A Tax Home and a Permanent Residence are DIFFERENT!
Tax Home
Your tax home is entirely based on the area surrounding your job site. The daily commute within this circle is a commuting region, and can sometimes even cross state lines. According to the tax code, there are three main rules to keep in mind when defining a tax home:
You perform part of your business in the area of your main home, and use that home for lodging while doing business in the area (a job).
You have living expenses at your main home that you duplicate because your business requires you to be away from that home.
You have not abandoned the area in which both your historical place of lodging and your claimed main home are located. For example, you have a member or members of your family living at your main home, OR you often use that home for lodging.
It is important to note that it is required that this location maintains ALL THREE of these requirements in order to achieve tax home status, not just two. Some other things to keep in mind are the myth of “The 50 Mile Rule”, and how to reestablish your tax home in case you do end up living in a new location for more than 12 months. Also, check out this page which goes more in depth on all the factors that make up a tax home, and what it means to be an itinerant traveler.
Permanent Residence
A permanent residence is exactly what it sounds like, and is where you maintain your legal ties. These legal ties can include your driver’s license, car registration, voter’s registration, etc. However, in the case of a traveler trying to maintain a tax home, it is less complicated if their permanent residence is within the economic area of their tax home.
