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Technically, your tax home is where you have roots, a drivers license and are registered to vote. But as a college student, the simplest approach is to declare your tax home in the state where you earned the income in you earned it where you go to school.
Good question. I am facing the same question. I went to school in Chicago (IL), did my internship in New York (where I earned income), before starting my company (CA). My home state is VA. Would love some input on this field to make sure I'm filing accurately!
Your state of residence, sometimes referred to as your home state, is the state where your roots are. Attending college in a state does not come anywhere close to making you a residence of that state *FOR TAX PURPOSES*. While colleges will have their own residency requirements to determine if you pay resident tuition rates or non-resident tuition rates, it has absolutely no bearing on your home state for your taxes.
Generally, an undergraduate qualifies to be claimed as a dependent on the parent's tax return. So the student's home state is the state they lived in (usually with the parents) before starting college. Each state has their own residency requirements and definition of what constitutes a resident of that state. Attending a college in that state isn't one of them.
Generally, for federal tax purposes your home state is:
- Where you got your drivers license issued (and your resident address as shown on that license)
- Where your vehicle is registered
- Where you are registered to vote
- Where you own real property
There are many more, of which I've got a brain block on right now and can't think of them. But understand that just because you may meet college requirements to pay lower resident tuition rates, that does not in any way mean you are a resident of that state for federal tax purposes.
As an example, lets say your parents' are in Illinois and that's where you grew up/attended high school, and after graduating HS you when to Wisconsin to attend college. If you claim WI as your resident state, then your parent's can not claim you as a dependent and your parents can not claim "ANY" of the education credits. Additionally, you can't qualify for any of the education credits either. So it would be a lose-lose for everyone.
In a nutshell, for the 4 years you are in college your home state is where your parents live, and your parents will claim you as their dependent for all four years.
Simple answer: no. But, as the other replies indicate, it depends on the details. For most college students, who are still dependents of their parents, their home state is where there parents live. This is true even if you live off campus, at school.
But, if you earned income in the state where the school is, you may have to file a non-resident state tax return and pay income tax to that state, You still have to file a home state return, but your home state will give you a credit for what you pay the non-resident state. Some states have reciprocal agreements**, in which case you file only a home state return.
** List of reciprocal states: https://ttlc.intuit.com/community/state-taxes/help/which-states-have-reciprocal-agreements/00/25576
When it comes to residency, college residency requirements and tax residency requirements are two completely separate and unrelated things. Colleges will usually have their own set of residency requirements that if a student meets those requirements, that qualifies the student for the in-state tuition rates. But for tax purposes that does not in any way, form or fashion mean the student qualifies as a resident of that state.
Besides, if an undergraduate is claiming a state different from his parents has their "tax home", then when it comes to the education deductions and credits, everybody (parents and student) will lose out big time.
The replies on this thread are very close to answering the questions I have about my 21-year-old sons. But I want to verify If my thinking is correct.
Son #1-Parents are residents of Georgia and he attends college in Tennessee. He moved off campus in 2018 and moved into an apartment. Because he is basically supporting himself, in 2018 and 2019 he was not claimed as a dependent on his parents’ taxes. He has a Georgia driver’s license. He does not have a vehicle. He worked on campus but because Tennessee does not deduct state taxes, no taxes were deducted. In 2018 he filed a Georgia tax return and because no taxes were deducted, he ended up owing money to the state of Georgia. His tax returns and W2s have our Georgia address. From what I read in the thread, he should continue to file state of Georgia taxes, correct? (I’m trying to avoid paying taxes to Georgia if possible).
Son #1-Parents are residents of Georgia and he is in Florida. He attended college in the spring of 2018. He started working in an AmeriCorps program in July 2018 and moved into an apartment. Because he is basically supporting himself, in 2018 and 2019 he was not claimed as a dependent on his parents’ taxes. He obtained a Florida driver’s license in July 2019. He does not have a vehicle. He is still working in the AmeriCorps program. Because Florida does not deduct state taxes, no taxes are deducted. His tax returns and W2s has his Florida address. Because he was not a college student when he was working, I thought of him more as a Florida resident. Because Florida does not withdraw taxes, a Florida tax return was not filed, and I did not have him file a Georgia tax return. Is my logic correct?
Son #1 is still a GA resident and must file a GA return. He is a GA resident because his primary purpose of being in TN is to attend school. Also the GA Drivers license (DL). That would be easy to change. If his apt. lease is 12 months and he stays there during summer breaks, just get a TN license.
Son #2 is a FL resident. He has an apt, job, and DL and does not go to school
Thanks so much for your reply.
What about a grad student where you are not dependent on anyone?
i have a house in NC, but will be going to Grad school in CA. I will be keeping the house.
If you are just in CA for school and will be returning to NC, your absence is still considered temporary and you will remain a NC resident. If you work while in CA, you will file a non-resident CA return as well as a NC return.
Slightly different scenario - my parents pay my college tuition, but I pay for everything else with money I earn myself through various jobs and internships. Based on income, I’m required to file my own tax return. My parents live in NY State, but none of my income is from NY State (various states other than NY). As ID, I have a learner’s permit from where my parents live, but I don’t have a car and don’t drive. My mailing address is my frat house in MA. My parents don’t qualify for any education credits etc. For 2021, I’m living in MA for about 8 month, in WA for 3 months, and only about 4 weeks with my parents in NY. Question - (1) are my parents required to claim me as dependent, or can I take the deduction myself? (2) Can I file as a MA resident? (3) If the answer to (2) is no, then what else would it take to be able to file in MA?
There are two types of dependents, "Qualifying Children"(QC) and standard ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, a relationship test and residence test.
A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:
So, it doesn't matter how much he earned. What matters is how much he spent on support. Money he put into savings does not count as support he spent on him self.
The support value of the home, provided by the parent, is the fair market rental value of the home plus utilities & other expenses divided by the number of occupants.
The IRS has a worksheet that can be used to help with the support calculation. See: http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf
@Overtaxedstudent; to answer your questions, you first need to determine if your qualify as your parent's QC dependent. Most students do. If that is your case:
Q. Are my parents required to claim me as dependent?
A. No. They are not required to. But they can and will get a $500 other dependent credit if they do. But, since they can claim you, you may not claim yourself. In TurboTax, you indicate that somebody else can claim you as a dependent, at the personal information section. TT will check that box on form 1040.
Q. Can I take the deduction myself?
A. No. If you can be a dependent, you cannot claim yourself. Actually there is no longer (since 2017) a dependent/taxpayer exemption (deduction). You may, however, claim a non-refundable tuition credit; even though your parents paid it, as long as they forego claiming the dependent credit.
Q. Can I file as a MA resident?
A. No. Since you are a student, who can be a dependent, you are considered a resident of your parent's state.
Q. If the answer to (2) is no, then what else would it take to be able to file in MA?
A. You must file a MA non-resident return, because you have MA source income. WA does not have an income tax. You must also file a NY resident return and pay tax on both your MA & WA income. NY will give you a credit (or partial credit) for tax paid to MA.
This is really helpful! Thank you very much!
Sadly, this does not get me at all out of paying insanely high NY State and City taxes, despite rarely ever being there and not earning any income there 😰
Hi! So I am from Florida which is my permanent residence where I live with my parents. I started a remote job in February (job is based PA but I was hired full time remote). I am a graduate student in New York City and moved to NYC for school in March. I got an apartment in NYC for the duration of the graduate program and will be moving back to Florida at the end of the program. My boss though is claiming she needs my W2 to be for NYC. As a student wouldn't Florida be where I file since I am a student and dependent still?
Thanks!
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