What Is My State Residency Status?

a girl in a new state wearing a red flannel finding her way around with map

Typically, you’re considered a resident of the state you consider to be your permanent home. Residency requirements vary from state to state. You can check your state’s department of revenue website for more information to confirm your residency status. 

If your resident state collects income taxes, you must file a tax return for that state. This applies to all states, except the nine states that don’t collect income taxes – Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. 

You may have a unique state tax situation if you did not live and work in the same state all year. These circumstances may require you to file nonresident or part-year state returns. 

Do I need to file a nonresident state return? 

You must file a nonresident return for any state where you earned income but did not reside. This applies to more situations than physically working in another state. 

Earning income in a state you don’t live in is the bottom line – whether the income is from rental properties, partnerships, S-corporations, trusts, estates, gambling winnings, etc. In addition to the nonresident return(s), you must also file a return for your resident state if it collects income taxes. 

This may apply to commuters who cross state lines to get to work. For more information, read Living in One State, Working in Another. Individuals working remotely for employers in states outside of their resident state may also need to file nonresident returns.  

Do I need to file a part-year state return?

Individuals who lived in multiple states throughout the tax year (e.g., if you moved from one state to another) are required to file part-year resident returns for each state.  

To learn how to avoid being overtaxed because of a unique state tax situation, read more here

TaxSlayer makes it easy to file multiple state returns. We guide you to help you select what type of state return you need to file. 

The information in this article is current through tax year 2019. 

This article is intended to provide general information to the public and does not provide personalized tax, investment, legal, or business advice. You should seek the assistance of a professional for advice on taxes, investments, and any other financial, legal, or business matter pertinent to your individual situation.

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