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A lot of talk on this out of state/instate business, but I can't believe no one has elaborated upon this, here's a simple plan to follow if you're going to an out of state public school and you want to pay in-state tuition even for your first year (cheapass).
Since schools consider you an in-stater if you filed income taxes for that state in the year preceding D1, find a way to receive a salary or paycheck in that state.
If you have a good friend or relative who owns his/her own business, simply have him/her add you as an employee, pay you a salary, and then you just file taxes. If you do not, this is what you can do (this obviously is provided you know the school you're going to go to well in advance of 4/15) :
1) incorporate yourself within the state that you'll be going to school. This is a very routine procedure, you can do it yourself, you can get a tax guy to help you out, or you can pay for one of those "incorporate yourself" companies. Fees vary state to state, but usually between 100-800 bucks to fill out the paperwork and register with the state's treasury department.
2) go to a bank and set up a payroll checking, or do it with your CPA, again basic payroll is not expensive compared to the 10, 20k you'll be saving in tuition
3) pay yourself (you, the individual) from your corporation (your corporation, which is a separate identity even if you are the chairman, board, and sole employer).
4) you now have an income which allows you to file your taxes in that state. Do so and voila! In-state tuition! Now take that money you saved and go buy yourself some cool toys, neat gadgets, and the love of that honey-skinned dancer in Tahoe.
Note, check with your school in question, some might require more than income-taxes filed but from the schools I've seen that's usually enough. Besides, once you become a practicing dentist you'd probably incorporate yourself anyways to take advantage of tax-deductibles, income splitting, and etc.
Since schools consider you an in-stater if you filed income taxes for that state in the year preceding D1, find a way to receive a salary or paycheck in that state.
If you have a good friend or relative who owns his/her own business, simply have him/her add you as an employee, pay you a salary, and then you just file taxes. If you do not, this is what you can do (this obviously is provided you know the school you're going to go to well in advance of 4/15) :
1) incorporate yourself within the state that you'll be going to school. This is a very routine procedure, you can do it yourself, you can get a tax guy to help you out, or you can pay for one of those "incorporate yourself" companies. Fees vary state to state, but usually between 100-800 bucks to fill out the paperwork and register with the state's treasury department.
2) go to a bank and set up a payroll checking, or do it with your CPA, again basic payroll is not expensive compared to the 10, 20k you'll be saving in tuition
3) pay yourself (you, the individual) from your corporation (your corporation, which is a separate identity even if you are the chairman, board, and sole employer).
4) you now have an income which allows you to file your taxes in that state. Do so and voila! In-state tuition! Now take that money you saved and go buy yourself some cool toys, neat gadgets, and the love of that honey-skinned dancer in Tahoe.
Note, check with your school in question, some might require more than income-taxes filed but from the schools I've seen that's usually enough. Besides, once you become a practicing dentist you'd probably incorporate yourself anyways to take advantage of tax-deductibles, income splitting, and etc.
