What State is use for "Domicile in 2018 {Mandatory}" per top of screen 55 when a taxpayer lived in California from Jan through Mar 2018 and then Texas thereafter?

[itonewbie · Accepted solution]

You will need to examine the facts and circumstances based on common law to make that determination.  Many states have had rulings on domicile and some even have these written into their statutes or admin codes.

At a very high level, if your client intended to reside in TX for an infinite period with no plan to relocate back to CA in the foreseeable future and is able to demonstrate this as a fact based on changes to his/her social and economic ties, not only in form but substance, the domicile would have shifted to TX.  Home is really where the heart is, after all.  On that basis, you should be aware that audits may involve review of details that are highly personal (as that's the nature of domicile).

For CA tax purposes, even if one is domicile in CA, one may still be considered a nonresident if all the conditions under the safe harbor rule are met.