Covid-19 outbreaks have caused many Americans to flee crowded cities and head for refuge in less populous states. Depending on the amount of time you stay, you may be required to file a tax return in both your home state and your temporary “Quarantine” state.
Unless you leave your home state permanently, i.e. give up your apartment or sell your home, you will probably still be responsible for a tax return in your home state regardless of how many days you resided there in 2020.
If you stay a majority of days in the year in your temporary “Quarantine” state, there is a good chance you will have to file a tax return in that state as well. This is known as a Statutory Residency. Each state has slightly different rules so be sure to check with the state you are temporarily residing in for exact details.
“That’s double taxation!” you say? Yes it is.
Since everyone’s situation is different, be sure to check with us for your exact filing requirements. You don’t want a surprise tax bill next April 15.
Sandra G. Johnson, CPA, EA, CFE