An individual who is fully retired or unemployed does not have a tax home within the
For alien tax withholding, this exception is applicable only if a claimant/ beneficiary
is/was employed or self-employed during the period of presence being considered.
The “tax home” concept is used by IRS to determine whether certain living and travel expenses are
deductions for tax purposes. It is generally an individual's main place of business
or post of duty.
If an individual is employed or works in two places (even for the same employer),
his tax home is the area in which his main place of business or work is located. The
tax home is the place he regularly lives if an individual does not have a regular
place of business because of the nature of his business.
A tax home is determined by considering the:
Total time ordinarily spent working in each area;
Degree of his business activity in each area; and
Relative amount of his income from each area.