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golfprodad
Returning Member

state tax issue

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?  

 

 

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3 Replies

state tax issue

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.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
golfprodad
Returning Member

state tax issue

what about  income from pension and social security during Jan. feb. and March?

state tax issue

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.

 

 

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

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