I am starting a new job in Florida this february. It is only a one year assignment. I have already quit my last job, thus have not work in my previous state for the year of 2020. I have relocated here from NJ. My license and car/car insurance are all NJ based. It is a bit of a hassle to change this. However, I do want to take advantage of the tax breaks in florida. I'm living in a corporate owned apartment here in Florida, but the address on my license is my parents home in NJ. As of now, I'm set to come back to NJ at the end of the year, but I may have an assignment somewhere else.
Will i have problems when it comes to filing taxes for 2020? What would I need to do? Am i not eligible for the tax breaks in florida?
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Hassel or not you MUST change your residency starting with the DL and voter's registration to be considered a FL resident.
Unless your assignment lasts for more than one year, it still fits the definition of a "temporary assignment". This means that your state of domicile is New Jersey, which means that New Jersey may tax your income you earn in Florida. However, New Jersey still allows a deduction for unreimbursed employee expenses. A temporary assignment does qualify to deduct employee expenses under the "old rules" (prior to the Tax Cuts and Jobs Act of 2018), which New Jersey still follows. But you still will file your tax return with New Jersey, unless the position becomes permanent and lasts more than a year. So, unfortunately, although Florida will not tax you on your income, New Jersey will still be allowed to do so. (Even if you move your DL and voter's registration, if it is a temporary assignment, NJ can declare you a NJ domiciliary resident and tax you).
You will not get any additional tax breaks for your situation on the Federal Tax return. The TCJA suspended the ability to deduct Unreimbursed Employee Expenses until 2026.
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