If you plan to return to Michigan and are away only temporarily because you are going to school then you could retain your Michigan residency. This would mean that Michigan would be your resident state and all worldwide income is required to be reported and taxed in your resident state (not considering your uniformed service income if applicable in 2016). Michigan would then provide a credit for taxes paid to another state on the same income.
All states with an income tax would require that you pay tax on any wages earned while you are working there and attending school. If you choose to retain the your original state of residency then you would choose nonresident when preparing your return where you attend school.
If, however, you do not plan to return to Michigan, have no ties there such as family, you are free to change your state of residency to Maryland.
Once you complete school your residency will be determined based on where you are domiciled for your state tax.
- An individual may have many residences, or physical dwellings in which he resides, but can have only one domicile, or that permanent residence to which he intends to return. A review of states residency requirements show that 28 states use some definition of domicile to determine if a taxpayer is a resident.
