I am 69 years old and married. we live in connecticut but are in the process of buying a condo in Florida with a closing date of March 29, 2021 We plan on changing residency to Florida this month (Feb.) the condo is a cash deal in which some of the money will be coming out of my 401k. My question is will I have to pay Connecticut state tax on the 401k distribution as well as any other connecticut state taxes?
You'll need to sign in or create an account to connect with an expert.
You become a resident of FL on the day you begin living in your new permanent home in FL. Any 401K distribution you receive after that date is not taxable by CT.
Once you are a FL resident, CT can only tax you on CT-source income (example: rental income from a property located in CT). It cannot tax your retirement income.
what about income from pension and social security during Jan. feb. and March?
Retirement income you receive while still a resident of CT is taxable by CT as per CT tax laws.
You remain a resident of CT for tax purposes until the day you establish permanent residency in FL.
For tax year 2021 (which you'll prepare early next year), you'll file a part-year resident tax return for CT. FL, of course, has no state income tax.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
burdickJ29
New Member
DoctorWho
Level 5
KimberlyNGilliam8866
New Member
normalplus
New Member
MartyDC
Level 3