Question

Part year resident or non resident for filing state taxes?

Forum|Forum|1 year ago
February 23, 2025
1 reply
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My Daughter was living in Indiana from Jan 1 to May 12 (Student in an apartment, no earned income), moved to IL from May 13 to Jun 13(although still was paying rent in IN), got a job and then moved back to IN for remainder of the year.

A relocation payment was reported as IL income on a W2 since it was paid in early June while she was living in IL to cover moving expenses. The remainder of income is reported as IN. I thought all income would be reported and IN, but it wasn’t.

Should this be filed as part year resident of each state or Resident of IN with Non-resident income in IL?

AmyC

Employee

Understanding the residency rules and asking her questions, you will be able to determine if she was a part year resident of both states or a nonresident of IL. Not knowing your state, she could be resident or part-year resident for IN.

A student is usually considered a resident of the parents state unless they actually got a license, car insurance, etc to move there.
The move to IL was does not seem like an actual move since still paying rent in IN.
- She was either a non-resident passing through or
- if she got a license and moved car insurance, registered to vote, etc then she did become a part year resident of IL.

Here are some things states look at when determining residency from The Tax Book:

Registering to vote and voting in the new state.
Purchasing residential property.
Titling and registering vehicles.
Paying state income tax to another state
Notifying the state of previous legal residence/domicile of the change in state of legal residence/domicile.
Preparing a last will and testament which indicates the new state of legal residence/domicile

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