Your father's residence or domicile does not make any difference in his federal tax. TurboTax asks the question in order to determine what state tax return(s) he has to file, and whether he files as a resident or nonresident of each state.
Each state has its own rules about who is a resident for income tax purposes. It's not necessarily determined strictly by domicile, although domicile is usually a consideration. Maintaining permanent living quarters is also a consideration in some states. You have to check the definition of a resident for income tax purposes for both your state and the state where your father has his home. Since each state has different rules, it is possible to be considered a resident of more than one state, even though you can have only one domicile. Also note that the definition of a resident for income tax purposes could be different from the definition of a resident for other purposes.
