Jumping Jurisdictions – Tax Implications of Moving

During a given year, a person tends to move around from his/her home, due to family and/or business reasons, and ending jumping around from state to state.  So, what does one do on  his/her tax returns, if a person is jumping around from state to state?   It depends if a person is in a given state, as a new resident, or as a person who is in a given state for a temporary basis

To determine if someone is a resident of a given state several factors a taken into account, such as the following factors:

  • Physical presence (amount of time spent in a given state);
  • Residence (whether taxpayer owns or rents a residence in a given state);
  • Employment Relationships that a person has in a given state;
  • Business connections relationships that a person has in a given state;
  • Family location and/or relationships that a person has in a given state
  • Real Estate that a person owns in a given state;
  • Location of bank accounts that a person has in a given state;
  • Where the person has registered to vote and/or actually voted in a given state;
  • What public libraries that a person has a library card;
  • What social clubs and/or organizations a person actively participates;
  • Where motor vehicle registration and/or driver’s license a person has from a given state;
  • Where a person has his/her professional license in a given state; and/or
  • Where a person has professional services (lawyers, doctors, dentists, etc.).

As the California Board of Equalization, which is the California administrative appeals tribunal on California income taxes, commented once:

We are mindful at this juncture that [these] factors serve merely as a guide in . . .determination of residency. Thus, the weight given to any particular factor depends upon the totality of the circumstances [Emphasis Added]. The focus of our examination is to determine where an individual is present for other than a temporary or transitory purpose, not whether or not an individual satisfies a majority, or even a significant number, of the factors. (Appeal of Stephen D. Bragg, 2003-SBE-002, p. 6).

Thus, each factor is not a determination of a person is a resident of a state, but looking at all of these factors as a whole to determine the residential nature of a person in a given state.

So, if you are person who has been jumping from state to state, and need assistance to determine which state is or residency, we would be more than happy to assist you by contacting us at info@kayatax.com