Tax Domicile State for Working Teen and Parents in Military Posted out of HOR

[SteamTrain]

Here's one I haven't seen covered, even in the various Military websites.

1) Military Service Parent and civilian spouse posted in PA, but their State-of-Legal-Residence (SLR) is TX.

2) Teen lives with them all year, and works in PA on weekends.

Does teen need to file a PA tax return as a PA Nonresident, or as a PA resident?

Certainly the civilian spouse gets to keep TX as SLR while living/working for W-2 in PA, but how about the dependents?

Tax difference wouldn't be too much, primarily whether the teen's interest and UTMA $$ get taxed. PA has a really-low filing requirement so PA will be required even if Federal isn't.

[RobertB4444]

If the teen is a dependent on your tax return then they are a Texas resident.  They will file as a Pennsylvania non-resident exactly as you or your spouse would if you had a side gig in Pennsylvania.

@SteamTrain 

[SteamTrain]

Thanks. 

Not me personally, but family member I've been struggling to help/advise....and deferring on this particular point.

Wonder if anyone else has a contrary opinion. 

I've been leaning PA nonresident too, but only 61% sure.

[RobertB4444]

Sorry, I think I should have been more clear.  My answer was Pennsylvania specific.  Different states have different rules for what they do with service member's families.  They all recognize spouses because of the MSRRA but they don't all recognize dependents and family members.  Pennsylvania does.  You'll have to do a different check for other states.

Here's a link to the Pennsylvania residency page.

The other thing to consider when establishing residency for your son is schools.  If he wants to attend a state school in Pennsylvania it can be a good idea to establish his residency there.

@SteamTrain