Final answer:
The statement is false because moving to a new state subjects a person to that state's tax laws, including the obligation to pay estimated taxes on retirement income despite not having filed in that state the previous year.
Step-by-step explanation:
The statement is False. When a person moves to a new state, they might become subject to that state's tax laws from the day they establish residency. If Hattie Smith retired and moved to Oregon after living and working in California, she would be subject to Oregon's tax laws for the income she receives while she is a resident of Oregon, including retirement income.
It is a common misconception that you have to have filed a tax return in a state the prior year in order to be charged interest for failing to pay estimated taxes the current year. Many states, including Oregon, require individuals to make estimated tax payments if they expect to owe tax of a certain amount, and this includes new residents who may not have had to file a state tax return with Oregon the prior year.
Given the complexities of state tax laws, it is advisable for Hattie to consult with a tax professional to ensure she meets all her tax obligations and to understand how retirement income is taxed in Oregon. In doing so, she can avoid potential penalties or interest for underpayment of estimated tax.