Grand Rapids City Tax Issues for son

[Cathy Trussler]

Son graduated from GVSU August 2021. Started a permanent job in Ada outside Grand Rapids, May 2021. His permanent address on license is parents house Westland, MI. He lived in 2 different rented houses in Grand Rapids in 2021. We never changed his permanent address to Grand Rapids in 2021, cuz he was only temp in 2nd rented house, but now staying there. He was trying to get a house outside of the city but not right now. We are in the process of changing residency for 2022. His employer in Ada took out Grand Rapids City Tax on his W2 probably because using one of his rented houses address. For 2021, is he a nonresident of GR or resident? Again his license is Westland, MI. Turbo Tax State Return is popping up a ton of questions about this.

Thanks,

Cathy 

[ErnieS0]

Your son would be a Grand Rapids resident if that's where he lived in 2021, even if it was in rented houses and his driver's license had another address. A driver's license is not the determining factor in residency.

Grand Rapids considers someone to be a resident if their domicile (principle residence) was in the
City of Grand Rapids all year.

If your son spent a substantial part of time at your house and considered that his residence (for example, he kept his treasured and permanent items at your house or most of his possessions) then he would be a nonresident.

[Cathy Trussler]

Thanks for your response! For 2020, we didn't do any Grand Rapid taxes cuz he was still in college & working part-time. Like you said his main stuff was at home. For 2021, he really officially moved to Grand Rapids with his permanent job in May 2021. Thus, for 2021, I will say we need a Grand Rapids City Tax & claim residency. He is officially changing residency right now. It is very confusing when they are in college. I have been told not until they get out & their permanent job is when they change residency. He was officially still in college til August 2021 cuz he had a summer class to finish. I didn't realize Grand Rapids had a living city tax. I thought it was only working in like Detroit & he works out of Ada. UGH!