What is Domicile and state residency?
In short
A person's domicile is the state of their permanent home, where they intend to return. States tax residents on all their income and nonresidents only on income from sources in the state.
Key takeaways
- Many states also treat someone as a statutory resident if they keep a home there and spend more than 183 days in the state.
- The state of residence usually gives a credit for tax paid to other states on the same income.
- Changing domicile takes actions such as moving the main home, driver's license and voter registration.
Where it's tested
TCP: Multi-Jurisdictional & International Basics — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A company's only activity in a state is sending sales representatives to solicit orders for tangible goods, which are approved and shipped from outside the state. What protection does Public Law 86-272 provide?