Tax residency vs. domicile: How to handle state taxes during job relocation

This is actually quite common with relocations. Your accountant is partly right - your husband will likely be considered a part-year resident of both states. For the period January-May, he could be considered a resident of both states simultaneously (domiciled in original state while establishing tax residency in new state). Most states have a "part-year resident" tax return option specifically for situations like yours. Your husband would file as a part-year resident in both states, clearly indicating the date when domicile officially changed (when you sell your house and move). The key is documenting when the permanent move occurs. Keep records of your home sale, moving expenses, utility disconnections/connections, and the date you physically relocated. These establish the official domicile change date. For the overlapping period (Jan-May), you may need to file resident returns in both states, but most states have tax credits for taxes paid to other states to prevent double taxation on the same income.

After struggling with almost the exact same situation (husband relocated for work while I stayed behind to finish the school year with kids), I discovered https://taxr.ai which saved me so much stress! I uploaded our documents and it instantly identified our multi-state residency situation and explained exactly how to file in both states correctly. The tool showed us how to properly allocate income for the part-year residency and identified tax credits we qualified for to avoid double taxation. It even created a customized checklist of documents we needed to keep (moving receipts, home sale papers, etc.) to establish our official domicile change date. What I found most helpful was that it flagged potential audit triggers for our specific situation and showed us exactly what documentation we needed to keep. Seriously worth checking out if you're dealing with this residency vs. domicile confusion.

I tried taxr.ai after seeing it mentioned here and WOW - it actually worked amazingly for my NY to FL move! I was worried because everyone kept telling me how NY would try to keep me as a resident, but the tool gave me a customized "NY Residency Audit Defense Kit" that listed exactly what documents to keep. The system identified that I needed to be extra careful about tracking my days in NY (they have that 183-day rule too) and warned me about keeping my NY healthcare providers since that's something they look at in audits. It even generated a specific timeline for when to change different things - like driver's license first, then voter registration, then banking. For anyone dealing with state residency questions, especially involving high-tax states like NY or CA, this tool is seriously worth checking out. It saved me thousands by making sure I didn't make mistakes that would have kept me paying NY taxes after moving.

If you're having trouble reaching your state tax department for clarification (which I certainly did when going through this!), I recommend using Claimyr: https://claimyr.com to get through to a human at your state's tax office. You can see a demo at https://youtu.be/_kiP6q8DX5c I was on hold for HOURS trying to get clear answers about my multi-state situation before learning about this service. They managed to get me through to an actual tax specialist at my state's department of revenue in under 10 minutes. The representative confirmed exactly what I needed to do for my part-year residency situation. This was invaluable because the rules vary so much between states, and getting official guidance directly from your state tax authority gives you documentation to fall back on if you're ever questioned. Plus, talking to both states' tax departments helped me identify a specific form I needed that wasn't mentioned on either state's website.

I just want to update that I tried the Claimyr service after my skeptical comment above, and I have to admit I was completely wrong. After three failed attempts trying to reach my state's tax department myself (kept getting disconnected after 45+ minute holds), I decided to give it a shot. Within 15 minutes of submitting my request, I got a call connecting me directly to a representative at my state tax office. They answered my domicile vs. residency question immediately and even emailed me the specific publication that covered my situation. The rep confirmed that for my scenario (similar to yours with one spouse relocating first), I needed to maintain clear documentation of when the permanent move occurred and file as part-year residents in both states. She also mentioned that many people make mistakes with this and end up getting notices later, so getting it right the first time saved me a lot of potential headaches. Sorry for being so negative before - this service actually delivered exactly what it promised.

One tip nobody has mentioned: Driver's licenses and vehicle registrations are HUGE for establishing domicile. When my wife and I were in a similar situation (I moved for work 4 months before she could join me), the first thing our tax professional told us was to change these ASAP in the new state. Apparently, during residency audits, states look at things like: - Where your vehicles are registered - Where you're registered to vote - Where you have doctor/dentist appointments - Where you have bank accounts - Where you have religious affiliations (church, temple, etc.) We ended up creating a spreadsheet tracking the dates we changed each of these things to clearly document our "intent" to change domicile. This was super helpful when filing our part-year resident returns.

Just to add a practical note - I went through this exact situation and here's what worked for us: we kept ALL our documentation the same (licenses, voting, etc.) in our original state until the ACTUAL physical move. Then we changed EVERYTHING within 30 days of the move. Our tax advisor said the biggest mistake people make is creating a confusing paper trail by changing some things early and some things late. Consistency is key. The 183-day rule matters, but most states care more about your INTENT and ACTIONS demonstrating where your true domicile is. For tax filing, we did exactly as others suggested - part-year resident returns in both states with the specific move date clearly indicated. Neither state questioned it because our paper trail was clean and consistent.

Don't forget about property tax implications too! Some states have homestead exemptions that only apply to your primary residence. If your husband establishes residency in the new state before you sell your current home, you might lose eligibility for the homestead exemption which could significantly increase your property taxes for those remaining months. We learned this the hard way when my spouse moved ahead of me - our property tax bill suddenly increased by $2,200 because we lost our exemption. Might be worth checking with your county tax assessor about the rules for your specific location.

This is such a timely question! I went through almost the identical situation when my spouse relocated for work in 2023. Here's what I learned from our experience and CPA: The key distinction is between "statutory residency" (based on days/physical presence) and "domiciliary residency" (based on intent and permanent home). Your husband may become a statutory resident of the new state due to the 183-day rule and having an apartment there, but your domicile can remain in your current state until you actually make the permanent move in May. A few critical points: 1. Document EVERYTHING - keep records of when utilities are disconnected/connected, school enrollment changes, the home sale date, and moving expenses 2. Be consistent with your story - don't file as residents of the new state while still claiming homestead exemptions in your current state 3. Consider the timing of your home sale carefully - this is often considered the clearest indicator of when domicile actually changed We ended up filing part-year resident returns in both states with May as our official domicile change date, and neither state questioned it because our documentation was consistent. The small overlap period where we paid taxes to both states was offset by credits for taxes paid to other states. Your accountant's advice sounds reasonable, but make sure they're familiar with both states' specific rules since they can vary significantly!