When I move out of state to go to medical school, will I have to pay state/property taxes for my original state or for the new state I'll be in? I know that for purposes of tuition, I'll still be a resident of my current state, but does that also matter for taxes?
Question about moving out of state and taxes
- Thread starter TheMan21
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What income are you concerned about?
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For tax purposes definitely look up the fine print in the state codes for yourself. That said, a lot of states (you know, the five or something I've looked at... so, uh, a few) define resident as where you have your domicile, where you intend to come back if you go on trips, etc, except they say it less simply of course. So you can make an argument both ways possibly.
If you move to a new state and you have the forms they require as proofs of residency, switch your license, your car, and your voter registration, and pay taxes in the new state if it works better for you. Some states might make it harder (VA i seem to recall) to become a resident but for others it is pretty simple.
Whether you're allowed to remain a resident of your old state I dunno - as a grad student in an institution of higher learning i stayed in my old state as a dependent, then for a couple of years as an independent still paying to my old state. I could claim I was only here for school, my only tie was to school, and my intent to return was to my old state vs stay here (which is the argument they use on their side in not giving me in state tuition). I think you can typically do that but check the fine print. I've now switched to the state I go to school in (but like you wouldnt necessarily get instate tuition here because i'm in school).
Only thing then is you might have to file two state tax forms. Your income in your new state may be taxed by your new state, so you'll fill out forms as a nonresident there, and your home state tax form will be as a resident who earned income out of state, and your home state should apply what taxes you've already been charged by newstate against the balance that homestate wants from you. So that can be kind of a pain if both states have income tax.
Hopefully marginally clearer than mud.
If you move to a new state and you have the forms they require as proofs of residency, switch your license, your car, and your voter registration, and pay taxes in the new state if it works better for you. Some states might make it harder (VA i seem to recall) to become a resident but for others it is pretty simple.
Whether you're allowed to remain a resident of your old state I dunno - as a grad student in an institution of higher learning i stayed in my old state as a dependent, then for a couple of years as an independent still paying to my old state. I could claim I was only here for school, my only tie was to school, and my intent to return was to my old state vs stay here (which is the argument they use on their side in not giving me in state tuition). I think you can typically do that but check the fine print. I've now switched to the state I go to school in (but like you wouldnt necessarily get instate tuition here because i'm in school).
Only thing then is you might have to file two state tax forms. Your income in your new state may be taxed by your new state, so you'll fill out forms as a nonresident there, and your home state tax form will be as a resident who earned income out of state, and your home state should apply what taxes you've already been charged by newstate against the balance that homestate wants from you. So that can be kind of a pain if both states have income tax.
Hopefully marginally clearer than mud.
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For income taxes you file in multiple states and pay in each state for what you earned in that state.
Edit: Of course this assumes you meet both the state's criteria for filing, check the state tax codes to see if you need to file.
Edit: Of course this assumes you meet both the state's criteria for filing, check the state tax codes to see if you need to file.
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I should have been more specific - property tax for my car, and income tax for my wife (who will hopefully be working).
FWIW I'm moving from MO to KY. I guess there are no general rules for this, so I'll look into myself. Thanks for the replies.
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Going off this, I just want to clarify something.
I live and work in Colorado. I will be moving to another state for medical school. Obviously, I've paid CO state taxes, and will up until I quit my job to move. I have a chance of becoming a resident in the new state. I will file '10 taxes. Will I be penalized if I file for CO, but am not eligible to file for the new state, since I won't be making much of any income there?
I live and work in Colorado. I will be moving to another state for medical school. Obviously, I've paid CO state taxes, and will up until I quit my job to move. I have a chance of becoming a resident in the new state. I will file '10 taxes. Will I be penalized if I file for CO, but am not eligible to file for the new state, since I won't be making much of any income there?
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If you're domiciled in KY then you should (technically) get KY drivers licenses, register to vote in KY, register your cars in KY, pay KY property taxes, and your wife will pay KY state income taxes.
There is no reason I can think of to retain any ties to MO.
The rules for being a resident of a state for tax purposes and those for in-state tuition are completely different. Chances are that you will qualify for residency for voting and tax purposes almost immediately, while establishing residency for tuition purposes will take much longer, but are possible for a married student. For an unmarried student, you won't ever get in-state tuition in many states, although not all of them.
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I don't know if this helps much, but I moved from Colorado to Washington last summer for work. Washington doesn't have state income tax that came out of my paycheck. When I e-filed my taxes, I owed the state of Colorado for income tax (not really very much). I'm not sure how it would have worked if WA would have had income taxes deducted from pay checks. This was my first year having to deal with that. I'm still a Colorado resident. PS... if you lose your CO license, it really sucks trying to get another copy sent out of state lol. They keep switching the fees I'm supposed to pay. It's taken me three months to get it thanks to the 20 day processing each time I send their new requirement in lol.
