Which state is officially my tax residence? Confused about state residency for taxes

Wait, so I would need to file returns in both Colorado AND Arizona? How would I even figure out how much of my income was earned in each state? My paycheck doesn't break that down.

Yes, you'd likely need to file in both states. For your income allocation, you'll need to track the days you worked in each state and divide your annual income proportionally. For example, if you worked 90 days in Arizona out of 260 total working days, roughly 35% of your income would be allocated to Arizona. You should keep a simple calendar or log of which days you're working in which states. Your employer should be able to provide documentation about your work locations if needed. Most tax software programs have multi-state capabilities that will help you calculate these allocations properly.

That sounds helpful, but did it actually work for determining legal residency? Like how did it know which state was your home base vs just where you worked?

Does it work for independent contractors too? I'm a traveling consultant and figuring out multiple state taxes is a nightmare, but I don't have traditional W-2s since I'm 1099.

It absolutely helped determine legal residency! The tool asked me questions about my driver's license, voter registration, property ownership, and where I spent most of my time - all the factors that states consider when determining domicile. It then provided a clear analysis showing which state had the strongest case as my tax residence. For independent contractors, yes it definitely works! I have a friend who's a 1099 consultant who uses it. You can upload your 1099 forms and client information, and the system helps you track income sources by state and determine filing requirements for each state where you worked.

Wait, I don't understand - how does this service get through when regular people can't? Do they have some special connection to the tax offices?

Sounds like a scam. No way they can magically get through phone systems designed to make you wait. What's their secret, paying off government workers?

They don't have any special connection - they use automated technology that navigates phone trees and waits on hold for you. It's basically like having someone call repeatedly and wait through the hold times so you don't have to. Once they reach a real person, they connect you immediately. No, definitely not a scam. They don't have any special relationship with government offices or tax departments. They simply have systems that can stay on hold indefinitely, cycling through the process until they reach a representative. There's no paying off anyone - it's just persistence and technology handling the frustrating wait times instead of you having to do it yourself.

Thanks, I had no idea about reciprocity agreements. Do you know if Colorado has those with either Washington or Arizona? And what exactly counts as a "permanent place of abode" - would staying with my brother count?

Colorado doesn't have reciprocity agreements with Washington or Arizona, unfortunately. Reciprocity is more common among neighboring states in the Midwest and East Coast. Regarding "permanent place of abode" - this varies by state, but generally staying with a family member temporarily wouldn't qualify. However, if you have your own dedicated room that you maintain year-round, some states might consider that as evidence of residency. For Arizona specifically, they look at whether you have a residence available for your use year-round, even if you're not physically present. Since you stay with your brother only occasionally, it likely wouldn't trigger their residency rules unless you have other substantial connections to Arizona.

This! I got hit with an unexpected B&O tax bill because I didn't realize my freelance work counted even though I was only temporarily in Washington. Make sure you're tracking what type of work you're doing in each location.