Residency rules vary from state to state. For example, if you spend more than a certain number of days in some states, you're considered a resident even if you were not living in the state for very long.
It's best to check with your state Department of Revenue for specific residency rules, especially as they apply to your particular situation. In the meantime, use the following examples as a general guideline.
Resident examples
Generally, you're a resident of a state if you don't intend to be there temporarily. It's where home is—where you come back to after being away on vacation, on a business trip, or at school.
Examples
- You live in Idaho. Every November, you go to Arizona for the winter and return to Idaho in April. You're an Idaho resident.
- You're a student at the University of Minnesota, originally from Indiana. After graduation, you plan to move back to Indiana. You're an Indiana resident.
- You quit your East Coast job and moved to New Mexico. You're not sure you'll stay there, but for now, it's your home. You're a New Mexico resident.
Nonresident examples
For tax purposes, you are a nonresident of a state if you temporarily worked there (with no intention of making it your home) or you received income from sources in that state, such as rental property.
Examples
- You live in Colorado and work during the winter as a ski guide. In summer, you work in neighboring Utah.
- You'll need to file a Utah nonresident return, in addition to your Colorado return, so you can report your summer income to Utah.
- You live in California and own a rental in Arizona.
- You'll need to file an Arizona nonresident return, in addition to your California return, so you can report your rental income to Arizona.
- You live in New York and you just became the beneficiary of a Connecticut farm, which continues to earn income.
- You’ll need to file a Connecticut nonresident return, in addition to your New York return, so you can report your beneficiary income to Connecticut.
Tip: In general, you only need to consider income you earned by physically working out of state, or money generated by out-of-state property or sales. You wouldn't need to file a nonresident return to report interest from an out-of-state bank or if your employer's headquarters is in a different state.
Part-year resident examples
You are a part-year resident of a state if your permanent home is located there for a portion of the tax year, for example, if you move from one state to another.
Example
You moved to Georgia from Arkansas. Georgia is your new home and you don't intend to move back to Arkansas. For the tax year in which you moved, you'd be a part-year resident of both Arkansas and Georgia and will file part-year returns in both states. Next year, assuming you're still in Georgia, you'll just file a resident Georgia return.
Active-duty military
Your Home of Record (the state you enlisted in) is also your State of Legal Residency (SLR) no matter where you're stationed, unless you submitted paperwork to change your SLR to somewhere else. There are also rules for military spouses.
