Our 19 year old son lived offshore in the UK with us for three years before starting university in the US last year. He is still considered a UK resident (under UK rules) because, in the UK, students living away from home while in university are resident at their parent's home as long as they are supported by their parents. From reading posts related to students attending university in a US state different from their parents, it seems the child is resident of their parents' state as long as they are still dependents of the parents. Our son is still our dependent, however because he has earned income he has to file his own tax return.
Our son has income from his summer job in the UK and also income from a school job in the US. If he is considered resident with his parents in the UK, we presume he would file a non-resident state tax return for his school job income. Is that right?
But what about his summer UK earnings? Despite spending nine months in the US going to school, does he still qualify as a bona fide non-US resident and entitled to the foreign income exclusion on the earnings from his UK job? He came back to the UK regularly on school breaks and during the summer.
