NY based and graduates college in IL and Which State to file?

[Dannyapp]

Hi everyone,

I need some advice regarding my son's 2024 tax return.

He turned 23 in January 2025. We are from New York, and he graduated from college in Chicago last year. In August 2024, he started his full-time job in Chicago and earned income from August through December.

Which state(s) does he need to file taxes in? Can he still file his 2024 return as a non-resident? He still holds a New York driver's license and plans to return to NY eventually, so he does not want to transfer it to an Illinois license. I hope this won’t cause any issues.

For reference, he had internship income in 2023 and filed both NY and IL tax returns as a non-resident.

We’re unsure how to proceed, so any guidance would be greatly appreciated.

Thank you!

[KrisD15]

He is living and working in Illinois, so Illinois is his tax home. 

Having a New York driver's license is not enough to establish a tax home in New York. 

As a dependent student, he would be a resident of the same state as the state in which the person that claims him lives,

HOWEVER 

from your description, it sounds like he is now a non-dependent and filing on his own. 

It also sounds like he is a resident of Illinois and would file as such. 

Since he is a non-dependent for all of 2024 (you did not supply more than half his 2024 support and the child did not live with you after graduating) he will file as a full-year Illinois resident and not file for New York. (unless he has income from NY sources, in which case he would file as a non-resident for New York).

Having a New York driver's license is not enough to establish a tax home in New York. He is living and working in Illinois, so Illinois is his tax home. 

[Dannyapp]

Thanks for the quick answer. Well noted. However, he was a student until June and I supported him, can I claim him as a dependent for 2024??

[MaryK4]

No, because he did not live with you for more than half the year you could not claim him as a dependent. @Dannyapp 

[Dannyapp]

But he got and started his job in August. He lived with me for more than 6 months? 
Thanks in advance.

[DianeW777]

It depends. He graduated from college last year, if that was in May, 2024, and if your home was listed as his permanent residence, then he was a full time student for 2024. Being away from home at school is considered a temporary absence.  Full time student means being a student for some part of any five different months (see definition below).

The real question will be support.  If your son is considered to have provided more than half of his own support you cannot claim him.  Provided is the qualifiers and a dependency worksheet to figure out who paid more for his support. All of his money will be considered spent on him unless you can show amounts placed in savings and not removed.

• You can claim a child, relative, friend, fiancé(e), and so on as a dependent on your 2024 taxes as long as they meet the following requirements:

Qualifying child:

• They're related to you.
• They aren't claimed as a dependent by someone else.
• They're a US citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They're under the age of 19 (or 24 for full-time students).
  • There's no age limit for permanently and totally disabled children.
• They lived with you for more than half the year (exceptions apply).
• They didn't provide more than half of their own support for the year.
  • Rules for Claiming a Dependent
  • Worksheet for Determining Support

IRS Definition of Full Time Student