gap year and tax confusion

caffeineaholic · Apr 14, 2008

any advice about filing taxes for those who are taking a year off and have lived in multiple states? I'm confused as to which states I need to file in.

In 2007, I:

-attended and graduated from school in state A (considered an out of state student). I had no income. I don't think I need to file taxes for state A.

-returned to my home state B for 1 month. I still have my driver's license from state B. I had no income. Do I need to file taxes for state B as a part-year resident?

-moved to state C, where I have been working for almost 7 months (and thus generating income). I am filing taxes for state C as a part-year resident.

I would appreciate any insight that anyone could share as I think there may be other pre-allo people in the same situation. Thanks!

cpa2md · Apr 14, 2008

caffeineaholic said:
any advice about filing taxes for those who are taking a year off and have lived in multiple states? I'm confused as to which states I need to file in.

In 2007, I:

-attended and graduated from school in state A (considered an out of state student). I had no income. I don't think I need to file taxes for state A.

-returned to my home state B for 1 month. I still have my driver's license from state B. I had no income. Do I need to file taxes for state B as a part-year resident?

-moved to state C, where I have been working for almost 7 months (and thus generating income). I am filing taxes for state C as a part-year resident.

I would appreciate any insight that anyone could share as I think there may be other pre-allo people in the same situation. Thanks!

State A - you are a non-resident, and with no income, I'd ignore them.

State B - you are at least a part-year resident. I would not ignore them, but since you have no income there, you will owe no taxes. IF you still have your driver's license, bank accounts, etc. in State B and intend to return there, you are a full-year resident (and a nonresident of State C). Go ahead and file a return, especially if you have in the past. It will save you from notices in the future.

State C - you will have to file with them, but whether you are a non-resident or a part-year resident depends on your status with State B. If you have moved to State C with the intention of establishing residency (voting, banking, etc.), then you are a part-year resident. If you are just "visiting" the state to kill a few months working, you are still a nonresident. It basically makes little difference to most states as long as you file.

Hope this was clear enough!

SgtDoc · Apr 14, 2008

cpa2md said:
State B - you are at least a part-year resident. I would not ignore them, but since you have no income there, you will owe no taxes.

Not necessarily true, it depends on the state. Some states (like CA) make you pay taxes regardless of where you earned the money.

caffeineaholic · Apr 14, 2008

cpa2md said:
State A - you are a non-resident, and with no income, I'd ignore them.

State B - you are at least a part-year resident. I would not ignore them, but since you have no income there, you will owe no taxes. IF you still have your driver's license, bank accounts, etc. in State B and intend to return there, you are a full-year resident (and a nonresident of State C). Go ahead and file a return, especially if you have in the past. It will save you from notices in the future.

State C - you will have to file with them, but whether you are a non-resident or a part-year resident depends on your status with State B. If you have moved to State C with the intention of establishing residency (voting, banking, etc.), then you are a part-year resident. If you are just "visiting" the state to kill a few months working, you are still a nonresident. It basically makes little difference to most states as long as you file.

Hope this was clear enough!

Thanks for the information!

Jolie South · Apr 14, 2008

moving to Finance & Investment.

gap year and tax confusion

caffeineaholic

Full Member

cpa2md

Amending my life

SgtDoc

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caffeineaholic

Full Member

Jolie South

is invoking Domo. . .

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