Paying quarterly estimated taxes and moving

[melodygr]

I've been paying quarterly estimated taxes in MI on my alimony received (no job).  I just started a job working remotely in MI June 1 to Sept 1 and then I move to Florida.  Should I stop paying the estimated taxes to Michigan at that time?  Will I still have to pay taxes on the alimony once I'm in Florida?

[erinm0717]

Hi Melody!

Here is a great link on alimony: https://www.irs.gov/taxtopics/tc452. You will need to pay the taxes on the alimony for the federal return, but Florida does not have a state tax. You will want to pay estimated taxes to Michigan until you are considered a Florida resident.  Once you are in Florida, you no longer owe tax to Michigan. 

Here is a link on state residency rules: https://ttlc.intuit.com/community/state-taxes/help/what-is-my-state-residency-status/00/26000. Hope this helps!

[gburno]

Hello, and thank you for contacting TurboTax.

Once you move to Florida, you do not need to continue to pay estimated taxes on alimony received to the state of Michigan.

Today, on the federal level,  alimony or separate maintenance payments relating to any divorce or separation agreements dated January 1, 2019, or later are not tax-deductible by the person paying the alimony. The person receiving the alimony does not have to report the alimony payments as income. This is also true for the state of Florida.

https://turbotax.intuit.com/tax-tips/marriage/filing-taxes-after-a-divorce-is-alimony-taxable/L3RVrB...

https://dewittlaw.com/divorce/7033/tax-consequences-of-alimony-from-an-orlando-alimony-attorney/

[RossP88]

You could stop paying MI estimates at that time provided that enough is paid on the income you received while living in the MI. You will still pay taxes on the alimony once you move but only at the federal level. 

[melodygr]

So are the quarterly tax payments for the following quarter?  Meaning I would not have to make the September 15 payment to MI?  Or is it for the previous quarter?  And then I will still need to make the estimated federal payments since my employer is not withholding any extra for the alimony.  But next year I could have them withhold more so I don't have to make the estimated payments at all? 

[erinm0717]

So for each due date, the payments are for the previous quarter.  Here is a link on Michigan estimated taxes: https://www.michigan.gov/taxes/0,4676,7-238-75545_43715-182761--,00.html

Yes, you will still need to make the federal estimated payments.

If they are willing to withhold, you can have them withhold the taxes for you so you don't need to worry about the estimated payments.  To figure out how much to have withheld, you can complete a new W-4 with your company. You can complete a W-4 in TurboTax by going to Other Tax Situations in your return and then going to the W-4 section.