Moving to Boynton Beach Offers Premium Tax Benefits
Imagine having year-round access to miles of sandy beaches, championship golf courses and waterfront parks, not to mention great weather. Sound too good to be true? Not if you live in Boynton Beach, Florida. Boynton Beach is a mid-size community located in Palm Beach County. Best of all, residents receive all the great tax benefits that Florida has to offer. This helps to make setting up a residency near the beach very affordable.
Florida Tax Benefits
Florida is one of the few states in America that does not have a state income tax. While you will still have to pay federal income tax, you won’t pay state income tax on your Florida wages, pension or social security benefits.
Another cost savings benefit Floridians receive is no inheritance tax. The Florida State Constitution bans this type of separate taxation, so you will never have to worry about state death tax whether you are planning to inherit an estate someday or leave assets behind for your loved ones.
Florida has what is referred to as a “homestead exemption.” This exempts homeowners from paying property taxes on the first $50,000 value of their property. You must apply for this exemption in order to obtain this special benefit.
According to the Pension Source Tax Act of 1996, it is illegal for another state to try to levy their taxes on you if you live in Florida but receive a pension from another state. However, it is crucial to establish an official residency in Florida. If you do not set up your residency properly, you risk having another state trying to levy their taxes on you. This is especially true if you have a dual residency with another state.
Here are several things you can do to establish residency and ensure you get all the tax benefits you deserve.
Obtain a Florida driver’s license and vehicle registration.
Register to vote in Palm Beach County.
Apply for the Homestead Exemption (if you own property in Florida).
Establish a bank account in Florida and change your direct deposits to this account.
File federal income tax using a Florida address.
Make sure you are physically present in the state for at least 183 days.
File a domicile with the Palm Beach County Clerk of Courts and submit a copy to your previous county tax office.
Herman & Company CPA’s, P.C. can help answer any questions you have about establishing residency in Boynton Beach, Florida. Our team of financial professionals can assist you with everything from tax planning and preparation to estate and retirement planning. We not only will help you save money by minimizing your tax burden, but we will provide professional advice to help you plan for your future.