Post Content

Generally, a state may tax the worldwide income of a person who is domiciled there. Although defined by statute or administrative rule in some states, domicile is a common-law term meaning a person’s fixed and permanent place of abode in which the person intends to remain indefinitely or to which the person intends to return.

Domicile differs from residency. Although a person may have multiple residences, a person can have only one domicile. A person may be considered a resident of the state in which he or she currently lives but still be considered domiciled in another state to which the person intends to return.

Once domicile is established in a particular state, it can be difficult to lose.

This reprint of an article that first appeared in The Practical Lawyer in May, 2012, begins by reviewing the key factors that courts and administrative agencies consider in determining domicile and whether the taxpayer has changed his or her domicile as well as the evidentiary standards applied.

The second section of the article examines other tests to determine residency (typically referred to as statutory residency but herein referred to as “residency”) and the definition of a permanent place of abode, residency issues that arise in particular situations, and recent residency cases.

The final section examines dual residency, tax credits available to taxpayers subject to income tax in more than one state, and state legislative efforts and multistate agreements to address double taxation.

DOR's views on domicile are found here

Written By:

Recent Posts

MassTaxConnect for Fiduciary Taxes – Get Started on December 5, 2016! posted on Nov 14

With WebFile for Income Stepping Aside, MassTaxConnect Steps Up MassTaxConnect, the Commonwealth’s new tax revenue system, will be expanding to include fiduciary and other taxes on December 5, 2016. As you may already know, WebFile for Income is now officially closed as we prepare to   …Continue Reading MassTaxConnect for Fiduciary Taxes – Get Started on December 5, 2016!

November 6: WebFiIe for Income Makes Way for MassTaxConnect posted on Nov 4

WebFile for Income says goodbye as MassTaxConnect welcomes more taxpayers In anticipation of MassTaxConnect expanding to include 10 additional tax types, WebFile for Income will say goodbye to users on November 6 at midnight. Save the date – pay bills electronically through November 6 If   …Continue Reading November 6: WebFiIe for Income Makes Way for MassTaxConnect

Form CA-6 is Going Away on October 31: What You Need to Know posted on Nov 1

Amendments and abatements are now separate processes       Form CA-6 is like an old friend and now we have to say goodbye. It was very useful for filing abatements or amending returns. Now those processes will be separated, as they’ve already been for business taxpayers. Hello   …Continue Reading Form CA-6 is Going Away on October 31: What You Need to Know