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tboyle91
New Member

Do you change permanent residence if you are only staying for a couple years but are working?

I moved to Ohio in august eith my girlfriend for her schooling. we are only planning on staying two years. I got a job in december working as a contractor but I dont plan on changing my drivers licens
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2 Replies
MichaelMc
New Member

Do you change permanent residence if you are only staying for a couple years but are working?

Living in a particular state only for the purpose of attending school probably will not establish residency in that state. You may still have to file a tax return in that state if you have taxable income there, but you would file as a non-resident.

Residency is based on the concept of domicile. Your domicile is the place where you have family connections, lived and/or worked, belong to a house of worship, and, most importantly, the place to which you intend to return after you have been away. Once you have domicile somewhere, it remains until you move away and abandon the intent to return. 

So, if your domicile was the state that you moved from to attend school, and you intend to return there, barring future events (such as a post-graduation job offer), then that state is still your domicile, and is the place where you are a resident for tax purposes.

You will still need to file a nonresident income tax return, accounting for the income earned from you contractor job, in Ohio. And you will include that income in your tax return for your home state, but should receive a tax credit to reduce the effects of double taxation.

Finally, be careful about the drivers license. Changing your license does not change your domicile. You should be aware that some states require you to have an in-state license if you are both living and holding a job in that state.


Hal_Al
Level 15

Do you change permanent residence if you are only staying for a couple years but are working?

State residency is a tricky grey area and depends on all the details.

I'm of the opinion that your planning on being in OH more than a year ("staying for a couple years") makes you an OH resident. You are not the student, so the student exception doesn't apply.  Not only should you be filing 2018 as a part year resident, you should be changing your drivers license and auto registration to OH.

Tax wise, it wouldn't matter much for 2018. You'll pay the same amount of OH tax as a part year resident or non resident.

For 2019, as an OH resident, you only have to file an OH return. As a non-resident, you'll have to file both an OH return and a return for your "home" state.

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