183-Day Rule #digitalnomad #expat #expatlife #taxes

Summary

The 183-day rule is a tax determination method used by states like New York, New Jersey, and California to establish residency for tax purposes. Under this rule, if an individual spends 183 days or more in one of these states and maintains a permanent residence, the state can classify them as a statutory resident. This classification allows the state to tax the individual's entire worldwide income, potentially creating significant tax implications for expatriates and frequent travelers. Understanding and tracking days spent in these states is crucial for managing potential tax liabilities.