Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
ME25615
Level 1

Moving

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.

2 Replies
Donna F 77
Employee Tax Expert

Moving

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 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
drc845443
Employee Tax Expert

Moving

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/L6CwmGm3...

 

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.

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic AdsDynamic Ads
Privacy Settings
v