Ask Jack: What are the tax consequences for moving out of state after retirement?

Ask Jack Jack Ehnes

Under federal law, if you are not a California resident, you are not subject to California state tax. However, your CalSTRS benefits may be subject to taxes in the state where you live. CalSTRS cannot withhold taxes for another state.

If you move from California to another state and want to discontinue your California tax withholding, you can make the change online using your myCalSTRS account or by completing the Tax Withholding Preference Certificate form available on the Forms & Publications Ordering System (under Most Requested Forms) or by clicking the link provided.

Contact the IRS, the California Franchise Tax Board or a qualified tax adviser for information relevant to your individual situation. For general information on withholding tax from CalSTRS benefits, click the link provided.