Can You Claim Residency in Two States at the Same Time?

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You can claim full-time residency in two states at the same time, but it should be avoided. If a taxpayer tries to claim dual residency, then the taxpayer will be overcharged by the states. A taxpayer can be a part-time resident in one state and a full-time resident in another at the same time, according to the Internal Revenue Service website. It is recommended that for tax purposes that one state be considered a domicile.

Tip

Under certain circumstances, you can have simultaneous residency in two states, but the tax implications can get a little tricky, and the taxpayer has to prove dual residency status.

Resident vs. Nonresident

A U.S. resident must file federal and state income taxes annually. When filing taxes, a person must claim residency in the state he lives in. Residency is most often the state where you live and have a driver's license in, according to the IRS.

However, for example, some people work in one state and live in another, own homes in two states, rent an apartment in one state and own a home in another or move halfway through the year. This can make filing taxes and choosing a resident state more complicated.

People who work in one state and live in another or are visitors of the state are nonresidents of the state. Nonresidents do not have to pay tax for living in the state, but they may have to pay tax for earning income in the state, depending upon the state laws.

Part-Time Residency Status

Part-time residents are usually people who own homes or rent properties in two separate states or are people who have moved from one state to another during a tax year. If a person has moved to another state during the year, she would have to file two part-year-resident returns. If a person has not spent half a year in a state and does not have a permanent address in a state or a driver's license, he may automatically be considered a part-time resident.

However, when the IRS audits taxpayers, the agency may ask for proof of a person's permanent state residency and part-time residency to verify that the person was only in the state part-time and permanently lives in another state.

Showing Proof of Residence

To prove full-time or permanent residency in a state a person must have a driver's license, voter's registration, be sending children to school in a state, have purchased property in a state or have primary bank accounts in a state. The IRS considers state residency temporary if you have not lived in the state for at least six months. If you rent in one state and own property in another, the state where you rent is considered a temporary residence.

Not Included In Permanent Residence

A person is not a permanent resident of a state if the person is an out-of-state student who lives in a dormitory or a student-owned apartment. Patients in hospitals are also not considered residents, and neither are those who stay in hotels or motels. Members of the military who live in barracks or housing are also exempt from permanent residency in a state. Renting a property for less than six months does not establish permanent residency in a state.

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