My daughter is a Resident & FT student in OR. She works in CA School Breaks earns less than 3k. Does she file in CA or OR. I'm a CA resident,can I claim her as dependent?

[mateshinai]

Daughter also receives financial aid in her Oregon University. with her little income she earned from CA less than 3k, she may not have to file, but what if I claim her as a dependent in the state of CA will she still need to file? If so, where OR or CA or both?

[maglib · Accepted solution]

you say she is a resident of OR. Normally students are not considered residents, her school is normally considered temporary, your resident is the place you intend to return to and maintain a abode.  If you claim that she resides in OR you may lose her as your dependent.  

In general, to be YOUR taxpayer’s qualifying child, a person must satisfy four tests:
? Relationship – the taxpayer’s child or stepchild (whether by blood or adoption),
foster child, sibling or stepsibling, or a descendant of one of these.
? Residence – has the same principal residence as the taxpayer for more than half
the tax year. Exceptions apply, in certain cases, for children of divorced or
separated parents, kidnapped children, temporary absences, and for children who
were born or died during the year.
? Age – must be under the age of 19 at the end of the tax year, or under the age of
24 if a full-time student for at least five months of the year, or be permanently and
totally disabled at any time during the year.
? Support – the child did NOT provide more than one-half of his/her own support for the year.

[mateshinai]

Thank you for the info. She is an Oregon Resident, Her Driver's License is with the OR DMV as well as her vehicle registration. She moved there and became a resident 3 years ago. She is now 20 yrs old, her mother and I are divorced. But we reside in CA. only our daughter is in OR. She does come visit summer and winter break and work during her vacation.

[mateshinai]

The reason why I wanted to claim her as a dependent because I send her money monthly to help her pay her expenses, food, rent, etc..
But if she is a Resident of OR and I am in CA, I guess I cant claim her if that's the case.

[maglib]

If she does not reside with either parent for more than half the year, then she can claim herself. If she lives with someone else in OR they may be able to claim her as their dependent as she is under the qualifying relative rules (note you do not need to be a relative to be able to be claimed) income of $4,050 as long as she lived in their home and they provided more than half her support (possible grandparents, boyfriend working, etc).

[maglib]

CA is a stickler for residency rules.  They often will tax people who claim they no longer reside in CA and if she didn't file a change of address for her voting records, Drivers License, CA will still consider her a resident.

Is all her income from CA sources?  If you claim she resides in OR she actually has to file in both states.

She would be a resident of OR and file as a part year or non-resident of CA.  OR will give a credit for taxes paid to another state.

If she lives in CA (as I believe she really resides there), she would only file a resident state CA return since no income was earned outside of CA.

I hope this was helpful?

[mateshinai]

Thank you for the info.. Her Driver's License and her Vehicle insurance are both Oregon DMV issued. Her main mailing address is with her Grandmother's address in OR. Her CA ID expires this month since only her CA Drivers license was punched once she obtained her Oregon DL.  All her income are CA sources during Summer & winter school break, she comes to me to CA and work.. income totals to about 3k.

[maglib]

Actually if her income is only $3k she does not need to file a tax return in OR as she can claim herself since she does not live with you for more than half the tax year.  Were CA taxes wittheld from her paycheck?

[maglib]

<a rel="nofollow" target="_blank" href="http://www.oregon.gov/dor/programs/individuals/pages/file-requirements.aspx">http://www.oregon.gov/d... rules of who must file

[maglib]

she also has no need to file in CA as her income is under non-resident who must file <a rel="nofollow" target="_blank" href="https://www.ftb.ca.gov/forms/2017-California-Tax-Rates-and-Exemptions.shtml#ifr">https://www.ftb.ca....>

[mateshinai]

Yes, she have not lived with me for over 10 years since my divorce with her mother..  I have not claimed her since.  No taxes were taken from one of her job, while the other they took out a little over $100. She had two different places she worked part time during summer and winter breaks  thx again!

[maglib]

Her income is also under IRS filing requirements.  So unless she had taxes withheld or is trying to claim AOTC  (does not matter who paid the tuition, she can claim her 1098-T)  There is no need to file.  You may want to file federal for the Education tax credits though.

[mateshinai]

Thank you.. Ok I will forward this message to her.. Many many thanks