.com/tax-tips/jobs-and-career/guide-to-irs-form-3903-moving-expenses/L6CwmGm3K

If you move to New Hampshire, that state does not have any state income tax on wages. The state does tax income from interest and dividends at a flat rate of 5%, though. There are no local income taxes in any New Hampshire counties or cities. That means next year, you would not need to file a NH state return unless you received more than $2,400 of gross interest and/or dividend income for a single individual or $4,800 of such income if you are married and filing a joint New Hampshire return. In NH, there is no sales tax, estate tax or inheritance tax.

If you move to Vermont, you must file an income tax return in Vermont if your gross income is more than $100. You would have to pay taxes on your social security benefits and retirement plan distributions. In addition Vermont has sales tax and estate tax.

For your Federal tax return, you may experience a decrease in state income tax deductions as New York has higher state income tax rates than both Vermont and NH.

If you buy a house in either state, you may be able to deduct the amounts you spend on mortgage interest, property taxes, points and mortgage insurance premiums.

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Moving

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