Grad student part time NYC resident

[gman98]

I rent an apartment in NYC for my 23 yo daughter who attends graduate school there. We are NYS residents. She works while at school and is subject to NYC taxes but since she is not there for the whole year, how do I indicate part-time NYC resident on her NY state taxes as there is no option for non-contiguous dates. It asks for start and end date for living in NYC. She is there in Spring and Fall but comes home for Summer even though we maintain apartment there, so she is in the city for about 8.5 months.

Thanks

[NCperson]

@gman98 here is the definition of a  NYC resident.  Not enough facts provided for me to offer whether she is or is not a full year NYC resident.  She is not a part year resident.  Is she a resident where YOU live???? where does she vote? what is the address on her driver's license. etc. 

New York City residency tax requirements

In New York City, individuals are considered residents for income tax purposes if they meet either the domicile test or the statutory residency test. 

1. Domicile test

• Your domicile is considered to be New York City if it is your permanent and primary residence, the place where you intend to return after any time away.
• You can only have one domicile at a time, according to the NY Department of Taxation and Finance.
• To change your domicile, you must demonstrate a clear intent to abandon your New York City domicile and establish a new one outside of New York City, shifting the focus of your life to the new location. Actions like selling your New York City home, changing driver's licenses, and registering to vote in your new location can support a change in domicile. 

2. Statutory residency test

• Even if your domicile is outside New York City, you are a statutory resident if you maintain a permanent place of abode in New York City for substantially all of the taxable year (generally more than 11 months) and spend more than 183 days of the taxable year in the city.
• A permanent place of abode is a residence suitable for year-round use that you maintain, whether owned or rented. It typically includes living quarters with sleeping, cooking, and bathroom facilities, according to the NYS Department of Tax and Finance.
• Spending part of a day in New York City counts as a full day for the 184-day rule.
• You are maintaining a permanent place of abode if you do what's necessary to continue your living arrangements there, such as owning or leasing the place, or making contributions to the household. 

[gman98]

Hi,

Her primary residence (domicile) is our home on Long Island. But if I am reading your post correctly, it looks like she may be a statutory resident of NYC since we are maintaining her apartment there and will be there for more than 183 days for grad school. I'm assuming that means full year  NYC resident for tax purposes?

Thanks again.

[LenaH]

Yes. Even if your daughter's domicile is still on Long Island, your daughter likely meets the statutory resident test. The test looks at whether someone maintains a permanent place of abode in NYC for substantially all of the year and whether they spend 184 days or more in NYC during the year. Meeting both of these tests means your daughter is a NYC full-year resident for tax purposes. 

There is an exception to the permanent place of abode test for undergraduate students, but it typically does not apply for graduate students as 105.20(e)(1) states that the degree program must be leading to a baccalaureate degree to qualify. 

@gman98 

[gman98]

Thanks for confirming Lena!

That's what I thought. 

Will I still be able to claim her as a dependent even though I maintain the apartment for her grad studies? She uses the apartment for school, I provide her support and she is under 24 full time grad student. 

thanks again

[NCperson]

@gman98 as long as she is under 24 years old and a full-time student, provides less than 50% of her own support, lives with you at least 6 months of the year (and living away at school is still considered "living at home" as the IRS defines it), you can claim her as a dependent.

The year she turns 24 "all bets are off" as the rules change.  You could only claim her if YOU provide MORE THAN 50% of her financial support and she earns less than $5,200 (2025).   Living with you for any length of time is not a requirement. 

Either way, the tax credit of claiming her is worth up to $500.

[gman98]

Thank you!

Since she lives away for school  but comes home I am assuming thats considered a temporary absence even though we maintain her apartment all year for school purposes.

Also, what address would she use on her NY tax return since she would be considered a full-time statutory NYC resident for NYC tax purposes even though she is still considered "living at home" on Long Island.

[NCperson]

@gman98 

<< she lives away for school  but comes home I am assuming thats considered a temporary absence even though we maintain her apartment all year for school purposes>>

for a Qualifying Child (which is someone under the age of 24 and a full time student, among other requirements), the question is whether she lives with you for at least 6 months of the year.  Being away at school is considered temporarily living away from per permanent home.  The IRS is not asking about the dwelling - whether that be an apartment, on campus housing, who owns it or who pays for it.  For IRS purposes, in this situation, she lives with you more than 6 months of the year, and that is all that matters. 

On her tax return, she should use the address where she would want the IRS (or the State) to send any correspondenace.  It's a mailing address; it's not ncessarily where she lives.