He files annually as a CO resident and a GA non-resident. They may be a resident of CO because their family’s house is in Denver (kids in school, wife works there), but the tax home is in Atlanta, because he plays for the Braves. We often hear of them playing for one city and living in another. An illustration that sometimes helps to keep the permanent residence separate from a tax home is to think of a professional sports player. – – – Your driver’s license, car registration, voter’s registration, etc., are your legal ties to an area. The only exceptions to this would be getting married, or returning to the US after a prolonged stay, or launching out into the job world after a period of unemployment (No! Two weeks out of work does not qualify! – think in terms of months…) *4+ months minimum.Ī permanent residence is where you maintain your legal ties. You must actually work in the new area to create it. (It is all within the DC commuting area.) Generally, A TAX HOME CAN ONLY BE MOVED WITH FULLY TAXED WORK. EXAMPLE: Live in Bowie, MD, work in Arlington, VA, Tax Home = Washington DC Metro Area. Last, but important, if that job site is near the border, it can cross state lines. In our office, we prefer to use commuting time to describe this distance as a 90-minute circle around your job site. Sometimes 45 miles (due to geographic/weather conditions), sometimes 100, depending on what a normal commute is in that area. It is your economic base of income and it encompasses whatever would be the ‘reasonable commute’ (IRS term) for the average employee in the area. The tax home is a rubber band-like circle that is made around your primary job site. Think of this as your “required reading” before you sign your first tax home statement. Taxes for Travelers 101: What every traveler should know about taxes. The only exceptions to this would be getting married, or returning to the US after a prolonged stay, or launching out into the job world after a period of unemployment (No! Two weeks out of work does not qualify–! – think in terms of months…) *4+ months minimum. Sometimes 45 miles (due to geographic/weather conditions), sometimes 100, depending on what a normal commute is int that area. You have not abandoned your tax home (plan on returning and spend around 30 days a year there – does not have to be consecutive.Maintain a physical residence in your tax home area where you last worked and are financially responsible for that residence’s upkeep or your fair share (rent or shared expenses) while you are away from home.Have regular business (employment) in that area.There are 3 requirements you MUST meet 2 out of 3 of these requirements, in order to qualify for tax free stipends.
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