I'm a college student who worked and lived in a different state than I'm registered in. Should I change my residency?

[mpurdy1030]

I'm a student in Delaware but my parents live, and I'm from, Pennsylvania. In the past I've always filed as a Pennsylvania resident because I would work in PA during the summer. However, for 2016, I only made income in the state of Delaware and Pennsylvania still wants to tax me for my income made in Delaware. The way TurboTax made it sound is that it thinks I made money in both states, even though I have no W-2 or taxable income from PA. Because I lived on-campus from Jan-May 2016 and then in an apartment from June-Dec in Delaware and only made money in the state of Delaware, I'm wondering if I can/should change my residency from full-time or even part-time Pennsylvania and part-time Delaware resident to a full-time Delaware resident.

[DDollar · Accepted solution]

Living in another state while you go to college does not in and of itself change your state residency.  While away at school, you are still considered to be living in your home state.  So, for 2016, you were a Pennsylvania resident.  If you are required to file, you will need to file a Pennsylvania resident tax return.  If you worked in Delaware and are required to file there you will need to file a non-resident tax return.  Your Delaware income will be reported as taxable income on both returns; however if you pay any state tax to Delaware, Pennsylvania will give you a credit for the Delaware state tax.

As for whether or not you should change your state of residence, you will have to weigh the costs and benefits of that and make the determination yourself based on the specifics of your situation.