Working in Ohio, should I claim residency in Ohio or Tennessee?

[Santhvia1832]

I am planning to move to Tennessee while still keeping my job in Ohio. Would it be better to leave my address of residency in Ohio, or change it to Tennessee? I know Tennessee does not have income tax while Ohio does. Which choice would be in my best interest when filing my taxes? Thank you.

[SteamTrain · Accepted solution]

I don't think It's a matter of choice.

If you move yourself and home goods to a TN residence, for the foreseeable future (or usually planned to exceed at least 6 months).....then you become a TN resident on the date you move into your new residence/home in TN.

Now, taxwise, OH can tax all your OH job wages, both before and after you move to TN, as long as you continue physically working in OH...so no difference there. 

,,BUT #1: before you move, OH can also tax all your interest, dividends, and investment income...also any retirement distributions too.

..But #2: after the date you move to TN, OH can no longer assess an income tax on those extra sources of income.

Yes, TTX can handle a part-year tax return for OH, but if it gets too complex for you (when you start allocating what income belongs to OH) then get a local tax preparer to do it for you for whatever year's taxes are involved with your move.

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As a practical matter, if you plan to vote in the November election....do NOT move before the middle of November.   Once you move, you are no longer a resident of OH and cannot vote there, and if you actually move in the next few weeks before the election, it may be too late to register to vote in TN  (that depends on what TN's registration laws are...but some states are shutting down soon)

[Santhvia1832]

Thank you very much! I am moving mid-December so the election will not be an issue. I am a full-time student, working part-time when I return from school breaks. Most of the year I am at school in London, England. When I am not at school, my seasonal job is in Ohio, and my significant other is buying a house in Tennessee. My family is all still in Ohio, and when I am home from school I spend equal time between Ohio/Tennessee. At this time in my life, I have the choice to pick if my permanent residence is in Ohio or Tennessee, and I wanted to make the right decision that would have the least impact on my taxes. Thank you very much for your helpful response, I greatly appreciate it.

[SteamTrain · Accepted solution]

Details..details...   You didn't indicate you were a full-time student !

Depending on whether your parents "can" claim you as a dependent....that could very well impact your ability to claim TN, as usually, if parents can claim a full-time college student as a dependent, then the student must remain a resident of the parent's state.....as long as you are under age 24 at the end of 2024, and do not provide more than half your support.

So if you will be under age 24 at the end of 2024, then what support is provided by your parents (pay for college and living expenses in London??)  may come into play.

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If this is the case (under age 24 all of 2024)...then it's getting way beyond my ability to suggest how your situation may properly evolve.

[Santhvia1832]

My parents do not claim me as a dependent, I am currently 24 will be 25 in January 2025.