husband and wife living and working in separate states--VT and PA

Forum|Forum|1 year ago
October 30, 2024
1 reply
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We have two homes: one in PA and one in VT. My husband lives more than half the year in VT and I live more than half the year in PA. We file our federal taxes as married joint. Last year we filed as part-time resident in each state because I could not figure out how to do it differently. My husband's only wages are earned in VT. My only wages are earned through a VT company but I work remotely in PA. Do we need to file our state returns as part-time residents for each state? Or, is there a better way?

mtufaro

Level 7

So this one is a potentially a doozy. I am focusing on your use of the phrase "more than" and the fact that you have homes in both states.

So what makes one a Pennsylvania resident and a Vermont resident?

An individual is considered a resident rather than a part- year resident if that person was physically present in PA for at least 183 days or more and maintained a permanent place of abode in PA at any time during the tax year.

See: Determining Residency - PA Department of Revenue

You qualify as a Vermont resident for that part of the taxable year during which: You are domiciled in Vermont, or. You maintain a permanent home in Vermont, and you are present in Vermont for more than 183 days of the taxable year

See: Resident - Vermont Department of Taxes

PA has a good explanation of what a part-year resident:

A person who moves into or out of PA with the intention of acquiring a new domicile is considered a part-year resident for the part of the tax year the individual maintains a permanent place of abode in PA.

There are two exceptions to this general rule:

An individual is considered a nonresident rather than a part-year resident if that person spent less than 31 days of the year in PA, maintained a permanent place of abode outside PA during the entire tax year and maintained no permanent place of abode in PA at any time during the tax year.
An individual is considered a resident rather than a part- year resident if that person was physically present in PA for at least 183 days or more and maintained a permanent place of abode in PA at any time during the tax year.

I added emphasis to number two to highlight the fact that PA considers you to be a resident if you are there for at least 183 days and have an abode, which apply to your circumstance.

Vermont directs you to the State code, where we find the same definition:

§ 5811 (11) “Residency.”

(A) An individual qualifies for residency in this State for that portion of the taxable year during which:

(i) the individual is domiciled in this State; or

(ii) the individual maintains a permanent place of abode within this State if the individual both maintains a permanent place of abode and is present in this State for more than an aggregate of 183 days of that taxable year.

I would think that you are a full-year PA resident and that your husband is a full-year VT resident. PA specifically states that you cannot be a part-year resident, and it appears that the VT statutes state the same for your husband. I would suggest that as long as the more then half of year applies this is how you proceed.

Thank you for the question @LMC1240

All the best,

Marc T.

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