What Is Required to Be a Legal Resident of Florida
Sometimes people want to establish a residence in Florida to avoid income taxes from another state. Because Florida does not charge income tax, Florida has no legal requirement as to whether or not you are a Florida resident. The majority of states have what`s called a 183-day rule, which basically means that the state taxes you as a resident if you own a home there and spend at least 183 days a year (essentially six months) in the state. (Some states require more days in the state to be considered residents.) Days don`t have to be consecutive, and even part of a day can be considered a whole day. Why it matters If enough income is at stake, ambiguous residency may prompt the tax authorities of the previous state to initiate a residency investigation or home check. The flow of money is what arouses the interest of the tax authorities. Events that typically trigger an application include divorce, death, sale of a home or business. In such cases, the burden of proof is generally on the taxpayer to prove that he has renounced his former residence and should therefore not be taxed in the former State. Defending a residency application can cost you or your heirs a lot of time and money. Therefore, it is important to plan well and consult with competent advisors in Florida and the previous state of residence to ensure that your home planning achieves its goals. Many people from across the country who have current or potential legal issues are interested in moving to Florida to take advantage of Florida property protection and other property protection laws. It`s never too late to move to Florida to protect yourself from liability.
Debtors can legally become Florida residents and protect money invested in a new property in Florida, even after a monetary judgment is registered. Second, Florida does not levy estate tax or state estate tax. A number of northern states – Connecticut, Illinois, Maryland, Massachusetts, Minnesota, New Jersey, New York and Pennsylvania, to name a few – will tax your estate or heirs if you die as a resident. However, if you are declared a resident of Florida, these taxes from other states can be avoided. Your family will thank you when you pass. During the winter months, you`ll likely hear a lot about permanent Floridians about the tax benefits of being a full-fledged Florida resident. After all, Florida is one of nine states with no income tax. So if your summer home is located in a high-tax state in the north — New York, New Jersey, Massachusetts, Illinois, Connecticut, Wisconsin, etc. — you could potentially save thousands of dollars each year if you can meet Florida residency requirements. Important: You do not have to complete all of the items on the Florida Residence Checklist above to become a Florida resident. Ultimately, you should consult with a tax advisor in the northern state to learn about the requirements and policies of the tax state to determine whether or not you are a Florida resident.
You must legally sever as many ties as possible with the state you are leaving and demonstrate your intention to make Florida your permanent residence. Only then can you benefit from tax and asset protection policies. New residents must apply for a Florida driver`s license in person at a local office that offers driver`s license services (click here (opens in a new window) to find the nearest office). The fee for an initial Class E license in Florida is $48 (unless you are a veteran, the local tax collector may also charge an additional $6.25 service fee). You will also need to submit certain documents to obtain a REAL ID-compliant driver`s license (the list of documents required for U.S. citizens can be found on the Florida Department of Highway Safety and Motor Vehicles website (opens in a new tab)). The document is available in some counties, or your estate planning attorney in Florida should be able to provide it. To register it, you need some form of legal identification, unless you have previously notarized it. However, to protect assets, there are no established requirements to become a Florida resident. Asset protection is the process of legally structuring assets and income to protect them from creditors. To become a Florida resident and receive asset protection benefits, a Florida court would consider various factors that prove your intention to live in Florida. Once you have obtained your license, you must purchase Florida insurance from an agent licensed to sell insurance in Florida so that you can register your vehicles within 10 days of establishing residence.
fortmyers.floridaweekly.com/articles/should-you-take-steps-to-make-florida-your-domicile/ Similarly, the submission of the declaration alone is not sufficient to establish residence. The Florida Supreme Court has stated that residence in Florida requires not only the intent expressed in a statement, but also the fact of residence. The bona fide intention to be a resident of Florida must be accompanied by the open deed of residence. The 183-day rule refers to the amount of time a person must live in Florida and be physically present before being considered a Florida resident by a person`s former state of residence. Finally, Florida laws exempt the income of the head of household or head of household. Income may include salary, salary, commission or bonus. A head of household is a person who provides more than 50% of the financial support to a person they have a moral or legal obligation to support (usually an immediate family member). What is home? Many states define residency in an inherently subjective and difficult to prove way.
There is no universal definition of residency, although states and the IRS share a general understanding of its meaning that emphasizes the individual`s intent. Florida considers your legal residency or domicile to be where you establish residency with the current intention of making it your permanent residence. From a Florida perspective, you only need to prove your residency to the real estate appraiser`s office to get the Homestead exemption. The real estate appraiser requires the following proof: If moving your business from the North to Florida is not possible, operating it from Florida may be an option. However, Florida business owners who are deeply immersed in their northern business operations may struggle to find a Florida residence. Even if you run your business from a cabin in Miami Beach, your summer state`s tax inspectors will see significant involvement in running a business in their state as proof of residency in that state. It`s weighed against all the other factors, but this type of evidence can convince a court that you`re not really a Florida resident. The declaration of residence is a voluntary submission.
There is no law requiring an existing or new Florida resident to file a declaration of residency. Failure to file the return does not disqualify you from being a Florida resident. Other states that levy income tax may have laws that require a taxpayer to prove their intention to live in another state (such as Florida) to avoid the application of state income tax. In such a scenario, a declaration of residency may be useful in determining under the laws of the other state that the person is a Florida resident and therefore should not be subject to income tax in the home state. To apply, submit Form DR-501 and all required documents to the real estate appraiser in the Florida County where the property is located. You can also use the form to apply for property tax relief for people with disabilities or blindness, seniors, widows, veterans and first responders. In addition to paying taxes in Florida, take advantage of state tax breaks for residents. For example, if you own a home in Florida, apply for a tax exemption for state property tax. Not only could the assessed value of your home be reduced by up to $50,000, but it`s also further proof of your Florida residency status. It`s a win-win situation! Where you are registered to vote says a lot about where you consider your permanent residence. To be considered a true Florida resident, make sure you register to vote (and actually vote) in Florida.
Tell the State of Florida that you are also a resident. File a “Declaration of Residence” with the clerk of the Florida District Court where you live. (“Domicicle” is a legal term that generally refers to where you want to have your primary and permanent residence.) There is no standard national form you can use. Instead, each county has its own version – for example, click here (opens in a new window) for the Broward County form. It takes time, but settling in residence allows you to enjoy the many benefits the state offers its residents, from wealth protection to income tax exemption. In the meantime, enjoy the many activities Florida has to offer. Remember, the more time you spend in Florida, the easier it is to declare your residency.