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Level 2
posted Oct 25, 2023 11:53:14 AM

Child seeking residency in another state

My child is seeking residency in another State and one requirement is that the parents cannot claim child on their 2023 federal taxes. Would the parents be able to reclaim him on their 2024 taxes as a dependent?

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5 Replies
Level 3
Oct 25, 2023 12:20:59 PM

Interesting question.  I would look at the agreement again.  Normally an agreement in Family court states a time period for the specific requirement.  If the document has not been finalized, I would contact my legal representative and get that clarified now, in writing.  From what you say, it isn't apparent by the information you have.  It needs clarification prior being signed by you (or legal guardian) and presented to the court.  I am not a attorney but tax law states that the taxpayer or tax preparer rely on agreements from the courts while preparing all applicable tax returns.

 

 

Level 2
Oct 25, 2023 12:47:04 PM

Hmm the response doesn’t answer my question.  Will you review and answer again, please? 

Level 15
Oct 25, 2023 12:55:51 PM

Why can't you claim them for 2023?  Who is requiring that?  Is this for school?  The prior reply does answer the question.  We don't know all the details.  You have to ask whoever is telling you that you can't claim them.  And you are asking about when you file 2024 tax return in 2025?  Will anything change in 2024 next year or will the situation be the same?

Level 2
Oct 25, 2023 1:18:21 PM

My son is filing for residency in 2024 in another state. This is so he can pay resident tuition and not out of state tuition for the 2024-2025 school year. One of the residency requirements is that the parents cannot claim him on their 2023 federal taxes.  Once he has residency status in Fall 2024, I wonder if I can claim him on 2024 taxes as a dependent. I’m paying his tuition and can claim the college expenses but only if he’s a dependent I believe.

Level 3
Oct 25, 2023 1:54:12 PM

Snoosh,

 

Thank you for providing more information in your situation.  This is a question that you need to investigate with the college's student admissions or financial office.  You then can apply the applicable rules to your tax filing.  I do know that it is difficult for a student to gain "independent" status for college purposes.  I am not sure if he is attempting to be "independent" for tuition reasons, if so then you would need to look at the rules applicable to that status for future years.  

 

I found this information at the College Funding Coach- https://www.thecollegefundingcoach.org/how-out-of-state-students-can-get-in-state-tuition/:

 

In general, trying to establish residency for in-state tuition is not worth the hassle. In the past, elaborate rules for in-state tuition qualification were established to safeguard taxpayer-subsidized public universities. These domicile rules vary by state, but here are a few general guidelines:

    1. Twelve months: Generally, students must live in the state for a minimum of 12 months prior to enrolling in order to gain residency status.
    2. Proof of residency: Students need to provide voter registration, car registration, and conversion of their driver’s license as proof that they lived in the state at least 12 months prior to enrolling in school.
    3. Relocation purpose: Most states won’t grant residency if the student’s purpose for moving was primarily educational. Students must usually demonstrate financial independence in the state for at least 12 months before enrolling in school. Even so, some schools still may not recognize the student as an independent resident.
    4. Dependency: If parents claim the student as a dependent on their taxes, the student is considered a resident of the state in which the parents hold residency. If the parents move to a different state, the student’s residency may not change. If the parents are divorced and live in different states, the student may qualify for residency in both states, depending on where the financial support comes from

Again, these are basic guidelines. Make sure to go on the individual college’s website to verify its residency requirements.