What happens with my state income taxes when I move?

There are many factors in determining whether or not you will need to file a tax return in any particular state. Where you maintain your permanent residence, or domicile, is just one of those factors. In a year in which you move from one state to another you need to understand how state taxing authorities determine your domicile.

Most states look at where you maintain a domicile or permanent residence in order to determine residency for state income tax purposes.  A taxpayer may only have one domicile, but have more than one home.  Domicile is based on many factors, including your intent, where you register to vote, maintain a driver’s license and vehicle registration, have family ties, etc.  The burden of proof is upon the taxpayer who intends to change domicile.  And sometimes the individual spouses of a married couple are considered residents of different states.

A move from one state to another is generally considered the date that your residency begins or ends in a particular state.  Intent is an important element of this – did you permanently leave one home and establish a new, fixed, and permanent home elsewhere?  Can you prove this with written documentation?

In addition to residency there are other factors that determine whether or not you need to file a state tax return for a particular state. This post is meant to provide general information, and is not a replacement for consulting a CPA regarding your particular circumstances.

About the author

Ken Weingarten, MBA, CFP®

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