Wondering if any OOS students who did not receive enough scholarships to waive the OOS fee have pursued, or are considering pursuing, obtaining Texas residency? From my research, it would entail paying OOS the first year while qualifying for residency and then in state the next year? Wondering if there are any tips or advice out there? Thank you!
@emcnalley There is a bit to it,
To qualify as a Texas resident, an individual must 1) reside in Texas for one year prior to enrollment and 2) establish a domicile in Texas prior to enrollment. An applicant or student who is claimed as a dependent on a parent’s most recent federal tax return will be classified based on the parent’s qualifications for residency.
You can read and review the residency rules at Residency Rules (Texas Administrative Code Rule §21.24).
http://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=T&app=9&p_dir=N&p_rloc=181014&p_tloc=&p_ploc=1&pg=4&p_tac=&ti=19&pt=1&ch=21&rl=21
For number 2, establishing a domicile in Texas, that means you establishing a domicile at your expense for 12 months prior to the semester.you will enter for instate tuition. Gainful employment for those 12 months is also a factor. (Gainful employment requires an average employment of at least 20 hours per week for one year or earnings equal to at least half of tuition and living expenses for one 9-month academic year. Employment conditioned on student status such as work-study, the receipt of stipends, fellowships or research or teaching assistanceships does not constitute gainful employment.)
Here is a link to core residency questions http://www.thecb.state.tx.us/reports/PDF/9328.PDF?CFID=80168925&CFTOKEN=19706972
You could take a gap year and work in TX, paying your own way and claiming yourself on taxes instead of your parents.
Going to college for a year in the state does not establish residency.
Here is a little more on the topic.
How do I establish residency?
One must be an independent (not claimed as a dependent for income tax purposes), US citizen or permanent resident, (have a green card, also known as card I-551 or the evidence of I-551 stamp in the passport) or international student who is eligible to establish a domicile in Texas and live in the state of Texas for 12 consecutive months and establish a domicile in Texas prior to enrollment.
My parents are claiming me as a dependent for tax purposes. How do I establish residency or how do they establish residency?
If your parents are Texas residents and reside in the state of Texas and are claiming you as a dependent on their income tax return or are eligible to claim you as a dependent, then your residency will be Texas once your parents have met the residency requirements.
What do I need to do, or what documents do I need to fill out when I apply for Residency?
A prospective student must have an admission application on file before submitting the Residency Core Questions or the Residency Affidavit. Currently enrolled students may submit the Residency Core Questions once they or their parents have lived here for 11 consecutive months.
How do I establish a domicile in Texas?
A domicile in Texas is presumed if, at least 12 months prior to the census date of the semester in which he or she is to enroll, at least one of the following applies: 1) the person owns real property in Texas, 2) the person owns a business in Texas, 3) the person is married to someone who has established a domicile in Texas, 4) the person has had gainful employment other than work-study and other such student employment in Texas.
My parents live in a state other than Texas and they are claiming me as a dependent on taxes, can I establish residency?
If your parents claim you and they live in another state, you are not eligible to establish residency while being claimed as a dependent. Students over the age of 18 whose parents do not claim them as a dependent on their tax return can establish residency as an independent student (see first FAQ question for information on how to establish residency).
I received Resident status some time after classes started. Will I get a refund for the out-of-state portion fee bill that I have previously paid?
The Residency Core Questions must be submitted by the census date of the relevant term in order for a Texas resident classification to be effective for that current semester.
Thank you for the great references. What does this look like in practical application? If my daughter claims independent for taxes, lives in TX for the 12 months preceding her sophomore year, she could own property, a business or be gainfully employed to satisfy the last requirement. Does she have to live in any property she owns? She will live in dorm - could she rent the property out that first year? We also need to know more about independent - can we pay towards her education still? What about health insurance?
These big state schools really have no interest in helping OOS students gain residency. Unless she is 24, married, or has a child, the only way she will be considered a resident while a student is if a parent moves there for 12 months and establishes residency. Utah seems to be one of the only exceptions, where an OOS student who lives in Utah during summers can qualify for in state tuition starting year 2.
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Here is Texas A&M page for residency.
http://registrar.tamu.edu/Catalogs,-Policies-Procedures/State-Policies/Residency/Establishing-Residency#1-IndependentIndividuals
The section under independent individuals says:
If you filed as an independent (or filed jointly with your spouse) for the previous tax year on your most recent tax filing, and you do not receive the majority of your financial support from another person who is not your spouse, you may gain residency if you establish and maintain a domicile in Texas and show your intent to establish residency in Texas.
To establish residency you must meet the following criteria:
Physically reside in Texas and have for the previous 12 consecutive months; AND
Establish and maintain a domicile in Texas for 12 consecutive months. The following factors, if maintained for twelve consecutive months while residing in Texas, may lend support to a claim of domicile and intent to establish residency in Texas:
Ownership of residential real property in Texas which is your primary residence (so, no dorm living)
Ownership and customary management of a business in Texas which is regularly operated without the intention of liquidation for the foreseeable future.
Gainful employment that is sufficient to provide at least one-half of the individual’s expenses or that represents an average of at least twenty hours of employment per week. Employment conditioned on student status, such as work study, the receipt of stipends, fellowships, or research or teaching assistantships does not constitute gainful employment.
Marriage to a person who has resided and maintained domicile (items a-c above) in Texas.