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New Member
posted Jun 5, 2019 2:59:50 PM

Determining state residency for a college student attending school out of state

I'm originally from Minnesota (still have a MN licence and voted absentee for MN) but am currently attending college in IL. I have only worked in IL this past year, have a 12-month lease on an apartment in IL (been living here "full-time" since May - did not live in MN over the summer), and do not intend to move back to MN after graduation (nor do I intend to stay in IL). Would I file my state residency as MN or IL?

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1 Replies
Expert Alumni
Jun 5, 2019 2:59:52 PM

It depends.  Tax law generally states that you are on a temporary absence when you are attending school.  Under this definition, you are technically still a Minnesota resident, which would require two returns:  an Illinois nonresident return and a Minnesota resident return.  The taxes you pay on your income in Illinois is counted as a credit on your Minnesota return.

This is not a clear-cut situation, however, for two reasons.  One, you did not return to Minnesota over the summer (which is "expected" for most who are away temporarily for school), and second, you state that you have no intention of returning to Minnesota.  While technically speaking you still seem to fit the definition of a Minnesota resident, you can at least reasonably argue that you no longer are, especially if you cannot be claimed as a dependent on someone else's tax return (such as your parents).  Under this position, file as an lllinois resident only.  Keep in mind, however, that Minnesota could argue that your income is taxable there and request/require a return, so you may want to have documentation handy to support your position.