You can only have one state at a time that is considered your resident state, even though you may spend time in more than one state.
Your resident state is not determined by where you intend for your home to be. It is normally the state where you spend the most time, or the state that you would plan to return to after temporary absences. States also look at things such as where your car and drivers license are registered, where you are registered to vote, where your bank accounts or located, if you own property in a state, where you have local club or church affiliations, and things of that nature.
But since TX has no state income tax, and your income is from NC, then in your particular case your tax situation will really be no different, as you will pay taxes to NC regardless of whether or not TX is where you consider your resident state to be.
The only difference will be in which form you will file. If you consider yourself to be a resident of TX, then you will file a nonresident return with NC and report your income from that state. If you consider yourself a resident of NC, then you will simply file a resident return with NC. Either way in your particular situation you will just end up filing with the state of NC since that is where your income is from.
If you also have income from other states other than NC, you would also need to file nonresident returns with those states and report the income that you earn from each state.
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Thank you cheryl
Hello again cheryl,
Claiming TX as your resident state would not really help you with your taxes on income you have from other states. You basically have to pay taxes to any state where you are a resident and any state where you have earned income.
The way it normally works is you would file a return as a nonresident with the state where you had earnings, and pay taxes to that state on the earnings you had from within that state's borders. You would then file a return with your resident state and report your total income from all states combined. And your resident state would then allow you a credit for the taxes you already paid to the other states.
But in a case where your resident state happens to be a state that does not have income tax to begin with, then of course you have no return to file and no credit to apply to your taxes there. But it does not relieve you from having to file returns with the other states where you had income.
So even if you were to declare TX as your resident state, you still need to file a nonresident return with every other state where you had earned income and pay tax to those states based on the income earned from each one.
The only time that you can ever escape paying state taxes entirely is if you live in a state that has no income tax and all of your income is also from that same state.
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