If you own property in multiple states or frequently travel between states for business or leisure, your residency status could affect your tax liability.
Many states have specific thresholds for the number of days you can be present without triggering residency — and with it, potential tax obligations. Failing to track these days accurately can lead to penalties, overpayment, or underpayment.
Why Day Tracking Matters for Taxpayers
Logging your time in each state isn’t just helpful — it’s essential for:
Multistate residents who split time between high-tax and low-tax jurisdictions.
Business owners or remote workers who cross state lines.
Individuals trying to avoid triggering dual-residency tax issues.
Most states follow the 183-day rule, meaning if you spend more than 183 days in a state, you could be considered a tax resident — and required to pay state income tax, and in some cases, capital gains tax, estate tax, or local taxes. However, federal and state definitions of residency can also differ, adding another layer of complexity. This is why working with a tax advisor who understands multistate rules is advised if you frequently spend time across states.
Compliance can also be challenging when relying on manual methods. That’s where residency tracking software shines. It automatically logs your location and helps you file with confidence.
1. Tax Day
TaxDay (Taxday.com) is an innovative travel-tracking app for people who work or reside in multiple states throughout the year. The app allows you to track the time you spend in different tax jurisdictions and comes with the complete and often complex residency tax rules for all 50 U.S. states.
The tax-app links to your cellphone GPS to automatically track the amount of time you spend in a specific state. This allows you to quit the stress of manual tracking, giving you an accurate log of taxable days to account for on your multistate tax return each year.
Prominent features:
- GPS tracking: uses cellphone GPS to track your time in different states.
- Data security: keeps your information safe and private.
- Travel overview: app reports and notifications let you monitor your travel history.
- Tax planning: tax reports provided by the app give your tax practitioner accurate information for easy tax filing.
2. Tax Bird
Like Tax Day, Tax Bird (Taxbird.com) tracks the number of days you spend in a state. The app also alerts you when you approach the threshold for residency, and creates a detailed report on the time you’ve spent in different states.
Prominent features:
- Uses your device’s location to track time spent in state.
- Provides a comprehensive residency report that shows the total days spent in each location per tax year.
- Notifies you when you approach a state residency threshold.
3. Monaeo
Like Tax Day and Tax Bird travel tracking apps, Monaeo (Monaeo.com) works in the background to log your travel time across states. The app offers a calendar display of your annual travels, giving you access to details on specific trips gone by. It also offers warning alerts when the threshold timeframe is approaching.
Prominent features:
- Provides automated travel logging and recordkeeping of travel per state.
- Gives you early alerts when approaching residency thresholds.
- Provides location reports that can be accessed for years after the travel
- Offers data security
Keeping track of the time you spend in other states is imperative to filing accurate tax returns. Unreliable data can put you at risk of investigation and multistate tax penalties. If you travel between states, consult with an expert to help you manage your tax portfolio in a way that safeguards you against run-ins with the IRS.
Fusion CPAs are equipped to help individuals and entities with multistate taxes. We offer financial planning, tax preparation, bookkeeping, and software solutions.
Whether you’re a business owner, high-earner, or digital nomad, our team can help you understand state residency thresholds and optimize your tax position by avoiding penalties. Contact us today!
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This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.