Proving Florida residency: Tips to avoid hefty tax bills for snowbirds

A couple who split their time between New York and Florida found themselves facing a $60,000 New York tax bill. They were unable to prove that Florida was their primary residence.

Richard Ricciardi, an estate planning and real estate attorney with the Your Advocates law firm, explained why so many people choose to move to Florida.

"We like to think it's the weather, but I think, I think taxes do play into it too," said Ricciardi. "What people try to do is they try to move to Florida, they buy a house, and they live here more than six months. And if they claim Florida, they now don't have to pay that substantial tax from the north, the state tax. They only pay their federal down here."

While this strategy can save part-time residents money, Ricciardi warned that it could also lead to complications if you don't know the law.

"Other states hate when you come down here, buy a house, live here more than half a year and stop paying their taxes. And it happens frequently enough where it gets their attention," said Ricciardi. "What people need to realize is it all comes down to proving where you are, what state you're domiciled in."

To legally maintain a primary residence in Florida, individuals must physically reside in the state for at least 183 days per year. This is where keeping solid proof becomes essential.

"They basically take every aspect of your life, and they look at it, and they say, 'Well, where are his doctors? Where are they voting out of? Where are they, you know, living? How many days are they living there?' You know, it really engulfs every[thing]. Are they getting their mail?" said Ricciardi.

Ricciardi advised maintaining a file of receipts, credit card transactions, insurance documents, voter registrations, and other records to avoid tax disputes.

"It's easy to prove where you are right? You use a credit card to buy your coffee in the morning," said Ricciardi. "Use a credit card, don't use cash. All that stuff can be used to show where you are and how many days of the year you're in which spot,"

The key takeaway is to ensure that no location is lived in for more than half a year, unless that location is Florida— only then can you enjoy those cheaper taxes.