Residency

[JCB56]

Hello, I am doing my daughters returns. She goes to college in St. Louis at SLU. We live in Illinois.  In 2019 she rented an apartment in St. Louis all year January to December. She earned 100% of her income and money in Missouri. According to what I see it looks as though I still need to file taxes for her in Illinois. I have done this in the past because she did come home and she did earn some income in Illinois but in 2019 she did not. She is looking to stay in Missouri after graduation. My question do I need to file Illinois and why would she still be classified a full year resident of Illinois when she did not live here 1 day. 

[fanfare]

You don't have to live in the state one day to still be a resident.

However, given that your daughter now considers herself a Missouri resident, she is a Missouri resident.

With no IL income, she doesn't have to file in IL.

Check the MO income threshold for who must file a MO return based on income earned.

[JCB56]

Thank you so much for responding and your answer. That is what I was thinking. We are filing a Missouri return. Much appreciated.

[JCB56]

Hello again. Question came up as I was e-filing the Federal and Missouri returns. Even though her tax liability was zero does she still have to file an Illinois return. Thanks again, YouTube been very helpful. 

[SteamTrain]

You really haven't made Her situation for 2019  clear yet....her filing situation really depends on when she actually graduated from college, or suspended her education if she left before graduation.

1)  IF she was your dependent while in college, then she remained an IL resident...at least until she graduated.  Her staying in MO while in college is only living there as a non-resident, as it is considered a temporary place she is living in.  IF she graduated in 2019, then she might be a part-year resident of IL and MO, so that all income before graduation is IL income, and all after is MO income (but MO does part-year residencies strange).  So she may still have to file IL part-year tax return if she has graduated in 2019 and is now earning/living in MO.  

2)  IF she didn't graduate, or leave college yet, is still under age 24 as your dependent, then she is still an IL resident even if she stayed in MO all year, and all her income is considered IL income as a full-year IL resident, with a credit applied to IL taxes for any taxes MO kept as a part of her MO Non-resident tax return for her MO-only non-resident income.

[JCB56]

Thank you. That is very helpful.

[fanfare]

"Her staying in MO while in college is only living there as a non-resident, as it is considered a temporary place she is living in. "

Being an out-of-state student does not actually determine whether or not you will be considered a resident or non-resident for filing your taxes. Residency is determined by where you are domiciled.

Domicile is a tax-law concept. It is the place you consider to be your home and where you plan to return after an absence. Domicile isn’t the same as home, abode, or residence. Intent is the deciding factor when you determine your domicile. The law assumes you have a domicile somewhere. It also assumes you have only one domicile.

[SteamTrain]

@fanfare 

I don't disagree with that statement for an independent individual....but for a dependent of her parents (which this daughter at least seems to be), then residency is determined by parents domicile.

_____________________

1) If daughter was age 24 or over anytime in in 2019, then details of her MO  domicile, and income level (if over $4200) may come in to play....as well as any steps she actually took to become a MO resident (Driver's Lisc..car registration, registering to vote)

2)  IF daughter was under age 24 for all of 2019, in college fulltime for at least one day during each of 5 months of 2019....and parents provided at least 50% of support for the year...then she is a dependent of parents and an IL resident for 2019.  (the 50% part can get messy...especially in the year she graduates.  ) .....but most undergraduate college students do not support themselves at the 50% level, even if working part-time.

[macuser_22]

A personal observation... A relatives daughter was attending school in another state.  The parents always claimed her as a dependent since she was "temporary" away from home to attend school.   She (and the parents) learned that if she became a legal resident of that state, the tuition for a resident would be much less than a non-resident (she had a job, changed her drivers license, and met other residency requirements).   Once she met the requirements she was allowed the lower (in state)  tuition, but that meant that the parents could no longer claim her as a dependent.