TaxDay helps you track your travel between different jurisdictions (States) by using the GPS feature in your mobile device and the specific tax residency rules in all 50 States which are embedded within the app.
To get started, TaxDay needs to know:
1.Your Home Tax Jurisdiction that you declare for tax purposes (primary residence or domicile)
2.Each of the states where you might maintain a home (“abode”);
3.The place(s) you designate to be your primary “work jurisdiction.”
TaxDay will use this information to help determine when you might reach an important day or month “threshold” that defines full time or statutory residency in a particular state.
TaxDay can help keep track of your daily travel and how that might trigger potential residency thresholds in each state. For each state that you travel to, TaxDay will indicate what might be your tax status based on your travel to date (“Resident,” “Potential Resident,” “Part-Year Resident,” or “Non-Resident”).
You can have TaxDay send you notifications to alert you to several things as you travel;
1.New Jurisdiction Notification – TaxDay can notify you when you enter a new tax jurisdiction, which will then require that you indicate the nature of your visit (“Travel Category”). You will also be able to attach receipts to document your presence in that jurisdiction.
2.Pending Travel Record Reminder – Categorizing your travel is an important part of providing proof of residency. After you enter a new tax jurisdiction, you can receive a reminder to select a “travel category” (see below) for entry into your Travel Records.
3.Threshold Notification – You can also set TaxDay to notify you when you approach a specific residency threshold for a given State. TaxDay will use the tax rules for that jurisdiction to calculate how your travel might trigger “Potential Residency” for that State.
Tracking Your Travel
By selecting any specific State from the home screen, you can see an Overview of all your travel for that State, including Tax Days Used, the residency Threshold Days, and Tax Days Remaining.
Travel Records – From the Home Screen, you can view a dashboard summary of your travel for all jurisdictions where you traveled. The Travel Records tab shows a chronological list of all your travel across all jurisdictions. Select an entry and you can see the actual day and time recorded for that trip, along with any items added as an attachment as proof of travel.
Receipts – TaxDay will also allow you to attach receipts to any Travel Record for a jurisdiction. You can attach more than one item, including photos of receipts and boarding passes, copies of travel itineraries, or any other documents needed to validate your presence in that jurisdiction.
Since most States vary as to what constitutes a duty day, or “Tax Day,” TaxDay allows you to designate the purpose of your visit to help determine if your travel might be counted towards your full time, or statutory, residency threshold.
For example, some States will not count towards their taxable threshold any travel where you are simply passing through, or transiting, to another jurisdiction (e.g., changing planes at an airport, or driving or taking Amtrak to a distant destination). However, other States do not specify any such exclusion, such that any time spent in that State counts toward the residency threshold. Similarly, some States will not count vacation time or a temporary work assignment as a taxable work day.
TaxDay allows you to designate the purpose of your trip to help provide a more accurate count of your taxable days in any jurisdiction. Here are the categories that TaxDay allows you to select when recording your travel:
Frequently Asked Questions
TaxDay was working before but now it’s not tracking my recent travel?
In the menu bar, go to “Setting” > “Account Setting” and make sure that the “Log Jurisdiction Changes Using GPS” tab is turned on (tab pushed to the right). If you are using more than one mobile device to track your travel, make sure the device in question has the above setting turned on.
I traveled in and out of the same state during the day; how does that count against my residency threshold count?
Since TaxDay contains the residency rules for each State, it is able to calculate your travel within a 24-hour period and determine if you have triggered more than one taxable day based on multiple visits within a short period of time.
What happens when I travel internationally?
TaxDay does not have a Global Edition released yet. Therefore, any travel outside of the U.S., will be captured and recorded (cumulatively) as “Non-US Travel” on the Home Screen. However, you will be able to enter the details of the trip as an individual Travel Record, and attach receipts and other documents to substantiate that travel, same as for US Travel.
How do I attach receipts to my Travel Record?
For any specific trip, when recording the Travel Category, you can also select the “Add Attachment” feature which will provide TaxDay access to your photos. From there you can attach copies of receipts and other travel records to substantiate your visit. For example, if flying and using a digital boarding pass in your iPhone Wallet, you can take a screen shot or photo (of both sides!) of your boarding pass, and attach it to your Travel Record.
Why do I need to select a Travel Category?
Since most States vary as to what constitutes a duty day, or “Tax Day,” TaxDay allows you to designate the purpose of your visit to help determine if your travel might be counted towards your full time or statutory residency threshold. As a result, TaxDay allows you to designate the purpose of your trip to help provide a more accurate count of your taxable days in any jurisdiction.
What are the Travel Categories and what do they mean?
TaxDay allows you to select the following Travel Categories when recording your travel:
- Business Trip – For regular business trips which are generally treated as taxable.
- Temporary Assignment – Can be used to designate a short trip where the assignment has a clear beginning and end date.
- Transitory Visit – For trips passing through a jurisdiction on the way to a final destination.
- Vacation Trip – For leisure visits where no business is being conducted.
- Medical Trip – For trips with a medical, health or recuperative purpose.
- Personal Trip – For trips where there is a clear personal intent involving no business purpose.
- Charitable Purposes – For trips where the business purpose is to support a charitable event.
- Other Tax Day – Non-specific visit where the designation as a taxable day is clear.
- Other Non-Tax Day – Non-specific visit where the user wants to clearly note it as being a non-taxable day.
You can attach receipts to substantiate the categories selected above, and also have the ability to edit them at a later date.
On the individual State page, why is there a difference between the days shown in the “Tax Summary” and the days shown in the “Overview”?
There may be trips where you might visit the same State more than once during the day. In that instance, TaxDay will record those as multiple Travel Records, and you may use separate Travel Categories to record them, e.g., you drive to New York City from Connecticut in the morning for a medical visit (which NY State excludes as a taxable day), then return later in the evening for a 2-day business conference. While the ultimate taxable treatment may require consultation with your tax advisor, TaxDay will record them as separate visits in the Overview, and treat it as one taxable visit in the Tax Summary.
How can I find out what the tax rules are for any given State?
Solely for informational purposes, for each State that you record travel, TaxDay contains a brief synopsis of how that State might define a taxable day, and what their residency threshold might be. You should always consult your own tax, legal and accounting advisors concerning your particular situation, especially since these rules are subject to change without notice.