Domicile vs. Residency: Considerations When Making the Change
Overview
Domicile determines a taxpayer’s home state for income tax purposes. While proof of residency can be as simple as getting a driver’s license from the new state, proof of domicile can be much more complex. Each state has their own requirements when determining a taxpayer’s domicile. The process can be challenging and tricky, but there are several ways for taxpayers to cut ties with their previous state of domicile.