Help with colorado state tax

[ankur11]

I came to us on 3rd January 2024. I had my apartment lease from 30 December 2023. I have a few questions if anyone can kindly help answer.

1. So far i read that only green card holders and citizens can be considered to be domicile of colorado, is that correct?

2. Since I came on 3rd January 2024 and stayed more than 6 months, I shall be a resident because of the domicile or the resident rule?

3. What will be the status, will it be resident for the full year or part year resident from 3rd January 2024?

4. If i leave US in 2025 after living two months in colorado, will I be a part year resident in colorado based on domicile or a Non resident in 2025 as people on VISAs cannot be domicile?

[SabrinaD2 · Accepted solution]

Here’s the breakdown of your Colorado state tax residency questions with supporting resources:

Question #1 - Domicile Status 

• No, domicile in Colorado is not limited to green card holders or citizens. A permanent resident alien can establish a domicile in Colorado. However, a person on a temporary visa is not considered domiciled but may qualify as a resident under the six-month rule. Domicile refers to your permanent home where you intend to live indefinitely.
• Resource: Colorado residency guidelines

.Questions #2 & 3 - Residency Status

• If you moved to Colorado on January 3, 2024, and leased an apartment, you established a domicile. Additionally, living in the state for more than 6 months qualifies you as a resident under the six-month rule, even if you are on a temporary visa.
• For 2024, you will be considered a full-year resident because your residency began on January 3, 2024, and you remained in Colorado for at least 6 months
• Resource: Colorado residency guidelines
   

Question #4 Residency Status for 2025

• If you leave Colorado in 2025 and abandon your domicile (e.g., no longer maintain a permanent home or intend to return), you will be a part-year resident for the portion of the year you lived in Colorado. After you leave, your status will change to nonresident, regardless of the visa type.
• Resource: Colorado residency guidelines

[ankur11]

Thank you so much. Appreciate the help. 

Since i moved on 3rd January, 2024. Wont I be a part year resident in 2024 from 3rd January 2024 and non resident from 1 January, 2024 - 2 January 2024. 

Since I will be leaving in February 2025, I will be  a part year resident right? I wont be 6 months here and so i wont meet the residency based on stay but still since I have a leased apartment till February 2025, I am considered domiciled till February 2025? I shall continue my bank account here till I move all my funds later and I dont have a driving license here but have a state ID. Does that effect?

[RobertB4444]

No, you are a full year resident because you were in Colorado for more than 6 months.

In 2025 you will be a part year resident for the first two months of the year.  The state or location of your ID has no effect on your residency requirements.

@ankur11 

[ankur11]

Thank you so much.

But for federal purposes, I shall be a dual status resident in 2024, right? Since I came on 3rd January, 2024 and stayed after that? @RobertB4444 

Also, in 2025 since i dont meet the substantial presence test, I shall be an NRA?

[DaveF1006]

Yes. For federal purposes, if you stayed in the US from Jan 3 through the full year, you may file as a Resident Alien for tax purposes because you have met the requirements of the substantial presence test for resident aliens.

Substantial Presence Test

@ankur11