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"Tax home" as used by the IRS is one factor in determining whether someone is a resident or non-resident alien. It doesn't apply to U.S. citizens, and is not really relevant for this topic, which is state residency, but here is the definition (Pub 519):

funny!! that is what my son said!

Charge them the new price, then give them a discount for superb organization.

Residency and domicile are two different things. Your client is domiciled in the other state, but IL still considers him a resident. There are many factors that can be used to determine residency, and only one is where the TP lives or spends time. Basically, where has the TP planted his flag so to speak: driver's license, car registration and inspection, voter registration, church, doctors, banking, where the rest of his immediate family lives, where the kids attend school, mailing address, still maintains a home in that state, social club memberships, etc.

I've done the discount thing for years. Builds in extra where the clients are a PITA (although a few have gotten surcharges - one guy got a $50 "staple removal" charge after I spent a half and hour (and several fingertips) removing so. many. staples. it wasn't funny - after having warned him the year before not to staple stuff! following year there were paperclips - he learned). And allows you to reward the best clients with a discount. I've gotten a few thank-you notes for the discounts! Real-life 'thank you' pretty cards mailed to the office. Those get put in the client's file.

If I could wave a wand and go back 40 years, I would be charging a flat rate for my payroll software, and a separate fee by state, for the states with WH. (See the thread on the upcoming AL change. I will likely be spending many hours on a small percentage of customers this fall.) I may actually implement something along this in a few years, keeping the fee the same for the no hassle (no state WH states) and only the next increase for the rest of the states. Have to balance it though, as more prices means more complication, and zero chance of automated orders, so never mind .

My average is half the national average discussed, might be why I have repeat customers. I also live in a low-cost small town, and have little overhead. My wife's daughter helps me with the paperwork, and that is the extent of my massive staff. I also have write-up work for CPAs steady work in the off-season. Also Tennessee has no State income tax to prepare. However, being long and narrow, we are never far from another of our eight contiguous states, all of which have a state income tax. For me, if I have to prepare a state return, it takes me quite awhile, except for Alabama, where I have several customers. The format of the various states is fascinating - they're all different.