John and his family were living in New Jersey when he accepted a full-time job i

Question

John and his family were living in New Jersey when he accepted a full-time job in Philadelphia. During the week, John lives in a rental apartment in Philadelphia that is within walking distance of his office; on weekends he drives home to be with his family in New Jersey where he also does a few hours of consulting work. Where is John's tax home?

a. Philadelphia

NYC

c. New Jersey

d. He can choose Philadelphia or New Jersey

a. Philadelphia

NYC

c. New Jersey

d. He can choose Philadelphia or New Jersey

Explanation / Answer

Tax home or tax residency is where you do your primary job. In John's case, his main job is in Philadelphia regardless of few consulting work undertaken in New Jersey.

Hence, John's tax home is Philadelphia.

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