@taxlady28 wrote:
In this case it is fine to keep your parent residency for tax purposes. It is not your intention to establish a residence and you are living working there temporarily. If you do establish a residence then you would change that on your taxes. The post above lists the things that change your residency.
I disagree. Please read the statute. Louisiana (and many other states) will consider you a resident even if you are not domiciled in the state, if you meet certain conditions.
Every natural person domiciled in the state, and every other natural person who maintains a permanent place of abode within the state or who spends in the aggregate more than six months of the taxable year within the state, shall be deemed to be a resident of this state for the purpose of determining liability for income taxes under this Chapter.
(A place of abode, is generally a residence of some kind that has a bathroom and kitchen, and is suitable for year round living.)
In this case, the taxpayers may be legal residents of Louisiana, depending on when they move into the state to attend school. If they also maintain a domicile (permanent residence) in their former home states, they would be legal residents of more than one state, and this creates a tax situation that is more complicated and more expensive than being a permanent resident of one state and a non-resident of another.
@JHoleman
You need to think about the concept of domicile. Your domicile is your one permanent home. You can only have one domicile at a time, even though you may have more than one living place. You can be away from your domicile for a long time without changing it. There is no signal factor that controls, but some key factors include the location of job, family, doctor, dentist, other professional and personal relationships, voter and driver registration, and intent to return. Also, when you establish a new domicile, you must take active steps to abandon the prior domicile.
In general, the state where you are domiciled (a permanent resident) will expect you to file a resident tax return and pay income tax on all your world-wide income. A state where you are a non-resident (temporary visiting or working) will only charge income tax on income earned while you are living or working in that state, and your home state gives you an offsetting credit.
However, if you are a legal resident under Louisiana law, and you are required to file a full year resident LA return that reports and pays tax on all your world-wide income, and at the same time you are domiciliary resident of Mississippi and Tennessee, those states will also expect resident income tax returns that report and pay tax on all your world-wide income.
Since you are newly married, you may find it more beneficial to abandon your parents' homes as your permanent residences and establish a new permanent residence (domicile) on your own.
