September 28, 2004 -- If you live and work abroad but are a resident of Pennsylvania , you will be taxed on your worldwide income in the State of Pennsylvania .  A resident is defined as an individual who maintains a domicile in Pennsylvania, unless: (1)  the individual does not maintain a permanent place of abode in Pennsylvania; (2)  the individual does maintain a permanent place of abode outside of Pennsylvania; and (3) the individual spends no more than 30 days in the aggregate in Pennsylvania.

Domicile and abode do not mean the same thing.  A domicile is the place that an individual intends to be his or her permanent home, and to which he or she intends to return whenever absent.  Once established, the domicile of a taxpayer does not change until the taxpayer moves to a new location with the valid intention of making it a permanent home.  Domicile is determined without regard to citizenship.  It is a taxpayer's intention of maintaining a permanent place of abode that determines domicile.  A place of abode, on the other hand, is merely a dwelling place.  To qualify as a permanent place of abode, the dwelling must be used on a regular basis.

Given the above definitions and rules, it is possible for a person to be a resident for some purposes, like voting, while not for personal income tax purposes. Also, if this individual has no intentions of returning to Pennsylvania, then his domicile has changed from Pennsylvania to his current address, especially given the number of years that he has been absent from Pennsylvania.

For more information, contact Bill Burns at 215-564-1900.

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