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Glenn2021
Level 1

I moved to another state, bought a house and retired. What do I need to know?

 
3 Replies
drc845443
Employee Tax Expert

I moved to another state, bought a house and retired. What do I need to know?

Hi Glenn,

You did not give me specifics regarding the states you moved to/from,  so I am going to answer your question in general terms.

 

Depending on whether the states have personal income taxes or not, you may have a change in your deductions for state income taxes or sales tax deduction. For example, if you moved from a state  where you paid state income taxes to a state that does not have state income taxes (such as FL), then you may experience a decrease in your state income taxes deduction. At the same time you may be able to claim a deduction for sales tax.

 

If both states require you to pay state income tax, you may have to file state income tax returns in each state. Some states also have local income tax filing requirements.

 

As you did not move for a job, you will likely not be able to deduct your moving expenses.

 

You may be able to deduct amounts you spent on property taxes, mortgage interest, mortgage insurance and any points for the new house.

 

As a retiree, if you took withdrawals from your retirement accounts, you will receive a Form 1099-R from your retirement plans. In addition, you may also receive a Form 1099-SSA if you have started receiving social security.  Both incomes need to be reported on your tax return.

 

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Glenn2021
Level 1

I moved to another state, bought a house and retired. What do I need to know?

I moved from Missouri to South Carolina.

drc845443
Employee Tax Expert

I moved to another state, bought a house and retired. What do I need to know?

Both MO and SC are states with state income taxes. Depending on your situation, and the timing of your move, you will likely need to tax returns in both states.

 

SC is retiree friendly - the state does not tax your social security benefits and allows a deduction against your other retirement income. Here is a link to frequently asked questions on SC taxes that you may find helpful:

https://dor.sc.gov/tax/individual-income/faq

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