How to Determine State of Residency for Tax Purposes

Unusual work circumstances can make determining residency for state taxes difficult.
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Work situations often complicate taxes. A company may send an employee across the country for six months to work on a project. Alternately, a taxpayer may live close to a state border and cross it daily for a job. In those situations, you may need to determine in what state you have residency to file the correct state tax forms. States do not observe uniform rules for determining residency and some states do not impose personal income taxes.

Residency Indicators

For tax purposes, where you maintain your home plays a critical role. Your home is the place you live and intend to return to any time you leave the state, such as going across country for a temporary assignment. Other indicators of residency include voter and vehicle registrations, a driver's license and your children's school location. Some states, however, assign a number of days in the state as indicating residency. You also may need to file a non-resident tax form in the state that you worked, as well as a resident tax form in your home state. States maintain websites to guide individuals on their tax status and an accountant also can help clarify the rules governing tax liability.

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