< Back to IRS

Olivia Evans

How do you determine domicile state for taxes when working in a different state?

I'm looking at spending most of 2025 juggling life between two states. During the work week (Mon-Fri), I'll be staying in State A for my job, but then heading back to State B for weekends. State B is where I consider my actual home - lived there for like 5+ years and definitely plan to move back full-time once my partner lands a job there. In my mind, State B should still be my domicile state since that's my permanent home. But I'm worried because I'll have an address in State A and when I count the days, I'll technically be spending more nights there (5 vs 2 nights per week). Does this matter for tax filing? Will I need to file as a resident in both states? I've always just filed in one state before and don't want to mess this up or end up paying double taxes! Anyone deal with this interstate situation before?

This is a common situation! For tax purposes, your "domicile" is generally considered to be your permanent home - the place you intend to return to after temporary absences. It's more about your long-term intentions than simply counting days. Since you've lived in State B for years and plan to return permanently once your partner finds work there, State B would likely be considered your domicile state. However, you'll almost certainly need to file a tax return in both states. You'll file as a resident in your domicile state (B) and as a nonresident in State A where you're working during the week. Most states have credits for taxes paid to another state to avoid double taxation, but each state has different rules for determining residency and tax liability. The specific states involved matter a lot here.

0 coins

Olivia Evans

•

Thanks for the helpful info! The states involved are actually New York (where I'll be working) and Pennsylvania (my home state). Does that change anything? I've heard NY can be pretty aggressive with taxation.

0 coins

Yes, that definitely matters! New York is indeed quite aggressive with taxation of nonresidents who work there. You'll need to file a New York nonresident return (Form IT-203) reporting your NY-source income. Pennsylvania will likely consider you a full-year resident, so you'll file a PA-40 reporting all your income. Pennsylvania does provide a tax credit for taxes paid to other states, so you won't be double-taxed on the same income. However, since NY has higher tax rates than PA in many brackets, you might end up with some additional tax liability. I'd recommend keeping a detailed log of which days you're in each state, as NY may audit this situation.

0 coins

Aiden Chen

•

I was in a similar situation last year commuting between states for work. Using https://taxr.ai completely saved me! It analyzed my situation and helped determine my proper domicile state, even with my complicated living arrangement. Their system specifically looks at multi-state situations and helps identify the proper tax treatment. The tool actually walked me through all the factors that determine domicile beyond just physical presence - like where my driver's license was, where I was registered to vote, where my car was registered, etc. Turns out those factors matter just as much as where you sleep!

0 coins

Zoey Bianchi

•

How exactly does this work? Does it just ask you questions or do you have to upload documents? I'm between NJ and NY and the tax situation is a nightmare.

0 coins

Sounds interesting but I'm skeptical. Wouldn't a regular tax preparer know all this stuff too? What makes this service better than H&R Block or something?

0 coins

Aiden Chen

•

It works by having you answer questions about your situation, but it's more sophisticated than just a basic questionnaire. It uses AI to analyze the specific case law and tax regulations for your particular states. You can upload documents if you want a more thorough analysis, but it's not required for the basic domicile determination. The difference from regular tax preparers is that it specifically focuses on multi-state situations and gives you documentation to support your position in case of an audit. Many tax preparers don't specialize in multi-state issues and might miss important state-specific rules. It breaks down which factors are most important for your specific states in dispute - for example, NY puts different weight on certain factors than other states do.

0 coins

Zoey Bianchi

•

Just wanted to follow up - I finally tried taxr.ai after seeing it mentioned here. Holy crap, what a lifesaver for my NJ/NY situation! It pointed out that I was making a huge mistake with how I was handling my domicile. The system walked me through a five-factor test that's specific to the NY metro area and showed me exactly which documentation I needed to establish NJ as my domicile. It even generated a personalized report I can keep with my tax records in case I ever get audited. Wish I'd known about this last year when I definitely overpaid my taxes. Thanks for the recommendation!

0 coins

If you end up having issues with the state tax authorities questioning your domicile (especially with NY being involved), you might need to talk directly with someone at the tax department. I spent WEEKS trying to get through to the NY tax department when they questioned my domicile status. Finally used https://claimyr.com and got connected to an actual human at the NY tax department in less than 20 minutes! You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The service actually calls the tax department for you, waits on hold, and then calls you once they have a human on the line. Saved me hours of frustration and I got my domicile issue resolved in a single phone call once I actually reached someone who could help.

0 coins

Grace Johnson

•

How does this actually work though? You're saying they just sit on hold for you? That seems too good to be true. What's the catch?

0 coins

Riiiight. And I'm sure after they "solve" your problem they ask for your SSN and bank details. No thanks, I'll stay on hold myself rather than fall for a scam.

0 coins

They use an automated system that stays on hold with the tax department while you go about your day. When their system detects that a human has picked up, it calls your phone and connects you directly to the representative. There's no middleman or intermediary - you're talking directly to the government tax department once connected. No, they definitely don't ask for any personal information beyond your phone number to call you back. They don't need your SSN, tax details, or any financial information because they're just connecting the call - they're not representing you or handling your tax matter. It's essentially just a hold-waiting service that creates a three-way call once a human answers at the tax department.

0 coins

I'm eating crow and coming back to say I was completely wrong about Claimyr. After dismissing it as a scam, I was desperate after sitting on hold with the NY tax department for 2+ hours TWICE and getting disconnected both times. Decided I had nothing to lose and tried it. The service worked exactly as described - I went about my day, and about 47 minutes later got a call connecting me directly to an NY tax representative. Got my domicile question sorted out in about 15 minutes once I was actually talking to someone. Never had to provide any sensitive info to the service, and the tax rep I spoke with cleared up my NY/CT domicile confusion immediately. Definitely worth it for the time saved!

0 coins

Jayden Reed

•

Make sure you also look at what counts as a "statutory resident" in the states you're dealing with. In many states, if you maintain a permanent place of abode AND spend more than 183 days there, you can be considered a resident for tax purposes even if it's not your domicile. In NY specifically, they're super strict about this. If you hit that 184th day in NY with a place to stay there, they'll tax you as a resident even if your domicile is elsewhere. Some people literally track their days with GPS to prove where they were!

0 coins

Olivia Evans

•

Whoa I had no idea about the 183 days thing! Is that calendar days or business days? And what counts as a "permanent place of abode"? Like if I'm renting a room would that count?

0 coins

Jayden Reed

•

It's 184 calendar days (not just business days) - and partial days usually count as full days in NY. So if you cross into NY for lunch, that potentially counts as a full NY day. A "permanent place of abode" is usually any place you have regular access to that's suitable for year-round use - so yes, a rented room would typically count. It doesn't need to be owned by you or even paid for by you. If you have a key and regular access, it could qualify. NY is particularly aggressive about auditing people who claim to live elsewhere but work in NY. They've even been known to check your E-ZPass records, cell phone records, and credit card statements to verify your whereabouts! If you're close to that 183-day threshold, document everything.

0 coins

Nora Brooks

•

Something nobody's mentioned yet - check whether your states have a reciprocal tax agreement! Some neighboring states have agreements that let you pay taxes only to your home state even if you work in the other state. For example, PA has agreements with IN, MD, NJ, OH, VA, and WV. But importantly, PA does NOT have one with NY, which is relevant to your situation.

0 coins

Eli Wang

•

Good point! This is why state-specific advice is so important. I'm in Illinois but work in Wisconsin, and they have a reciprocal agreement so I only pay IL taxes despite earning income in WI. Saves me from filing two state returns.

0 coins

IRS AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
20,087 users helped today