20 Jun I’m a widow and I moved to N.J. from Florida. What happens to taxes?

Q. I am retired and a widow. I moved from Florida to New Jersey. Will the property taxes of my house in Florida, that is for sale, go up when I fill out my taxes in New Jersey? I am living at a relative’s house right now. My monthly income is just $2,900. And will my Social Security earnings be taxed?
— Widow

A. Welcome to New Jersey.

There are several items to consider.

As most people know, Florida has no state income tax and New Jersey does, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown.

That’s why many New Jersey retirees are fleeing New Jersey and moving to Florida. You are doing the opposite.

Kiely said the fact that you moved from Florida to New Jersey has no bearing on the cost of your Florida income tax.

“Some states do charge non-residents more on their real estate tax then they charge residents for the same property, but not Florida,” he said.

Then, New Jersey does not tax Social Security. It also has a pension and other income exclusion for retirees, Kiely said.

“So, you won’t be paying New Jersey income taxes,” he said. “As far as your federal income taxes goes it depends on how much of your $2,900 monthly income is Social Security. The IRS has a formula for how much of your Social Security will be taxed.”

Kiely offered the formula for a single person: Take your adjusted gross income and subtract Social Security. Then add half of your Social Security.

“If the resulting number is less than $25,000 then none of your Social Security is taxed,” he said. “If the resulting number is between $25,000 and $34,000 then 50% of your Social Security benefits are taxed.”

For a married couple, the cutoff amounts are $32,000 and $44,000.

“If your adjusted gross income plus half your Social Security exceeds $34,000 or $44,000, then 85% of your Social Security is taxed,” he said. “The IRS never taxes more than 85% of your Social Security.”

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This story was originally published in June 2024.

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.