09 Jan I moved to Florida. What taxes will I owe to N.J.?

Q. I moved to Florida in October 2022 and I’m renting a house. I plan on selling my New Jersey home come maybe in 2024. What are my tax implications and what should I do to reduce any penalties?
— Feeling warmer now

A. Congratulations on your move.

There are several tax issues to consider.

If you moved to Florida in October of 2022 and you are maintaining your New Jersey home, you will still need to file a New Jersey tax return for 2022, potentially as a part-year resident, said Patricia Daquila, a certified financial planner and certified public accountant with Peapack Private Wealth Management in Summit.

If your intention is to move and live in Florida full-time and become a Florida resident, it can be tricky because you still own your home in New Jersey, she said.

The key test for New Jersey is domicile, which is the place that you would consider your permanent home, she said.

“According to New Jersey, your domicile does not change until you move to a new location with the intention to establish your permanent home there and you abandon your New Jersey domicile, she said. “If Florida is going to be your domicile, then when you move you should make it your priority to change your legal documents such as your driver’s license, your car registrations, voting, doctors, etc.”

You can also file a Florida Declaration of Domicile, Daquila said, This can be filed in the Florida county where you live.

Also, in 2023 and forward, you need to make sure you do not spend more than 183 days in New Jersey in any one year, Daquila said.

If you do not spend more than 183 days and you are domiciled in Florida, then you would not be subject to taxes in New Jersey unless you have New Jersey-sourced income, Daquila said.

However, in the year that you sell your home, you would be subject to New Jersey tax on the sale of your New Jersey home and would need to file a New Jersey non-resident tax return, assuming that you were a Florida resident, Daquila said.

You should consider meeting with a tax advisor who can offer advice based on your specific situation.

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This story was originally published on Jan. 9, 2023.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.