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Archive for Multiple State Taxation

Understanding Multiple State Taxation

Jim Marshall - Multiple State Taxation

We often think that having a home in multiple states is a great idea, and sometimes we contemplate working while traveling between these homes.  In some cases, our jobs take us to multiple locations.  What happens when we work in multiple states throughout the year?

It is important to determine if you are considered domiciled in a particular state.  If so, you will be subject to that state’s income tax rules and regulations.  We tend to think of domicile as where we spend the most amount of our time, however, each state has different rules regarding the terms and conditions of what is considered a domicile.  Your domicile typically is where you have a “true, fixed, and permanent home”.  Your domicile will not change provided you have a home that you consider the place “to which you intend to return whenever absent”. Your domicile can be different from your residence.  Your residence is based upon how much time you spend in a state. These definitions of time that qualify you to be a resident, and therefore subject to taxation, differ from state to state.

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