I think you are hung up on her having had a Colorado license and how having a California license. A license is A factor in determining state of residence but not THE determining factor. I really think California is going to look at a lot of other factors before granting her instate tuition.
Is this kid looking for instate tuition in CA?the kid is a student at Northeastern…I was not under the impression she was looking for instate CA tuition.
And the parent is hoping for merit aid at Cal for law school. When is the student hoping to start Cal Law (assuming she is accepted)?
Did she earn less than $34,000?
My kids file free federal and state with TurboTax Freedom edition.
https://turbotax.intuit.com/taxfreedom/
Some states tax all income a resident received, no matter where they earned it.
Some states have reciprocal agreements with neighboring states.
I guess it will matter which states she is considered to be a resident of, and where she earned income.
I would try to enter her info into the TurboTax online program and see what it comes up with.
If it tries to charge you for other state returns, then you can see if you can file for free for those states on paper or online at the state revenue website.
The residency question for tuition purposes is more or less a secondary issue/question. Even if she did get accepted to an in-state school, the tuition difference is not that much.
The main question that I have at this point is whether she needs to file for Colorado and/or California for 2018. That’s where the confusion lies.
I suggest you go to those states’ websites and read the section titled something like “Do I have to file?” They are the final arbiters and it’s usually spelled out pretty clearly.
It looks like your D would qualify for IRS Free File which, depending on which company she goes with, can include multiple state returns also for free. I’m pretty sure TaxAct will do up to 3 state returns as part of the free deal. To get the Free File benefits, the taxpayer has to access the company through the IRS Free File link - including every time they log in, if they don’t finish in one sitting.
TaxAct and other tax prep companies will file the state returns but they really don’t get into the question of whether you actually have to file. You or your D will need to research that on your own.
Thanks to all for your comments. She used the TurboTax online version which was totally free. She did MA and NY, and although by MA definition she is a MA resident, by CA rules she technically is also a CA resident as well, so she did the CA one also. Since filing was free, and no income in CA, no big deal.
There’s a funny line in the MA state taxes that asked if she wanted to pay the higher 5.8% rate rather than the 5.1% rate. I’m sure there’s some good reason why someone would want to do that, but it seemed funny the way it was worded.
My son was struggling with this this afternoon. He’s in the Navy so he can declare his home state where he grew up, even though he’s lived for the last year in a different state.
Colorado taxes do not have to be filed in this case, because she neither lived their nor earned any income there. She has filed a MA resident return, and NY non-resident. If she intends to establish CA residency, she should also file a CA resident return, listing your home as her domicile. MA residency is a specific requirement for tax purposes only, and has nothing to do with her domicile or permanent residence.
If she has the need to file multiple state returns next year, she can check their tax agency websites - many allow free filing directly from their websites.
Professor:
- Don't get tax advice from college confidential.
- She doesn't have to pay all that money to do this, and I wouldn't be surprised if some of those states have agreements. It is really weird for someone with her income to have 4 filing requirements.