When the pandemic and subsequent quarantine struck earlier this year, a lot of city dwellers escaped to vacation areas and more rural environs. As two months became four months, and is now extending through the end of the year, many are asking if they can change residency to their current location and avoid paying income tax back in their home state.
It's not that easy. The key concept is the difference between residence and domicile.
Every state that has an income tax follows the concept of a taxpayer's domicile. The domicile concept is that you can only have one domicile. It's your principal, primary home, the place you intend to return to when away. You can have ten residences across the country or across the world, but you can have only one domicile.
To change your domicile you need to have intention. Residence without intention in any location doesn't change your domicile. Even if you expected to stay there two years but ended up staying ten, it still wouldn't be your domicile. If you have an intent to remain indefinitely and you're there, you can still go back to where you came from.
It is confusing. You definitely want to work with a CPA or tax attorney to get it right. Otherwise, you may find yourself in a situation where two states are coming after you for income tax.
One other situation that could come up for someone headed for the hills is that many states want you to file a return for income earned while working there. In fact, 24 states require a nonresident employee to file a tax return if they've worked only one day in the state. However, in a world where you need only a laptop and an internet connection to be up and running, this is one that you should be able to avoid.