My situation is as follows — I am a 22 year old college senior graduating in May. January through May I lived in Indiana while at school. In June I will be living in IL at my parents’ apartment in Chicago for a month until finding my own place to move into July 1. I will be supporting myself & living alone July through December, and will therefore be filing as independent. My parents own a home in CA and are considered CA residents. Outside of a 4 day visit to CA in late June, I will not otherwise be stepping foot in the state this year. My bank accounts and car have been linked to IL since the start of the year, and in early May I received an IL ID and registered to vote in the state.
In January, I realized a capital gain on the sale of stocks. I plan on realizing another gain at some point later this year. My ultimate goal is to avoid paying tax on this gain outside the federal tax and IL state tax which I believe I will owe. My understanding is that once I am considered an IL resident, I would only owe IL (and not CA or IN) state tax on any capital gains. Is this true?
Moreover, when would I “officially” be considered an IL resident? At what point could I realize a gain and only owe IL state tax? Would I owe CA state tax at all on the gain I realized in January?
Any and all help is appreciated 🙂
