12 Mar For taxes, am I a N.J. or Florida resident?

Q. I had a question about changing residency from New Jersey to Florida. Do you cease being a New Jersey resident who must pay New Jersey income tax if you move to a couple of different rentals in Florida for eight months out of the year, but visit New Jersey for the four summer months and stay in an apartment that you own on the Jersey shore?
— Traveling a lot

A. It’s a great question.

Many people look to Florida as a retirement destination in large part because of taxes.

To be considered a Florida resident, you must make Florida your domicile, said Gerard Papetti, a certified financial planner and certified public accountant with U.S. Financial Services in Fairfield.

Note you can have many residences but only one domicile.

Papetti said your domicile is defined as the place you consider to be your permanent home.

“Domicile can be changed by making the new location your permanent home,” he said. “The ultimate determination for tax purposes will depend in large part on the use of the residence as a home as part of your `lifestyle’ and the taxpayer’s intent.”

The number of days spent in each state is a primary consideration when establishing your domicile, Papetti said.

He said there are many factors that establish a clear and convincing change of domicile.

He said auditors review all of the actions by the taxpayer to determine if a change in domicile has occurred including but not limited to:

• Change of driver’s license, passport, and voter registration address.
• Filing a Florida Declaration of Domicile in the new county of residence.
• Location of primary physician, dentist, and other healthcare providers.
• Social clubs and places of worship.
• Moving “near and dear” items such as furnishings, artwork, pictures.
• Change mailing address for all mail.
• Open a bank account in Florida.
• Notify banks, insurance companies, Social Security Administration, pension plan administrators and any other financial institution that you send or receive money from of your change of address to Florida.
• Use your Florida address for all tax filings.
• Use your Florida address on all stationary.
• If applicable, notify your New Jersey clubs and organizations to change your membership to non-resident status.
• Change all insurance coverage to your Florida address.
• Execute a new last will and testament declaring Florida as your domicile.
• Maintain an accurate log of your time spent in Florida. There are apps on smart phones that can track this. You need to be present in Florida more than you are in any other state.
• If possible, cancel subscription services in New Jersey.

Based on your situation, it seems you will have the time requirement met by spending eight months in Florida and four months in New Jersey, Papetti said.

However, a New Jersey auditor may view your renting multiple residences in Florida as not a permanent home considering you still own a home in New Jersey, he said.

“If you take as many steps noted above as possible, your chances of being considered a New Jersey resident is less likely,” Papetti said. “Unless you have New Jersey source income, such as New Jersey rental real estate income, you will no longer file a New Jersey income tax return the year you declare and change your domicile to Florida.”

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This story was originally published in March 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.