Beware of Hidden Taxes When Choosing a State to Retire
Florida is the most popular state for Americans to retire. From Fort Lauderdale to Panama City Beach, countless people have chosen to spend their golden years in the Sunshine State. With great year-round weather and no state income tax, it makes cents–as in dollars and cents. But the times are changing. Many retirees may not be aware of hidden taxes that come with living in Florida. When it comes time to retire, it pays to do further research on taxes in different states.
Why More Floridians Are Moving to Georgia
There is a new trend among people in Florida. Although the Sunshine State is considered America’s premier retirement destination, more Floridians are discovering better alternatives in Georgia. For example, a couple in Fort Lauderdale can actually save more money on taxes living just outside Atlanta. Property taxes are much cheaper. In some cases, retirees can go from paying $20,000 per year in Fort Lauderdale to just $5,000 by living in a similar sized home in Atlanta. How is this possible? Georgia homeowners do not have to pay taxes for schools. But that’s not all. The first $130,000 of a couple’s retirement income from investments or pensions are also tax exempt, along with their social security income.
The Advantage of No State Income Tax
Aside from its warm climate, Florida’s biggest draw as a retirement destination has been its lack of state income tax. However, there are other states with no individual state income tax, including Washington, Alaska, Wyoming, Texas, South Dakota and Nevada. In addition, Tennessee and New Hampshire implement income tax only for dividends and interest. While the lack of state income tax makes Florida attractive for retirees, there other hidden taxes and fees that are often overlooked.
Hidden Taxes and Fees in Florida
Retirement and taxes can sometimes get complicated, especially when you are trying to decide where to spend the rest of your life. Because there are so many different types of income, it can get confusing on what is taxed. When choosing a state to retire, it is important to find out if whether it places a tax on social security benefits and pensions. There are currently 13 states that tax social security. The majority of states also place a tax on pensions. However, they differ depending on the state. There are also different tax rates placed income earned from investments and rental properties. If you decide to retire in another state, make sure you have permanent residency in that state or else you could end up paying taxes in both states.
A Fort Lauderdale Tax Attorney Can Help
Many retirees have chosen to make Fort Lauderdale their home. But sometimes retired life can get complicated–especially when it comes to taxes. Whether you owe back taxes or face an IRS tax audit, it is important to have an experienced legal professional on your side to resolve any issues. Fort Lauderdale tax attorney Ira Zuckerman has successfully represented many people with complicated tax problems for more than 30 years. He and his legal staff utilize a personable and comprehensive approach to help place each client in the best position to succeed. To learn more, contact the legal team at Zuckerman Law, LLC and schedule a consultation to discuss your case.